Revenue growth was led by higher payments GMV (gross merchandise value), merchant subscriptions and the distribution of financial services revenue.Contribution profit stood at Rs 1,249 crore, up 30% year-on-year. Contribution margin improved to 57% due to higher margins in payment processing and a higher distribution share of financial services revenues.
The company reported an EBITDA of Rs 156 crore (EBITDA margin of 7%), despite higher promotional costs for consumer growth and the full impact of the new labor law.
Total like-for-like revenue growth was 25%, with the reported growth reflecting the timing of a celebratory lower loan disbursement under the default loss guarantee (DLG) and a more conservative revenue recognition policy, Paytm said.
Segment-wise, payment services revenue grew 21% YoY to Rs 1,284 crore, while net payments revenue grew 25% YoY to Rs 613 crore. Financial services revenue rose 34% year-on-year to Rs 672 crore. The company said it saw consistent gains in UPI consumer market share for three consecutive quarters. Paytm’s consumer UPI GMV has grown 35% in the last nine months, compared to an industry GMV growth of 16%
Merchant device subscriptions reached 1.44 crore, adding 27 lakh year-on-year. The company further improves seller retention and engagement through AI-powered targeting and an expanded seller sales and services team
Customers availing financial services through the platform increased from 5.9 lakh to 7.1 lakh year-on-year. “We continue to strengthen our leadership among small and large, online and offline merchants by deepening adoption of our full-stack omni-channel payments offering. Product innovation and AI-led merchant acquisition improve unit economics and drive profitability,” Paytm said in a filing.
During the third quarter, the movement in the company’s cash balance was driven by higher working capital (typically at the end of the quarter after the festive period), higher pre-funding in the merchant hub/escrow account following the transfer of offline merchant operations to PPSL as per regulatory guidelines, and growth in the MTF book.
After considering the pre-funded amount in Escrow as cash balance, the cash balance as of December 2025 stood at Rs 12,882 crore.
On Thursday, Paytm shares closed 0.44% lower at Rs 1,171.8 on NSE.
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