One97 Communications Ltd, the parent company of Paytm, reported a consolidated net profit of ₹122.5 crore for the quarter ended June 30, 2025. This marks a significant reversal from the ₹839 crore loss recorded in the same period a year ago.
The company had also reported a net loss of ₹540 crore in the previous quarter (Q4 FY25), making this a meaningful sequential turnaround.
Revenue from operations grew 28% year-on-year to ₹1,917 crore, up from ₹1,502 crore in Q1 FY25. On a sequential basis, revenue saw a modest increase of 0.3% from ₹1,911 crore reported in Q4 FY25.
The company attributed this revenue growth to a rise in the number of subscription-based merchants, increased Gross Merchandise Value (GMV), and expanding income from financial services distribution.
Paytm’s contribution profit surged 52% year-on-year to ₹1,151 crore, with contribution margins improving by 10 percentage points to 60%. This improvement was supported by enhanced net payment revenues, an increased share of financial services in total income, and cost reductions in direct expenses.
On the profitability front, Paytm turned EBITDA-positive with earnings of ₹72 crore, representing a margin of 4%. Profit After Tax (PAT) came in at ₹123 crore. The company credited its AI-led operational leverage and disciplined cost structure for the improved bottom line.
Paytm’s cash reserves stood at ₹12,872 crore at the end of the quarter, offering significant capital flexibility to invest in growth areas such as merchant payments, distribution of financial services, and AI-based innovations.
Net payment revenue rose 38% year-on-year to ₹529 crore. This growth was attributed to an expanding base of high-quality subscription merchants and improved payment processing margins.
Revenue from the distribution of financial services doubled year-on-year to ₹561 crore. The spike was driven by an increase in merchant loan disbursements, recurring trail revenue from the Default Loss Guarantee (DLG) portfolio, and improved collections.
As of July 23, 2025, shares of One 97 Communications Limited (Paytm) saw a slight decline in early trade. The stock opened significantly higher at ₹1,081.40 and touched an intraday high of ₹1,089.00.
However, it later lost momentum, falling to a low of ₹1,040.10. The last quoted price was ₹1,047.40, down ₹3.65 or 0.35% at 9:30 AM on the NSE from the previous close of ₹1,051.05.
Read More: Paytm Incorporates New Subsidiary in Saudi Arabia.
Paytm's Q1 FY26 results reflect a notable shift in its financial trajectory, with the company reporting a profit for the first time. The improvement in operating metrics, contribution margins, and revenue growth from key business segments indicates progress in its strategic focus.
While market participants may continue to assess the sustainability of these gains, the latest earnings offer a data point that highlights the company’s evolving financial performance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 23, 2025, 9:40 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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