Paytm Q1FY26 Results: Consolidated PAT at ₹1,225 Mn vs Loss of ₹8,401 Mn YoY; Revenue Surges 28%
By Shishta Dutta | Published at: Jul 22, 2025 06:58 PM IST
Noida, July 22, 2025 — One 97 Communications Ltd (NSE: PAYTM, BSE: 543396), the parent entity of Paytm, reported its unaudited financial results for the quarter ended June 30, 2025 (Q1FY26), showcasing a sharp turnaround to profitability and sustained revenue growth across verticals.
Key Financial Highlights (Consolidated)
In Q1FY26, the company reported revenue from operations of ₹19,175 million, which remained nearly flat compared to ₹19,115 million in the previous quarter but marked a 28% growth year-on-year. Total income stood at ₹21,589 million, registering a marginal 1% increase over Q4FY25 and a 32% rise compared to Q1FY25.
The company turned profitable this quarter, posting a net profit of ₹1,225 million, a significant turnaround from the net loss of ₹5,446 million in Q4FY25 and ₹8,401 million in Q1FY25. Similarly, profit before tax came in at ₹1,265 million, in contrast to the loss of ₹5,420 million in the previous quarter and ₹8,386 million in the same quarter last year.
Segment-Wise Operational Highlights
As per management commentary, the company views itself as a single segment entity (Ind AS 108). However, operationally:
- Payment Processing Charges: ₹5,809 Mn, up YoY from ₹5,171 Mn
- Marketing & Promotions: Down sharply YoY to ₹998 Mn vs ₹2,214 Mn
- Employee Expenses: ₹6,426 Mn (includes ₹300 Mn in ESOP charges)
The company continues to optimise spends and streamline operations, supporting its transition to profitability.
Standalone Performance Snapshot
| Particulars | Q1FY26 (₹ Mn) | Q1FY25 (₹ Mn) | YoY Growth |
|---|---|---|---|
| Revenue from Operations | 15,862 | 11,488 | 38% |
| Total Income | 17,823 | 12,740 | 40% |
| Net Profit / (Loss) | 632 | (8,246) | — |
| Diluted EPS (₹) | 0.98 | (12.97) | — |
Exceptional Items – Key Developments
- A one-time ESOP cancellation charge of ₹4,924 Mn in Q4FY25 has been fully absorbed.
- Gain of ₹13,454 Mn from the sale of movie ticketing and events business to Zomato Ltd in FY25.
- Impairments in Q1FY26 included ₹53 Mn in associates and ₹114 Mn in debentures.
Regulatory Updates
- FEMA Show Cause Notice: The company and two subsidiaries received a SCN alleging contraventions amounting to ₹6,111 Mn. A legal resolution is underway.
- GST Demand on First Games JV: ₹57,120 Mn SCN issued by GST authorities; the matter is stayed by the Supreme Court as of May 23, 2025.
Utilisation of IPO Proceeds (as of June 30, 2025)
| Particulars | Allocated (₹ Mn) | Utilized (₹ Mn) | Balance (₹ Mn) |
|---|---|---|---|
| Tech & Merchant Growth | 43,000 | 43,000 | 0 |
| Strategic Investments & M&A | 20,000 | 0 | 20,000 |
| General Corporate Purposes | 18,194 | 18,194 | 0 |
| Total | 81,194 | 61,194 | 20,000 |
Funds remain deployed in fixed deposits and monitoring accounts pending strategic deployment.
Management Commentary
“We have delivered a resilient performance in Q1FY26, achieving profitability amidst operational optimization. We continue to see strength in our core payments and financial services ecosystem,” said Vijay Shekhar Sharma, Chairman, Managing Director & CEO.
About the Company
One 97 Communications Ltd, listed on NSE and BSE, is the parent company of Paytm, India’s leading digital payments and financial services platform. The company also holds stakes in Paytm Payments Bank, Paytm Money, and other ecosystem services, and is backed by prominent global investors.
REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/b43a6045-18c4-4a84-ac60-54c24ee45770.pdf
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