Revenue from operations in the reporting period increased 20% YoY to Rs 2194 crore. On a sequential basis, revenues improved 6% quarter-on-quarter.
The revenue growth was led by higher payments GMV (gross merchandise value), merchant subscriptions, and distribution of financial services revenue.
Contribution profit stood at Rs 1,249 crore, up 30% YoY. Contribution margin improved to 57%, due to higher payment processing margins and increased share of distribution of financial services revenue.
The company reported an EBITDA of Rs 156 crore (EBITDA margin of 7%), despite higher promotional expenses for consumer growth and full impact of new labour code.
The overall like-for-like revenue growth was at 25%, with reported growth reflecting timing of festive, lower loan distribution under default loss guarantee (DLG), and a more conservative revenue recognition policy, Paytm said.
Segment wise, payments services revenue rose 21% YoY to Rs 1,284 crore, while nNet payment revenue grew 25% YoY to Rs 613 crore. The financial services revenue was up 34% YoY at Rs 672 crore.The company said it saw consistent gain in UPI consumer market share for three consecutive quarters. Paytm’s consumer UPI GMV was up 35% in last nine months, versus industry GMV growth of 16%
The merchant device subscriptions reached 1.44 crore, addition of 27 lakh YoY. The company is further enhancing merchant retention and engagement through AI-led targeting and an expanded merchant sales and service team
Customers availing financial services through the platform increased YoY from 5.9 lakh to 7.1 lakh. “We continue to strengthen our leadership across small and large, online and offline merchants by deepening adoption of our full-stack omni-channel payment offerings. Product innovation and AI-led merchant acquisition is improving unit economics and driving profitability,” Paytm said in a filing.
During Q3, the company’s cash balance movement has been due to higher working capital (typical in the quarter end after festive period), higher pre-funding in the merchant nodal/escrow account following the transfer of offline merchant business to PPSL as per regulatory guidelines, and growth of MTF book.
After considering pre-funded amount in Escrow as cash balance, its cash balance stood at Rs 12,882 crore as of December 2025.
On Thursday, Paytm shares closed 0.44% lower at Rs 1,171.8 on NSE.