Paytm reported profitability across key financial metrics in Q1 FY26, marking a significant milestone for the Indian fintech firm.

The company posted a net profit of 123 crore rupees (US$14.2 million) for the quarter, with an operating revenue of 1,918 crore rupees (US$222 million), reflecting a 28% increase year-on-year.

The growth was driven by more subscription merchants, a higher gross merchandise value (GMV), and increased financial services revenue.

Contribution profit rose by 52% year-on-year to 1,151 crore rupees (US$133.2 million), resulting in a contribution margin of 60%.

The company reported EBITDA profitability of 72 crore rupees (US$8.3 million), representing a margin of 4%.

Cash reserves stood at 12,872 crore rupees (US$1.5 billion), which it plans to use for expanding merchant payment solutions, financial services distribution, and AI-led innovations.

Paytm reported having 1.3 crore merchant device subscriptions across small and medium enterprises (MSMEs) and enterprise merchants.

Recent Paytm developments