🧠 Food for thought

Implications, context, and why it matters.

### Paytm’s Q3 profit mix limits assessment of sustainability

• A net profit of 2.25 billion rupees was reported in the third quarter, compared with a loss of 2.08 billion rupees a year earlier. The split between profit from core operations and other income was not provided in the cited material. Other income in Q3 FY26 was INR 212 Cr (2.12 billion rupees) 1.
• A segment-level profit split between the financial services business and the payments business was not included in the cited material, so the earnings mix cannot be assessed 1.
• Operating metrics were shared, including nine-month growth in consumer Unified Payments Interface (UPI) gross merchandise value (GMV) and merchant device subscriptions 1.

### Financial institutions can leverage Paytm as a distribution channel

• Banks, insurers, and non-banking financial companies (NBFCs) can use Paytm to reach customers. NBFCs are lenders that operate like banks but typically do not take retail deposits. The quarter had 7.6 Cr average monthly transacting users (MTUs) 1.
• Paytm said the number of customers using loans, wealth and allied products rose to 7.1 Lakh from 5.9 Lakh a year earlier, suggesting stronger cross-sell 1.
• As of December 31, 2025, Paytm had unutilised IPO proceeds of INR 2,000 Cr (20 billion rupees) 2. The funds were allocated for new business initiatives, acquisitions, and strategic partnerships 2.