Paytm Reports Impressive Q3 FY26 Financial Results

Paytm, the leading fintech company, shared its financial outcomes for the third quarter of the current fiscal year (Q3 FY26) on Thursday. This Noida-based firm revealed a revenue of Rs 2,194 crore along with a net profit of Rs 225 crore for the specified period. As per Paytm’s unaudited quarterly report submitted to the National Stock Exchange, its operational revenue surged by 20% year-over-year from Rs 1,828 crore recorded in Q3 FY25.

The firm also accumulated Rs 212 crore from other non-operational channels, which elevated its total revenue to Rs 2,406 crore in Q3 FY26. In the nine-month timeframe, Paytm’s revenue witnessed a remarkable increase of 24%, reaching Rs 6,173 crore compared to Rs 4,989 crore from the previous year.

Cost Analysis and Financial Breakdown

For Paytm, employee benefits constituted the largest expense, making up 33% of the total costs. This cost decreased by 5%, amounting to Rs 721 crore in Q3 FY26. Payment processing fees rose by 17.5% to Rs 671 crore, while marketing expenditures saw an increase of 3.5%, totalling Rs 146 crore in the same quarter. Furthermore, software, communication, legal, cashback, and other operational expenses raised the overall expenditure to Rs 2,175 crore for Q3 FY26, a decrease from Rs 2,220 crore in Q3 FY25.

Net Profit Growth

Paytm achieved a net profit of Rs 225 crore in Q3 FY26, contrasting with a loss of Rs 208 crore recorded in Q3 FY25. Sequentially, the company’s profit saw an astonishing rise of over 10 times from Rs 21 crore in Q2 FY26.

Recent Developments

The preceding quarter was notably eventful for the company, highlighted by receiving authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator for offline transactions and cross-border payments. In addition, the company distributed Employee Stock Ownership Plans (ESOPs) worth Rs 16.6 crore and further allocations worth Rs 60 crore under its ESOP Scheme 2019.

A significant shift in shareholding was also observed as Elevation Capital (previously known as SAIF Partners) divested a 1.86% stake in the fintech powerhouse through a bulk transaction valued at Rs 1,556 crore. Subsequently, BNP Paribas sold 1 crore shares of Paytm worth Rs 1,331 crore, along with Integrated Core Strategies, which divested 32.55 lakh shares valued at Rs 410 crore.

As of January 29, Paytm’s share price was posted at Rs 1,172, with the total market capitalisation standing at Rs 74,963 crore (approximately $8 billion).