Fintech agency Paytm reported a turnaround in profitability and improved working leverage for the quarter ended December 2025.

For Q3 FY26, Paytm reported income from operations of Rs 2,194 crore, which was 20% increased yr on yr in contrast with Rs 1,828 crore in the identical quarter final yr. Revenue was also 6% higher sequentially from Rs 2,061 crore in Q2 FY26. Different revenue for the quarter stood at Rs 212 crore, taking complete income to Rs 2,406 crore.

For the 9 months ended December 2025, income from operations elevated 24% to Rs 6,173 crore from Rs 4,989 crore within the corresponding interval final yr. Funds providers income rose 21% yr on yr to Rs 1,284 crore in Q3 FY26, supported by increased funds GMV, development in service provider subscriptions, and elevated utilization of affordability-led merchandise similar to bank cards and EMIs.

Web cost income elevated 25% yr on yr to Rs 613 crore. Income from distribution of economic providers grew 34% yr on yr to Rs 672 crore, pushed primarily by increased service provider mortgage distribution. Advertising providers income declined 11% yr on yr to Rs 238 crore.

Different working income elevated 64% yr on yr to Rs 92 crore. Cost processing fees elevated 18% yr on yr to Rs 671 crore and remained at 0.11% of GMV. Promotional cashbacks and incentives elevated to Rs 69 crore in contrast with Rs 37 crore within the year-ago quarter.

Different direct bills declined 22% yr on yr to Rs 205 crore attributable to decrease assortment and default loss assure prices. Complete direct bills rose 9% yr on yr to Rs 945 crore.

Contribution revenue elevated 30% yr on yr to Rs 1,249 crore, and contribution margin improved to 57% from 52.5%, an growth of 447 foundation factors. Oblique bills declined 8% yr on yr to Rs 1,092 crore.

Worker prices fell 5% yr on yr to Rs 721 crore. Advertising bills declined 26% yr on yr to Rs 77 crore. Cloud and knowledge centre prices elevated 8% yr on yr to Rs 166 crore, whereas different oblique bills declined 23% yr on yr to Rs 128 crore. Complete expenditure for the quarter stood at Rs 2,175 crore, in contrast with Rs 2,220 crore in the identical quarter final yr.

Paytm reported EBITDA of Rs 156 crore in Q3 FY26, in contrast with an EBITDA lack of Rs 223 crore in Q3 FY25. EBITDA margin improved to 7% from adverse 12%.

Revenue after tax (PAT) stood at Rs 225 crore, in contrast with a lack of Rs 208 crore within the year-ago quarter, and elevated greater than ten instances sequentially from Rs 21 crore in Q2 FY26.

For the nine-month interval ended December 2025, contribution revenue elevated 38% yr on yr to Rs 3,606 crore, with contribution margin enhancing to 58% from 52%. Oblique bills declined 20% yr on yr to Rs 3,236 crore. EBITDA for the nine-month interval stood at Rs 370 crore, in contrast with a lack of Rs 1,418 crore within the corresponding interval final yr. EBITDA margin improved to six% from adverse 28%.

Operationally, Paytm reported positive factors in client UPI market share for the third consecutive quarter. Shopper UPI GMV grew 35% during the last 9 months, in contrast with trade development of 16% throughout the identical interval. Service provider system subscriptions reached 1.44 crore as of December 2025, with internet additions of 27 lakh yr on yr.

The variety of clients utilizing monetary providers via the Paytm platform elevated from 5.9 lakh to 7.1 lakh yr on yr. In the course of the quarter, Paytm obtained all three key cost licences from the Reserve Financial institution of India for on-line, offline, and cross-border funds via Paytm Cost Providers Restricted.

The corporate additionally resumed onboarding of on-line retailers after securing the Cost Aggregator licence within the earlier quarter. Paytm said that it has discontinued the usage of adjusted metrics and is now reporting all disclosures utilizing GAAP or commonplace definitions. The corporate expects oblique prices to develop at a slower tempo than income over the medium time period. Depreciation and amortisation declined 19% yr on yr to Rs 133 crore in Q3 FY26.

For the complete yr FY26, depreciation and amortisation is predicted to be within the vary of Rs 500 crore to Rs 600 crore, which is decrease than FY25.

Paytm’s money stability, together with pre-funded quantities in escrow and nodal accounts, stood at Rs 12,882 crore as of December 2025, in contrast with Rs 12,850 crore a yr earlier.

The quarter additionally noticed modifications in shareholding. Elevation Capital offered a 1.86% stake in Paytm via a bulk deal valued at Rs 1,556 crore. BNP Paribas offered roughly 1.05 crore shares for round Rs 1,331 crore. Built-in Core Methods offered 32.55 lakh shares value about Rs 410 crore.