Paytm parent, One97 Communications Ltd reported a net profit of Rs 225 crore in Q3FY26, a significant turnaround from the Rs 21 crore recorded in the September quarter, when earnings had been dragged down by one-off charges.
The rebound was largely expected. Zee Business Research had estimated profit at around Rs 220 crore, and the reported number came in close to that mark. The scale of the jump, however, owes much to what happened last quarter rather than an abrupt change in operating conditions.
In Q2FY26, Paytm had taken an exceptional loss of Rs 190 crore, which distorted the earnings picture. With that behind it, the December quarter looks cleaner. The profit jump appears dramatic on paper, but strip away the base effect and the improvement is more incremental than explosive.
Revenue continued to move up, though without any major surprise. Consolidated revenue rose to Rs 2,194 crore, compared with Rs 2,061 crore in the previous quarter, a 6.5 per cent sequential increase. This was marginally ahead of the Zee Business Research estimate of Rs 2,179 crore.
The growth was driven by Paytm’s core payments and merchant businesses, which have been expanding steadily even as broader consumption trends remain uneven.
Margin pressure continues
At the operating level, Paytm reported EBITDA of Rs 156 crore, up from Rs 141 crore in Q2FY26. While this marked an improvement, it fell short of the Rs 169 crore estimated by Zee Business Research.
Margins improved, but only slightly. EBITDA margin rose to 7.1 per cent from 6.8 per cent in the September quarter, missing expectations of a sharper expansion.
Adjusted profit offers some comfort
On an adjusted basis, excluding exceptional items, profit after tax stood at Rs 220 crore, slightly above the Rs 211 crore estimate.
Change at the payments arm
Alongside the results, Paytm announced that Vijay Shekhar Sharma has been appointed Managing Director of Paytm Payment Services Ltd, reinforcing promoter oversight at a key subsidiary as the company focuses on execution and compliance.
What this quarter really says
Taken together, the December-quarter numbers show a company that is past the worst of its earnings volatility, but not yet in a phase of strong operating acceleration. Profit has rebounded sharply because last quarter was weak. Revenue is growing steadily, not rapidly. Margins are improving, but slowly.
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