Paytm turns worthwhile: Fintech firm posts Rs 122.5 crore Q1 net revenue, driven by cost cuts and payments growth

Fintech main One97 Communications, which operates underneath the Paytm model, reported its first-ever consolidated net revenue of Rs 122.5 crore within the quarter ended June 2025 (Q1 FY26), helped by cost optimisation and an increase in fee revenues, the corporate stated in a press release on Tuesday.The firm had posted a net lack of Rs 840 crore in the identical quarter final 12 months, PTI reported.“EBITDA and PAT turned profitable at Rs 72 crore and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income,” Paytm stated.The firm introduced down advertising and marketing and promotional bills by greater than half to Rs 99.8 crore from Rs 221.4 crore a 12 months in the past. Employee profit bills additionally fell sharply, dropping by about Rs 300 crore to Rs 643 crore from Rs 952.5 crore within the year-ago interval.While gross sales worker prices rose 19% YoY to Rs 266 crore, the corporate recorded a 28% decline in non-sales worker prices to Rs 346 crore, citing adoption of AI in numerous processes as a key driver. The common variety of gross sales staff rose 23% YoY to 38,945.Revenue from operations for the quarter grew 28% YoY to Rs 1,917.5 crore, in comparison with Rs 1,501.6 crore in Q1 FY25, supported by a rise in fee processing margins.Revenue from fee providers, together with different working earnings, rose 23% YoY to Rs 1,110 crore, whereas net fee income jumped 38% YoY to Rs 529 crore as a consequence of improved margins and machine growth.The firm reported a 27% enhance in gross merchandise worth (GMV), reaching Rs 5.39 lakh crore in the course of the quarter. Merchant subscriptions hit an all-time excessive of 1.3 crore, up 21 lakh YoY, driven by improved units and service networks.“To further strengthen tier-1 market position and expand in tier-2 and tier-3 cities, we are investing in expanding our sales network (sales people costs are up 19 per cent YoY),” the corporate stated.The common month-to-month transacting customers (MTU) base touched 7.4 crore within the reported quarter.Revenue from monetary providers distribution doubled YoY to Rs 561 crore, led by service provider loans, path income from the DLG (Default Loss Guarantee) portfolio, and higher asset high quality.Paytm additionally reported a pointy 88% drop in ESOP prices to Rs 30 crore from Rs 247 crore a 12 months in the past and Rs 169 crore within the March 2025 quarter. In the earlier quarter, CEO Vijay Shekhar Sharma had voluntarily surrendered his ESOPs, resulting in a cost adjustment.