One 97 Communications, the company behind Paytm, reported a net profit of ₹122.5 crore for the quarter ending June 2025 (Q1 FY26). This marks a major turnaround from a loss of ₹839 crore in the same period last year.

Revenue from operations rose 28% year-on-year to ₹1,917 crore, driven by stronger business in payments and financial services. The company also managed to reduce operating costs by nearly 19%, helping boost margins.

A key factor was growth in merchant lending and disciplined cutting of expenses. Paytm’s merchant base and loan business both saw strong gains, helping offset past regulatory pressures. The company reported a positive EBITDA (before stock option costs) of around ₹1,020 crore—another sign of improved efficiency.

According to reports from Reuters and Economic Times, management expects further growth ahead and confidence remains high. This quarter marks Paytm’s first stride into steady profit, thanks to rising revenue, tighter cost controls, and a stronger lending push. Investors will now watch how the company builds on this momentum in coming quarters.