Paytm's marketing services revenue declined by 12.4% to Rs 247 crore in Q1 FY26
Paytm made a major cut in its marketing and promotional expenses by 55.2% in Q1 FY26 YoY.
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Paytm's parent firm, One97 Communications Limited, on Tuesday announced first quarter results for the fiscal year 2026. The fintech giant reported a profit of Rs 123 crore in Q1 FY26 compared to the loss of Rs 840 crore in the corresponding quarter last fiscal. In Q4 FY25, Paytm had posted a loss of Rs 544.6 crore.
The marketing services revenue of the fintech major, which includes advertising, marketing of financial services, sale of deals, gift vouchers and travel tickets, saw a decline of 12.4% to Rs 247 crore in Q1 FY26 compared to Rs 282 crore in Q1 FY25.
To boost the advertising business, Paytm aims on delivering higher ROI for advertisers by using Artificial Intelligence (AI). Meanwhile, the gross merchandise value (GMV)for ticketing, deals & gift vouchers, etc stood at Rs 2,087 crore in the June quarter FY26.
The company's EBITDA also turned profitable at Rs 72 crore, with a margin of 4%. The cash balance of the fintech giant stood at Rs 12,872 crore as of June 30, 2025, which the company has planned to utilize for the expansion of merchant payments, distribution of financial services, and AI-led innovations.
The company’s revenue from operations witnessed a 27.7% jump in Q1 FY26 amid a reduction in expenses, including marketing and promotions. Paytm's revenue from operations increased from Rs 1,501 crore in Q1 FY25 to Rs 1,917 crore in Q1 FY26. The total income of Paytm jumped to Rs 2,158 crore--a 31.6% year-on-year rise.
One97 Communication has cut its overall expenses by 18.5% year-on-year and 6.4% quarter-on-quarter.
The total expenses of the Noida-based company declined to Rs 2,016 crore in Q1 FY26 compared to Rs 2,476 crore in Q1 FY25 and Rs 2,155 crore in the previous quarter (Q4 FY25).
Paytm made a major cut in its marketing and promotional expenses by 55.2% in Q1 FY26 YoY.
The marketing expenditure of Paytm stood at Rs 99 crore in Q1 FY26 compared to Rs 221 crore in Q1 FY25. Before this quarter, Paytm promotional expenses were at Rs 142 crore--a 30.2% reduction on QoQ.
Meanehile, the net payment revenue of Paytm stood at Rs 529 crore--38% jump YoY, driven by growth in subscription merchants and an increase in payment processing margins.
The subscription merchants, who pay for devices and services, climbed to 1.30 crore, according to the company.
"We see potential of over 10 crore merchants who will accept payments, and we believe that, over a period of time, 40-50% of these merchants will need subscription services for managing their business needs," One 97 Communications mentioned in a statement.
Distribution of financial services revenue registered 100% growth YoY to Rs 561 crore. Paytm attributed the growth to merchant loans growth and improved collection performance.
"In Q1 FY 2026, 5.6 lakh key financial services customers (consumers and merchants) availed loans, equity broking, and insurance," the company stated.
