New Delhi: India’s full stack merchant payments leader serving MSMEs and enterprises Paytm (One 97 Communications Limited) has announced that it has reached a major milestone under the leadership of its Founder and CEO Vijay Shekhar Sharma.

“With a sharp focus on financial discipline and a merchant-first strategy, the company has achieved profitability across all major financial metrics in Q1 FY26, reporting a Profit After Tax (PAT) of Rs 123 core, along with Rs 72 core EBITDA,” the company has said.

The company, with over 1.30 crore subscription merchants by June 2025 — an increase of 21 lakh YoY –has deepened its market presence across India, including tier-2 and tier-3 cities.

Paytm, which is a prominent Indian fintech platform, has been providing seamless payment infrastructure and integrated commerce solutions.

Paytm’s merchant-led model is built on delivering innovation in payment acceptance tools. Paytm payment devices range from QR codes and Soundbox to Card Soundbox and All-in-One POS terminals. These payment devices have at its core the company’s robust service network.

These devices, the company has said, helped create a high-retention ecosystem, thus driving recurring subscription revenue, strengthening customer lifetime value.

Paytm’s operating revenue rose 28 percent YoY to Rs 1,918 crore in Q1 FY26 largely driven by sharp cost controls. The rise in revenue was fueled by increased merchant subscriptions, higher GMV (Rs 5.31 Lakh crore), and a 100 percent YoY rise in financial services distribution revenue to Rs 561 crore.

The fintech firm’s contribution profit climbed 52 percent YoY to Rs 1,151 crore, with a margin of 60 percent, indicating healthy unit economics.

Paytm’s cash reserves stood at Rs 12,872 crore at the end of June 2025, providing ample capital to fund further expansion in merchant services, AI innovation, and lending distribution.

“With a potential market of over 10 crore merchants, of which 40–50 percent are expected to adopt subscription services, Paytm is poised to lead India’s digital transformation,” said the company.

The platform has seen strong merchant loyalty and usage growth. Meanwhile, its lending vertical is gaining momentum, with more than 50 percent of merchant loans in Q1 FY26 disbursed to repeat borrowers, reflecting strong product-market fit and trust among users.