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Paytm turns the corner with Rs 225 crore profit in Q3 results
NOIDA: One 97 Communications, the parent company of Paytm, has swung decisively into the black, posting a profit after tax of Rs225 crore for the quarter ending December 2025, an improvement of Rs433 crore year-on-year. The digital payments pioneer has now clocked three consecutive quarters of profitability, with EBITDA reaching Rs156 crore and a margin of seven per cent, up from a Rs 223 crore loss in the same quarter last year.
The Noida-based firm’s operating revenue grew 20 per cent year-on-year to Rs2,194 crore, driven by higher payments, gross merchandise value, merchant subscriptions and financial services distribution. Like-for-like revenue growth stood at roughly 25 per cent, with the reported figure reflecting the timing of festive sales, lower loan distribution under default loss guarantee programmes and a more conservative revenue recognition policy.
Paytm is clawing back consumer market share in the fiercely competitive unified payments interface space. Its consumer UPI GMV jumped 35 per cent over the past nine months, handily beating industry growth of 16 per cent. The company’s AI-first, product-led strategy has delivered consistent gains for three consecutive quarters, a striking reversal after years of playing catch-up to rivals such as PhonePe and Google Pay.
“Building on this momentum, we have prudently invested in promotional expense to boost consumer retention and market share gain,” the company said in its earnings release. Promotional cashbacks and incentives rose to Rs69 crore from Rs37 crore a year earlier, with initiatives such as the Gold Coin campaign driving customer retention benefits.
The firm’s merchant business remains robust. Device subscriptions reached 14.4 million, an addition of 2.7 million year-on-year, expanding its recurring revenue base. Gross merchandise value grew 24 per cent to Rs6.2 lakh crore. Monthly transacting users hit 76 million, up 6 million year-on-year, as the company’s AI-powered features enhanced engagement among higher-quality users.
Contribution profit, a closely watched metric, stood at Rs1,249 crore, up 30 per cent year-on-year, with contribution margin improving to 57 per cent. The improvement stemmed from higher payment processing margins and an increased share of financial services distribution revenue, which grew 34 per cent to Rs672 crore. Customers availing financial services through Paytm’s platform increased from 590,000 to 710,000.
The company has absorbed the full impact of India’s new labour code in this quarter whilst keeping total indirect expenses down eight per cent year-on-year at Rs1,092 crore. Employee costs, excluding sales staff, declined 22 per cent, helped by lower ESOP costs following chief executive Vijay Shekhar Sharma’s voluntary surrender of employee stock options in the previous financial year.
Paytm received all three key payment licences from the Reserve Bank of India for online, offline and cross-border payments in its wholly owned subsidiary, Paytm Payment Services Limited. The approvals enable end-to-end payment aggregation services and support the company’s long-term growth ambitions. The firm resumed onboarding online merchants following receipt of the payment aggregator licence last quarter.
The firm also made regulatory strides internationally. The board of Paytm Arab Payments, a wholly owned subsidiary incorporated for the UAE market, approved issuance of 49 per cent of post-issue paid-up share capital to Abbar Global Opportunities Holdings Limited, an Abu Dhabi company. Paytm Cloud Technologies Limited, another subsidiary, has incorporated two new wholly owned subsidiaries in Indonesia and Luxembourg as part of its international expansion strategy.
Yet challenges loom. The Payment Infrastructure Development Fund incentive scheme, which contributed Rs216 crore over the nine months ending December 2025, expired in December. Management expects to “significantly offset the impact over time through a combination of higher revenues and targeted sales efforts”, though contribution margins are expected to slip to the mid-50s from 57 per cent.
Cash and investment balances stood at Rs12,882 crore, providing continued flexibility to expand the business. Depreciation and amortisation fell 19 per cent to Rs133 crore, reflecting lower device costs and a focus on refurbishment. The firm has moved away from “adjusted” metrics in favour of GAAP-basis reporting, which management said “drives appropriate resource allocation decisions”.
Sharma has steered Paytm through turbulent waters. After the Reserve Bank barred its payments bank from onboarding new customers in early 2024 over compliance failures, the company has methodically rebuilt trust with regulators whilst transforming its business model. The merchant loan distribution business, built on six years of experience, now exhibits what management calls “lower cyclicality and sustainable growth”, with repeat borrowers remaining above 50 per cent.
Looking ahead, management flagged that other income is expected to decline from the fourth quarter onwards. Maturing investments are being reinvested at lower yields following a 125 basis point repo rate cut over the past year, whilst an increase in the margin trading facility book generates operating income rather than other income. Starting in financial year 2027, income tax expense will apply to other income, which primarily comprises interest income, though operating profits will continue to be offset against carry-forward losses from prior periods.
The company noted “insignificant impact” from industry-wide regulatory changes, including the September 2025 stoppage of rent payments through credit cards and August 2025 real money gaming regulations, crediting proactive compliance measures. Sunil Kumar Bansal, company secretary and compliance officer, filed the earnings release with the Bombay Stock Exchange and National Stock Exchange on 29th January.
For a firm that bled cash for years whilst building India’s digital payments infrastructure, profitability marks a watershed moment. Whether Paytm can sustain these gains whilst fending off deep-pocketed rivals and navigating regulatory scrutiny will determine if this quarter proves a turning point or merely a fleeting respite.
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YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
