Paytm Q1 Results: One97 Communications reports Q1 profit, offsets previous losses
One97 Communications Limited (Paytm) today announced a significant financial turnaround. The Company has reported a consolidated profit after tax of ₹1,225 million for the quarter ended June 30, 2025. The result represents a major turnaround from the loss of ₹5,446 million recorded in the corresponding quarter of the previous year and the loss of ₹8,401 million for the previous quarter ended March 31, 2025.
The Board of Directors of the Company on Tuesday approved the unaudited financial results, demonstrating strong growth and improved profitability over previous periods.
Paytm Q1 Results
Paytm Q1 results of FY25-26 shows significant improvement across all key parameters as compared to the corresponding quarter of the previous year and the quarter immediately preceding it.
* Profit/Loss: Profit of ₹1,225 million is the most significant achievement, as against a loss of ₹5,446 million in Q1 FY24 and a loss of ₹8,401 million in Q4 FY25.
* Revenue from Operations: Revenue grew to ₹19,175 million in Q1 FY26 from ₹15,016 million in the corresponding quarter of the previous year. It remained stable as compared to ₹19,115 million recorded in the previous quarter.
* Total Income: Total income for the quarter stood at ₹21,589 million. This is significantly higher than ₹16,391 million for the quarter ended March 31, 2025 and marginally higher than ₹21,353 million for the quarter ended June 30, 2024.
* Total Expenses: The Company demonstrated effective cost management, reducing total expenses to ₹20,161 million. This is lower than ₹21,549 million spent in the corresponding quarter last year and also significantly lower than ₹24,764 million in the previous quarter. For instance, employee benefit expenses stood at ₹6,426 million, lower than ₹7,483 million in the first quarter last year and ₹9,525 million in the previous quarter.
Despite the positive Paytm Q1 Results, the company continues to face legal and regulatory scrutiny, as noted by its auditors. These include:
* Show Cause Notice (SCN) of approximately ₹6,111 million by the Enforcement Directorate in relation to alleged violations of the Foreign Exchange Management Act (FEMA).
* Its joint venture, First Games Technology Private Limited (FGTPL), has been issued a significant GST liability notice of ₹57,120 million, proceedings of which have been stayed by the Supreme Court of India.
* Pending application with the Reserve Bank of India (RBI) for a payment aggregator license for its subsidiary, Paytm Payments Services Limited.
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