Vijay Shekhar Sharma’s resilience fuels the rise of India’s merchant payments champion

Paytm (One 97 Communications Limited), India’s full-stack merchant payments leader serving micro, small and medium enterprises (MSMEs) and enterprises, has delivered a strong Q1 FY26 earnings result with a Profit After Tax (PAT) of ₹123 Cr, marking a significant milestone as the company achieved full profitability across all key financial metrics. This performance underlines the long-term vision of founder and CEO Vijay Shekhar Sharma, who has built Paytm into India’s most trusted payment app by focusing on merchants and a technology-led payments infrastructure.

The June quarter results reflect the execution of Sharma’s long-standing vision to build a technology-first, merchant-centric payments and credit platform. Paytm continues to expand its presence across MSMEs and enterprises alike, cementing its position as India’s full-stack merchant payments leader. Paytm’s operating revenue grew 28% YoY to ₹1,918 Cr, led by an increase in subscription merchants, higher gross merchandise value (GMV), and growth in distribution of financial services revenue.

Contribution profit grew 52% YoY to ₹1,151 Cr, with margins improving to 60%, reflecting improved net payment margins, higher revenue share from financial services, and reduction in direct costs. The company also recorded ₹72 Cr in EBITDA, enabled by strong operational efficiencies and improved income generation.


The company’s subscription base for payment devices reached 1.30 Cr merchants, with a 21 lakh YoY increase, driven by consistent merchant retention and new sign-ups powered by high-quality devices and a strong service network. “We see potential of over 10 Cr 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,” the company said in its earnings release. This long-term view is powering Paytm’s investment strategy in AI-led tools, market expansion and financial services distribution.

Financial services revenue doubled to ₹561 Cr, led by robust demand for merchant loans. Notably, over 50% of disbursed loans in the quarter went to repeat borrowers, indicating strong product-market fit and trust built within the merchant ecosystem. It also reported a GMV growth of 27% YoY to ₹5.39 lakh Cr, and average monthly transacting users (MTUs) reaching 7.4 Cr, reflecting strong consumer engagement and stickiness of its platform. With a cash balance of ₹12,872 Cr, Paytm is well-capitalised to continue scaling its merchant-first model.

Paytm has invested the past 15 years in building India’s first AI-powered, omni-channel digital payments infrastructure. By pioneering end-to-end solutions tailored to merchants of all sizes, the company has become a trusted growth partner for MSMEs and large enterprises alike. Under VSS’s leadership, the company is poised to lead the next chapter of India’s digital economy with sustained profitability and technology-led financial inclusion.

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