Paytm has solidified its financial turnaround, reporting its third consecutive profitable quarter as of the December 2025 period (Q3 FY26). The company successfully transitioned from a loss-making phase to a steady profit trajectory, driven by robust growth in core payments and financial services. **Key Financial Milestones** For Q3 FY26, Paytm reported a Net Profit (PAT) of **225 crore**, a significant reversal from the **208 crore loss** recorded in the same period the previous year. Operating revenue rose **20% year-on-year** to reach **2,194 crore**. The company’s EBITDA (before ESOP) surged to **156 crore**, reflecting a 7% margin and showcasing strong operational leverage. **Core Business Performance** The payments division remains the primary engine of growth, with revenue from payment services climbing **21% to 1,284 crore**. Merchant adoption continues to scale rapidly. The subscriber base for payment devices reached **1.44 crore**, adding **27 lakh** new devices over the past year. Total Gross Merchandise Value (GMV) processed through the platform remains high, with UPI consumer market share gaining for three consecutive quarters. Consumer UPI GMV specifically grew **35%** over the last nine months, doubling the industry average growth rate of **16%**. **Financial Services and Lending** The distribution of financial services, including merchant loans and wealth products, saw a revenue jump of **34%**, reaching **672 crore**. The number of customers availing these services increased to **7.1 lakh**, up from **5.9 lakh** a year ago. Despite regulatory shifts in certain lending segments, the company has maintained healthy contribution margins, which currently stand at **57%**. **AI-First Strategy and Innovation** Paytm is pivoting toward an "AI-first" operational model to drive efficiency. The company recently launched a redesigned flagship app featuring over **15 AI-driven tools**. New features include "Paytm Checkin" for travel planning and AI-powered expense tags that automatically categorize monthly spending. On the merchant side, AI is being used for real-time risk monitoring and automated onboarding, helping reduce indirect expenses, which fell **8%** this quarter to **1,092 crore**. **Market Position and Outlook** As of early February 2026, Paytm’s market capitalization stands at approximately **74,122 crore**. The stock has demonstrated a recovery of over **49%** over the last 12 months, reflecting renewed investor confidence. The company maintains a strong liquidity position with a cash balance of **12,882 crore**. This capital provides the flexibility to continue investing in new growth drivers while navigating the evolving regulatory landscape for digital payments in India.