Vijay Shekhar Sharma’s Resilience Powers Paytm’s Rise as India’s Merchant Payments Champion
Vijay Shekhar Sharma’s leadership drives Paytm to full profitability, solidifying its position as India’s top merchant payments platform.
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Under Vijay Shekhar Sharma’s determined leadership, Paytm (One 97 Communications Ltd.) has achieved full profitability, firmly positioning itself as India’s leading merchant payments solution provider for MSMEs and larger enterprises.
Strong Q1 FY 26 Financials
For the June quarter, Paytm reported:
- A Profit After Tax of ₹123 crore, achieving profitability across all key metrics.
- EBITDA of ₹72 crore, reflecting a 4% margin.
- Operating revenue surged 28% year-on-year to ₹1,918 crore, driven by increased merchant subscriptions, higher Gross Merchandise Value (GMV), and financial services distribution.
Why It Matters
These results mark the culmination of Sharma’s long-held ambition to build a merchant-first, tech-driven payments and credit platform. Contribution profit jumped 52% YoY to ₹1,151 crore, with margins rising to 60% due to healthier payment net margins, increasing financial services revenue share, and tighter cost control.
Merchant Expansion & Platform Traction
- Active subscription-based merchants grew to 1.30 crore, a year-on-year addition of 21 lakh.
- GMV climbed 27% YoY to ₹5.39 lakh crore.
- Monthly transacting users reached 7.4 crore.
- Financial services revenue doubled to ₹561 crore, supported by repeat borrowers for merchant loans.
- Cash reserves stood at ₹12,872 crore, highlighting robust capitalization for further growth.
Vision & Strategy Moving Forward
Over the past 15 years, under Sharma’s stewardship, Paytm has built India’s first AI-enabled omni-channel payment infrastructure. With AI-led tools, a broader merchant servicing network, and a focus on inclusion, Paytm is set to unlock services for an addressable base of over 10 crore merchants—anticipating 40–50% of them will adopt subscription-based business tools over time.
Why This Story Matters
- Leadership narrative: This progress stems from Sharma’s resilience through challenges like investor skepticism, financial constraints, and competitive pressure.
- Impact on MSMEs: Paytm’s expansion powers digital financial inclusion across urban and rural India.
- Long-term profitability journey: The milestone underscores that dedication to a long-term platform model can deliver sustainable value.
