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New Delhi: One 97 Communications, which operates Paytm, reported a 12.4% decline in revenue from marketing services to Rs 247 crore in Q1 FY2026. In the corresponding quarter of the previous year (Q1 FY2025), the company had recorded Rs 282 crore from marketing services.
Paytm stated, “In our advertising business, we are focusing on delivering higher ROI for advertisers by using AI for sharper customer cohorting and building deeper relationships with advertisers.”
It added, “We have partnered with various financial institutions and offer a range of marketing services to them, such as co-branded credit cards, advertising, and selling their products.”
On a quarter-on-quarter basis, marketing services revenue also declined by 7.5%, compared to Rs 267 crore reported in the March quarter of FY2025.
The company reduced its advertising expenses by more than half compared to the same period last year. According to stock exchange filings, marketing and promotional expenses dropped from Rs 221.4 crore in Q1 FY2025 to Rs 99.8 crore in the quarter ending June 30, 2025.
On a sequential basis, advertising expenses also declined from Rs 142.7 crore in the quarter ending March 31, 2025.
Paytm said that its marketing costs for consumer acquisition fell to Rs 62 crore, “as we are prioritising innovative payments and financial services products to increase retention. We are seeing early signs of success through market share gains despite low marketing spending,” it added.
The fintech firm reported its first-ever consolidated net profit of Rs 122.5 crore for the quarter ended June 2025. This marks a significant turnaround from the net loss of Rs 840 crore reported in the same quarter last year.
Consolidated revenue from operations during the quarter increased by approximately 28% to Rs 1,917.5 crore, up from Rs 1,501.6 crore in the June 2024 quarter.
One 97 Communications registered a healthy profit of Rs 122.5 crore, compared to a loss of Rs 840 crore in the corresponding quarter of the previous financial year.