Paytm Q2 profit jumps over 10-fold to Rs 225 crore

One 97 Communications Ltd (Paytm) reported a more than tenfold increase in profit after tax (PAT) to ₹225 crore in the September quarter of FY27, compared with ₹21 crore in the year-ago period, on a reported basis. Revenue for the quarter grew 28% year-on-year to ₹2,648 crore.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) rose 90% year-on-year to ₹270 crore, its highest quarterly level to date. The EBITDA margin expanded to 10%, crossing double digits for the first time. On a comparable basis, after excluding the Payments Infrastructure Development Fund (PIDF) incentive received until December 2025, operating revenue growth stood at 33%, while EBITDA nearly quadrupled.

Paytm attributed part of its improved operating performance to AI-led efficiencies, which helped bring indirect expenses down to 46% of revenue from 52% a year earlier. The company also continued to gain market share in consumer UPI payments, with its UPI gross transaction value (GTV) growing at more than twice the industry rate.

The September quarter marked Paytm's sixth consecutive profitable quarter, supported by continued business momentum, higher monetisation and greater adoption of AI across its merchant and consumer operations.

Payments continued to contribute to growth, with revenue from payment services increasing 25% year-on-year to ₹1,434 crore. Net payment revenue, meanwhile, grew 21% year-on-year on a comparable basis to ₹644 crore.

Paytm's merchant ecosystem also expanded during the quarter. The number of merchants on subscription plans reached 1.64 crore, following the addition of 27 lakh merchants year-on-year. The company said high merchant retention and engagement, along with subsequent loan distribution, were contributing to higher revenue per merchant. In its consumer payments business, Paytm continues to focus on its monetisable user base.

The company also recorded its sixth consecutive quarter of market share gains. Monthly transacting users increased by 1 crore year-on-year to 8.5 crore, marking the highest addition in nearly three years.

Revenue from the distribution of financial services grew 49% year-on-year to ₹912 crore. The increase was driven by faster growth in merchant loan distribution, strong performance in personal loans and Paytm Postpaid, and improved monetisation across equity broking and wealth products, particularly Margin Trade Funding (MTF) and Paytm Gold.

Repeat borrowers accounted for more than half of merchant loan disbursements during the quarter. The number of key financial services customers also rose 35% year-on-year to 8.8 lakh.