Paytm Q2 profit jumps to Rs 225 crore on revenue growth

One 97 Communications, the parent company of Paytm, reported consolidated profit after tax of Rs 225 crore for the September quarter of FY27, compared with Rs 21 crore in the same quarter last year. Paytm Q2 profit rose more than tenfold on a reported basis, while revenue from operations rose 28.5% to Rs 2,648 crore, from Rs 2,061 crore a year earlier. The board approved the results on 26 October 2026.

Paytm Q2 profit was helped by a sharp fall in exceptional charges. The company booked an exceptional charge of Rs 4 crore in the quarter, against Rs 190 crore a year earlier, for writing off obsolete capital work in progress. Profit before exceptional items and tax rose to Rs 296 crore, from Rs 220 crore a year earlier, according to Indian Television.

Paytm Q2 profit and operating earnings

Earnings before interest, tax, depreciation and amortisation rose about 90% to Rs 270 crore in the Paytm Q2 profit report, the highest quarterly figure reported by the company. The operating margin reached 10%, the first time it has crossed into double digits. Total income, including other income of Rs 182 crore, rose to Rs 2,830 crore, from Rs 2,283 crore.

Total expenses rose to Rs 2,531 crore in the Paytm Q2 profit period, from Rs 2,062 crore a year earlier. Payment processing charges rose to Rs 805 crore, from Rs 629 crore. Employee benefits cost rose to Rs 759 crore, from Rs 663 crore. Marketing and promotional spending rose to Rs 194 crore, from Rs 122 crore. Software, cloud and data centre costs rose to Rs 211 crore, from Rs 133 crore.

Paytm Q2 profit from payments and loans

Payment services remained the largest revenue line in the quarterly report, at Rs 1,434 crore, up 25% from a year earlier. Net payment revenue rose 21% on a comparable basis to Rs 644 crore. Revenue from distribution of financial services rose 49% to Rs 912 crore, helped by merchant loan distribution, personal loans and Paytm Postpaid. Marketing services brought in Rs 287 crore.

Monthly transacting users rose by 1 crore from a year earlier to 8.5 crore in the quarter, the largest addition in nearly three years. The company said it gained consumer UPI market share for a sixth straight quarter, with transaction values growing 42%. Cash on hand rose to Rs 13,617 crore at the end of September 2026. This was the sixth straight profitable quarter for the company.

Paytm Q2 profit and UPI charges ahead

Paytm said a merchant discount rate on UPI transactions, expected after Diwali, could add to payment margins. The company put the possible gain at about 2.5 basis points on overall payment processing margin, with the effect settling over two to three quarters after implementation. Brokerages Jefferies, Goldman Sachs and Citi kept buy ratings on the stock after the results, citing revenue growth and better operating performance.

The Paytm Q2 profit report also showed indirect expenses falling as a share of revenue to 46%, from 52% a year earlier, which the company linked to use of artificial intelligence in its operations. Shares fell about 2% after the results were announced on 27 October, even as brokerages kept their positive ratings. The company did not give a profit forecast for the rest of the financial year in the reports published on the results.

Payment services and financial services together made up most of the revenue in the quarter, with payment services at Rs 1,434 crore and financial services at Rs 912 crore. One 97 Communications said its UPI market share rose for a sixth straight quarter, and that UPI market share gain came alongside growth in transaction values. The company runs Paytm as its consumer brand, and One 97 Communications reports its payments and lending distribution lines separately in its filings.