One 97 Communications Ltd, the parent company of Paytm, reported a sharp rise in profit in its Q2 results for the September quarter of FY27. Profit after tax (PAT) surged to ₹225 crore from ₹21 crore a year earlier, marking an increase of more than 10 times. Revenue rose 28% year-over-year (YoY) to ₹2,648 crore.
Earnings before interest, tax, depreciation and amortization (EBITDA) climbed 90% YoY to ₹270 crore, the company's highest quarterly figure. Its EBITDA margin reached 10% for the first time. Paytm also reported stronger underlying growth after excluding incentives from the Payments Infrastructure Development Fund (PIDF), which it received until December 2025.
Key Highlights
- Profit after tax rises to ₹225 crore from ₹21 crore a year ago.
- EBITDA jumps 90% YoY to ₹270 crore, with a 10% margin.
- Financial services distribution revenue grows 49% to ₹912 crore.
Paytm Q2 Results Show Growth in Payments Business
Payments remained a key contributor to Paytm's performance. Revenue from payment services increased 25% YoY to ₹1,434 crore. On a comparable basis, net payment revenue grew 21% to ₹644 crore.
The company continued to gain market share in consumer Unified Payments Interface (UPI) transactions. Paytm said its UPI gross transaction value (GTV) grew at more than twice the industry's rate. It also recorded its sixth consecutive quarter of market share gains.
Paytm's merchant network continued to expand. Merchants using subscription plans reached 1.64 crore after the addition of 27 lakh merchants year-over-year. The company said strong merchant retention, engagement, and loan distribution were helping increase revenue per merchant.
On the consumer side, Paytm is focusing on users who contribute to revenue. Monthly transacting users increased by 1 crore from a year earlier to 8.5 crore, marking the highest addition in nearly three years.
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Financial Services and AI Support Paytm's Growth
Revenue from the distribution of financial services rose 49% YoY to ₹912 crore. Growth was supported by merchant loans, personal loans, and Paytm Postpaid. Improved monetization in equity broking and wealth products, particularly Margin Trade Funding (MTF) and Paytm Gold, also contributed.
Repeat borrowers accounted for more than half of merchant loan disbursements. Meanwhile, the number of key financial services customers grew 35% YoY to 8.8 lakh.
Paytm said artificial intelligence (AI)-led efficiencies helped lower indirect expenses as a share of revenue to 46%, compared with 52% a year earlier. The company attributed its performance to sustained business momentum, higher monetization, and wider AI adoption across its merchant and consumer operations.
The latest Q2 results mark Paytm's sixth consecutive profitable quarter. The company has continued to expand its payments and financial services businesses while improving operating efficiency.
