Paytm Q2 results for the September quarter of FY27 saw One 97 Communications Ltd report a more than 10-fold surge in profit after tax to ₹225 crore, up from ₹21 crore in the corresponding period of the previous year on a reported basis.
Operating revenue for the quarter rose 28 per cent year-on-year to ₹2,648 crore, powered by steady momentum across both merchant and consumer segments, broader monetisation, and the adoption of artificial intelligence. This marks the sixth consecutive profitable quarter for the company behind the popular digital payments brand.
Ebitda for the September quarter climbed 90 per cent year-on-year to a record ₹270 crore, pushing the Ebitda margin to 10 per cent and reaching double digits for the first time.
Key Points Of Paytm Q2 Results
- Profit after tax jumped over 10-fold to ₹225 crore on a reported basis, marking the sixth straight profitable quarter.
- Operating revenue increased 28 per cent year-on-year to ₹2,648 crore.
- Ebitda reached a record ₹270 crore with the margin expanding to 10 per cent.
- Paytm gained consumer UPI market share for the sixth consecutive quarter, with transaction values growing 42 per cent.
- Cash balance rose to ₹13,617 crore as of September 2026.
Growth In UPI Market Share And User Metrics
Paytm expanded its consumer UPI payment market share for the sixth consecutive quarter. Paytm UPI transaction values recorded a 42 per cent growth during the quarter, more than double the broader industry growth rate of 19 per cent.
Monthly transacting users increased by 1 crore year-on-year to reach 8.5 crore, marking the highest user addition in nearly three years. The expansion was attributed to improved product offerings, stronger customer acquisition and retention, and artificial intelligence-led personalisation.
Payment services revenue went up 25 per cent year-on-year to ₹1,434 crore, while net payment revenue grew 21 per cent year-on-year on a comparable basis to ₹644 crore. Structural improvements in payment processing margins kept the metric comfortably above 4 basis points, supported by high-margin instruments such as credit cards on UPI and Paytm Postpaid.
Financial Services And Merchant Expansion
Revenue from the distribution of financial services recorded a 49 per cent year-on-year increase to ₹912 crore. This growth was driven by accelerated merchant loan distribution, strong expansion in personal loans and Paytm Postpaid, and improved monetisation in Margin Trade Funding and Paytm Gold.
Merchants on subscription plans grew by 27 lakh year-on-year to reach 1.64 crore. Repeat borrowers accounted for more than half of all merchant loan disbursements, while key financial services customers increased by 35 per cent year-on-year to 8.8 lakh.
The company noted that artificial intelligence continues to serve as its operating system. Fine-tuned models and agents have been deployed across consumer, merchant, and engineering operations, alongside risk management, collections, fraud prevention, and personalisation. These operational efficiencies reduced indirect expenses as a share of revenue to 46 per cent from 52 per cent a year ago.
Frequently Asked Questions
What was the net profit of Paytm in Q2 FY27?
Paytm reported an over 10-fold rise in profit after tax to ₹225 crore in the September quarter of fiscal year 2027, compared to ₹21 crore in the same period a year ago on a reported basis.
How much did Paytm operating revenue grow in the September quarter?
Operating revenue for Paytm rose 28 per cent year-on-year to ₹2,648 crore, driven by sustained momentum across merchant and consumer businesses, expanded monetisation, and artificial intelligence adoption.
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