Paytm Shares Rise After Q2 Results As Net Profit Jumps 971%, Revenue Grows 28% And EBITDA Margin Expands

Paytm reported consolidated net profit of ₹225 crore for the quarter ended 30 September 2026, compared with ₹21 crore in the corresponding period last year. Profit before exceptional items stood at ₹229 crore, reflecting an improvement in underlying earnings.

Revenue from operations increased 28% year-on-year to ₹2,648 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached ₹270 crore, with its margin widening to 10% from 7% a year earlier.

Financial services continued to expand, with revenue from loan distribution and related offerings rising 49% year-on-year to ₹912 crore. Growth was supported by a wider lending partner network, stronger borrower engagement and technology-led improvements in customer acquisition and servicing.

Paytm Share Price Movement

Paytm shares rose 2% to ₹1,686 on the National Stock Exchange (NSE) on Tuesday following the earnings announcement. The increase in reported profit was partly influenced by exceptional expenses falling to ₹4 crore, against ₹190 crore in the year-ago quarter. However, at 10:07 am the stock had pared its gains and was trading at ₹1,639.20, down 0.93% on NSE India.

UPI Monetisation And Payment Margins

The proposed merchant discount rate (MDR) framework for selected Unified Payments Interface (UPI) merchant transactions could provide an additional revenue stream. Paytm estimates a potential improvement of approximately 2.5 basis points in overall payment processing margin, with the impact expected to stabilise over two to three quarters following implementation.

The company has described this opportunity as supplementary to its existing business model. Merchant payment activity and subscription-based services remain central to its broader monetisation strategy.

AI Investments And Operating Efficiency

Paytm is deploying AI across customer acquisition, fraud prevention, collections and merchant services. Investment in software, cloud infrastructure and data centres is also increasing to support product development and service delivery.

Indirect expenses rose 14% year-on-year, while their share of revenue declined from 52% to 46%. The company reported 8.5 crore monthly transacting users during the quarter, reflecting continued expansion of its consumer platform.

Paytm Q2 FY27: Key Operational Developments

• Merchant network: Registered merchants reached 5.2 crore, up 10% year-on-year.

• Payment activity: Gross merchandise value (GMV) increased 26% to ₹7.1 lakh crore.

• Merchant subscriptions: The number of subscription merchants, including device users, rose 19% to 1.64 crore.

• Consumer transactions: Monthly transacting users increased by one crore compared with the year-ago quarter.

Paytm’s focus remains on expanding financial services distribution, strengthening merchant engagement and using technology to improve efficiency as it develops additional revenue streams.

Source

NSE

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