Paytm Posts Profit After Tax of 225 Crore Rupees for Sixth Consecutive Quarter
Key Facts
One 97 Communications, which operates the Paytm platform, reported profit after tax of 225 crore rupees for the quarter ended September, compared with 21 crore rupees a year earlier, marking its sixth consecutive profitable quarter. Operating revenue rose 28% year on year to 2,648 crore rupees, according to the company’s second-quarter results for fiscal 2027. The results came as operating profitability improved alongside growth in payments and financial services. EBITDA surged 90% to a record 270 crore rupees. EBITDA margin reached 10% for the first time, the company said.
For the first half of fiscal 2027, profit after tax rose to 445 crore rupees from 144 crore rupees in the year-earlier period, according to figures reported from the company. This reflects continued profitability in the first and second quarters, alongside revenue growth and an improved operating metric. In the quarter ended September, revenue from payment services rose 25% to 1,434 crore rupees. Net payment revenue also increased 21% on a comparable basis to 644 crore rupees. The figures show payments’ contribution to revenue growth, alongside expansion in financial product distribution.
The value of Paytm’s UPI transactions grew 42% during the quarter, outpacing industry growth of 19%, Business Standard reported, citing PTI. The company said it gained market share in consumer payments for the sixth consecutive quarter. On usage, monthly active users increased by 1 crore year on year to 8.5 crore. Reports described the increase as the largest in about 3 years. The company attributed user growth to product improvements, user acquisition and retention, as well as AI-powered personalization.
Gross merchandise value at merchants rose 26% year on year to 7.1 trillion rupees in the second quarter of fiscal 2027. The number of merchants on subscription plans reached 1.64 crore, after adding 27 lakh merchants over the year, Paytm said. In financial services, distribution revenue increased 49% to 912 crore rupees. The company said growth was driven by faster distribution of merchant loans, growth in personal loans and the Paytm Postpaid service. Improved monetization from margin trading finance and Paytm Gold also contributed to the performance of the business.
Revenue expansion coincided with a decline in indirect expenses as a share of revenue to 46%, from 52% a year earlier. Paytm said AI-driven efficiency gains contributed to the decline. On a comparable basis excluding incentives from the Payments Infrastructure Development Fund, which ended in December 2025, operating revenue grew 33% year on year. On the same basis, EBITDA nearly quadrupled. Its margin widened from 3% in the second quarter of fiscal 2026 to 10% in the second quarter of fiscal 2027, the company said.
In the market, One 97 Communications shares rose 2.39% to close at 1,654.70 rupees in the October 26, 2026, session, compared with a 0.68% gain in the Nifty 50, according to NDTV Profit. This reflects a move opposite to the decline cited in the initial draft. Paytm said its cash balance stood at 13,617 crore rupees in September 2026, providing flexibility to support business expansion, according to the company. The company expects continued revenue growth and wider margins to support long-term profit growth. It forecast a decline in contribution margin in the December quarter of fiscal 2027 due to higher costs for credit loss guarantees and seasonal factors, while EBITDA continues to improve.
Paytm scheduled its second-quarter fiscal 2027 results call for October 27, 2026, according to its investor relations page. The call is expected to give the company an opportunity to present quarterly results and discuss the development of its business with investors. The date follows the announcement of a sixth consecutive profitable quarter. The results include growth in payments and financial product distribution services, alongside an improved EBITDA margin. They also come as the company expects contribution margin to decline in the December quarter due to higher costs for credit loss guarantees and seasonal factors.