Paytm owner One97 Communications reported a profit after tax of ₹225 crore for the September quarter (Q2 FY27) on Monday, October 26, up from ₹21 crore a year earlier. Operating revenue rose 28% to ₹2,648 crore, and EBITDA reached a record ₹270 crore, a margin of 10%, the first time it has reached double digits.
Financial services distribution grew fastest, with revenue up 49% to ₹912 crore on merchant loans, personal loans, Paytm Postpaid and margin trade funding. Repeat borrowers made up more than half of merchant loan disbursements. Payment services revenue rose more than 25% to ₹1,434 crore, Entrackr reported from the NSE filing, and the company said its payment processing margin is now above 4 basis points, helped by credit cards on UPI. Paytm UPI transaction value grew 42% in the quarter against 19% for the industry, PTI reported.
Excluding the Payments Infrastructure Development Fund incentive that ended in December 2025, operating revenue grew 33% and EBITDA nearly quadrupled, the company said. It credits AI tools with cutting indirect expenses to 46% of revenue, from 52% a year ago.
- Merchant GMV: ₹7.1 lakh crore, up 26%
- Monthly transacting users: 8.5 crore, up 1 crore
- Merchants on subscription plans: 1.64 crore
- Cash balance: ₹13,617 crore at the end of September
Why it matters: Paytm now earns more than a third of its revenue from distributing loans and other financial products, a model in which partner lenders make the loans, so its fastest-growing line depends on how much those lenders choose to disburse. The sixth profitable quarter in a row came before any merchant fee on UPI; if NPCI brings in its deferred MDR on larger merchant payments after Diwali, payment margins could widen further. Marketing spend rose 59% year on year, a sign the company is again paying to win users.
Source: Paytm Q2 FY27 results release; Entrackr; Business Standard (PTI)
Image: Lakshmisreekanth, CC BY-SA 4.0, via Wikimedia Commons
