Paytm Profits Explode 10-Fold to ₹225 Crore in Q2 FY27
Paytm reports a massive 10-fold profit surge and 28% revenue growth in Q2 FY27, marking its sixth consecutive profitable quarter.
In a stunning financial turnaround, One 97 Communications Ltd, popularly known as Paytm, has announced its Q2 FY27 results, revealing a massive surge in profitability. The company reported a profit after tax (PAT) of ₹225 crore for the September quarter, marking a staggering 10-fold increase compared to the ₹21 crore earned during the same period last year.
Revenue and EBITDA Hit New Milestones
The growth wasn't limited to the bottom line. Paytm's revenue witnessed a robust climb of 28% year-on-year, reaching ₹2,648 crore. The company's operational efficiency is further highlighted by its Earnings before interest, tax, depreciation, and amortisation (EBITDA), which skyrocketed by 90% to hit ₹270 crore—the highest ever recorded for a single quarter by the firm.
For the first time, the company's EBITDA margin has entered double digits, expanding to 10%. Interestingly, when excluding the Payments Infrastructure Development Fund (PIDF) incentive, the underlying growth appears even more aggressive, with operating revenue growing by 33% and EBITDA nearly quadrupling.
The AI Edge and Operational Efficiency
A significant driver behind these numbers has been the integration of Artificial Intelligence. Paytm stated that AI-led efficiencies played a crucial role in slashing indirect expenses. These expenses, as a share of total revenue, dropped to 46% from 52% in the previous year, allowing the company to lean out its operations while scaling up.
Dominating the UPI and Merchant Landscape
Paytm continues to claw back and expand its footprint in the competitive digital payments space. The company reported that its UPI gross transaction value (GTV) is growing at more than double the overall industry growth rate.
Merchant Growth and Retention
- Subscription Base: The number of merchants on subscription plans has reached 1.64 crore, adding 27 lakh new merchants over the past year.
- Revenue per Merchant: High levels of engagement and retention, coupled with loan distribution, have led to increased revenue generation per merchant.
- Payment Services: Revenue from payment services rose 25% YoY to ₹1,434 crore.
Consumer Traction
On the consumer side, Paytm is focusing heavily on its monetisable user base. The company has recorded its sixth consecutive quarter of market share gains, with monthly transacting users increasing by 1 crore year-on-year to reach a total of 8.5 crore—the biggest jump in nearly three years.
Financial Services: The New Growth Engine
While payments remain the core, the distribution of financial services has emerged as a powerhouse for revenue. This segment saw a 49% YoY increase, bringing in ₹912 crore. This growth was fueled by several key factors:
- Loan Distribution: Accelerating growth in merchant loan distribution and personal loans, alongside Paytm Postpaid.
- Wealth Products: Improved monetisation in equity broking and wealth products, specifically through Paytm Gold and Margin Trade Funding (MTF).
- Customer Loyalty: Repeat borrowers now account for more than half of all merchant loan disbursements.
- Client Base: Key financial services customers grew by 35% YoY to reach 8.8 lakh.
This performance marks Paytm's sixth consecutive profitable quarter, signaling a period of sustained momentum driven by expanded monetisation, AI adoption, and a strengthening grip on both merchant and consumer markets.