Paytm Q2 results: Revenue jumps 28% YoY and net profit rises to ₹225 crore; EBITDA jumps 90% YoY

Shares of One97 Communications, the parent company of the leading fintech platform Paytm, will remain in focus on Tuesday after the company announced stellar quarterly earnings. The company’s net profit posted multi-fold growth in Q2 of FY27, partly because of the previous year’s exceptional loss. However, on other key parameters, the company continued to deliver strong growth on other key metrics.

Paytm Q2FY27 results

The company’s reported topline growth showed 28% YoY growth in revenue at ₹2,648 crore as against ₹2061 crore for the same period last year. However, after excluding the PIDF (Payments Infrastructure Development Fund) incentive delivered in the previous year, the comparable revenue growth stood at 33% YoY at ₹2,636 crore as compared to ₹1,987 crore.

PIDF incentive was announced by the Reserve Bank of India to encourage banks and non-banks to deploy digital payments infrastructure in smaller towns, rural areas, and underserved areas. The scheme was discontinued in December 2025.

Consequent to the topline growth, the company also improved its performance at the operational level. The EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) for the quarter ended September 2026 jumped nearly 90% to ₹270 crore as compared to ₹143 crore in the same period last year.

Similarly, the operating margin improved from 7% in Q2FY26 to 10% in Q2FY27. At the comparable level (excluding PIDF impact), the EBITDA jumped 279% YoY to ₹258 crore as compared to ₹68 crore, and the EBITDA margin expanded from 3% to 10% over the same period.

At the bottom-line level, the reported net profit for the quarter jumped 971% YoY to ₹225 crore as compared to ₹21 crore in the same period last year. However, the September 2025 quarter had ₹190 crore in exceptional expense as a loan provided to a JV. After adjusting for the exceptional gains, the net profit jumped ~30% YoY.

Paytm share price

Paytm share price has outperformed the broader market weak sentiment to deliver 28% returns in 2026 on a YTD and trailing twelve month basis.

Other key highlights

Outlook

After accounting for higher costs for its loan distribution business under the DLG model (Default Loan Guarantee), the contribution margin is expected to decline. Besides this, higher expenses on card processing in the festive season could also impact the contribution margin in Q3 FY27. However, the operating margins are expected to improve further.