Paytm shares hit 52-week high as PAT grows for second consecutive quarter; check all Q2 numbers

At 12:25 PM, Paytm shares were trading at ₹1,320.90 apeice on NSE, gaining 4.17%.

During the quarter, Paytm's operating revenue rose 24% year-on-year (YoY) to ₹2,061 crore, driven by continued growth in its payments and financial services businesses.

The company reported a profit after tax (PAT) of ₹211 crore, before a one-time charge for full impairment of a ₹190 crore loan to our JV, First Games Technology Pvt Ltd.

Reported PAT stood at ₹21 crore. The result marks a significant improvement from the previous quarter, underscoring Paytm’s progress towards sustainable profitability.

EBITDA improved to ₹142 crore, with a 7% margin, on account of revenue growth and operating leverage.

Contribution profit grew 35% YoY to ₹1,207 crore, with a healthy 59% margin, driven by higher net payment margins and an increased share of financial services revenue.

Paytm’s payment services revenue rose 25% YoY to ₹1,223 crore, while net payment revenue increased 28% to ₹594 crore.

Gross Merchandise Value (GMV) surged 27% YoY to ₹5.67 lakh crore, supported by improved processing margins on account of higher growth of credit cards on UPI and affordability offerings (such as EMI).

The company’s merchant ecosystem continued to expand, with subscriptions reaching an all-time high of 1.37 crore, up 25 lakh YoY, reinforcing Paytm’s leadership in omni-channel merchant payments.

Its revenue from the distribution of financial services jumped 63% YoY to ₹611 crore, led by robust merchant loan disbursements and improved collection performance experience for lending partners.

Over 6.5 lakh consumers availed Paytm’s financial services during the quarter, reflecting growing adoption across its ecosystem.

On the operational front, indirect expenses declined 18% year-on-year and 1% quarter-on-quarter at ₹1,064 crore. Marketing costs for consumer acquisition decreased 42% year-on-year, reflecting stronger retention cohorts and improved monetisation.

The company said it will continue to invest strategically to further drive market share gains while maintaining a disciplined approach to spending.

Other development

Paytm owner One 97 Communications on Wednesday said it will deploy Groq AI technology to build high-performance AI models that enhance transaction processing, risk assessment, fraud detection, and customer engagement across its platform.

Founded by a former Google engineer, Jonathan Ross, US-based Groq specialises in ultra-fast AI chips called language processing units.

"Paytm (One 97 Communications Limited)...announced a partnership with Groq, the US-based leader in real-time AI inference, to bring fast, intelligent, and cost-efficient AI to its platform. Under this collaboration, Paytm and its associate entities will deploy GroqCloud, powered by Groq’s purpose-built LPU, to achieve significantly faster, more cost-efficient and scalable AI inference compared to conventional GPU-based systems,” the statement said.