Paytm Q2 Results | Net profit at ₹21 crore after one-time impairment; revenue surges 24%

Paytm brand owner One 97 Communications Ltd on Tuesday (November 4) reported a net profit of ₹211 crore for the quarter ended September 2025 (Q2 FY26), before accounting for a one-time charge of ₹190 crore for full impairment of a loan to its joint venture, First Games Technology Private Ltd. After this charge, the reported profit after tax stood at ₹21 crore.

The company’s operating revenue rose 24% year-on-year to ₹2,061 crore, driven by growth in subscription-paying merchants, higher payments gross

merchandise value (GMV), and expansion in financial services distribution.

EBITDA surged to ₹142 crore with a 7% margin, supported by revenue growth and operating leverage. Contribution profit rose 35% year-on-year to ₹1,207 crore, with a margin of 59%, aided by improved net payment revenue, a higher share of financial services revenue, and lower DLG expenses. Paytm’s cash balance stood at ₹13,068 crore, providing strong capital flexibility to scale its business.

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Revenue from payment services, including other operating income, grew 25% year-on-year to ₹1,223 crore, with net payment revenue up 28% to ₹594 crore. The company’s GMV rose 27% to ₹5.67 lakh crore, backed by higher payment processing margins from growth in credit card transactions on UPI and affordability offerings such as EMI.

Merchant subscriptions reached an all-time high of 1.37 crore, up by 25 lakh year-on-year, reinforcing Paytm’s leadership in merchant payments. Revenue from the distribution of financial services rose 63% to ₹611 crore, driven by continued expansion in merchant loan distribution and improved collection performance for lending partners. About 6.5 lakh consumers and merchants availed Paytm’s financial services during the quarter.

Indirect expenses, including ESOP costs, fell 18% year-on-year and 1% quarter-on-quarter to ₹1,064 crore. Marketing costs for consumer acquisition declined 42% year-on-year to ₹72 crore, reflecting improved retention cohorts and enhanced monetisation. The company said it remains committed to investing strategically to drive market share gains while maintaining spending discipline.

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Paytm said its robust business model and AI-led opportunities continue to support profitable growth and margin improvement, underscoring its position as a full-stack merchant payments and financial services distribution leader.

Shares of One97 Communications (Paytm) Ltd ended at ₹1,269.00, down by ₹5.80, or 0.45%, on the BSE.