Paytm Q2 Results: Profit at ₹225 Crore, Revenue Up 28% (Oct 26, 2026)

Paytm Q2 results came out on Monday, October 26, 2026, and the headline is hard to miss: One 97 Communications posted a consolidated profit after tax of ₹225 crore for the July-September quarter, against just ₹21 crore a year ago. Revenue from operations rose 28% to ₹2,648 crore. Before anyone gets carried away by a ten-fold jump, though, the base needs a closer look.

Paytm Q2 results: the key numbers

Here is what the company’s Q2 FY27 earnings release and the reviewed financial results show for the quarter ended September 30, 2026:

• Revenue from operations: ₹2,648 crore, up 28% from ₹2,061 crore a year earlier and up 8% from ₹2,448 crore in the June quarter.
• EBITDA: ₹270 crore, up 90% from ₹142 crore a year ago and 33% from ₹203 crore last quarter. That works out to a margin of about 10.2% of revenue.
• Profit after tax: ₹225 crore, versus ₹21 crore a year ago and ₹220 crore in Q1. CNBC-TV18’s results coverage puts the profit attributable to shareholders at ₹226 crore.
• Basic EPS: ₹3.52, against ₹0.33 in the same quarter last year.

Why the year-on-year jump looks bigger than it is

Last year’s September quarter carried ₹190 crore of exceptional items. Strip those out on both sides and profit before exceptional items went from ₹211 crore to ₹229 crore, a rise of about 9%. Still growth, just not the 971% the reported line suggests.

Tax also took a bite. Income tax expense was ₹67 crore, up from ₹27 crore in Q1. The company says ₹34 crore of that was an additional deferred tax charge after it finished assessing tax on interest income at one subsidiary; without it, tax would have been ₹33 crore. Other income, mostly interest on its cash pile, slipped to ₹182 crore from ₹222 crore a year ago.

There is a flattering effect on the other side too. The year-ago quarter included ₹74 crore of PIDF incentives (the Payments Infrastructure Development Fund), which ended in December 2025; this quarter had ₹12 crore. Paytm’s own comparable figures, which exclude that incentive, show revenue up 33% and EBITDA rising from ₹68 crore to ₹258 crore.

What drove the quarter

The operating metrics were solid. Merchant GMV grew 26% to ₹7.1 lakh crore, and device subscriptions reached 1.64 crore merchants, 27 lakh more than a year ago. Monthly transacting users rose by 1 crore to 8.5 crore. Revenue from distributing financial services, mainly loans, climbed 49% to ₹912 crore. Total indirect expenses fell to 46% of revenue from 52% a year ago.

The UPI MDR angle, and what to watch next

The bit the market will chew on is UPI pricing. Paytm says NPCI has notified a merchant discount rate framework for UPI, with a proposed cap of 0.4% on select payments above ₹2,000. On its current mix, the company expects that to add roughly 2.5 basis points to a payment processing margin that is already above 4 basis points, settling over two to three quarters after rollout.

For Q3, management has flagged a lower contribution margin because of materially higher default loss guarantee costs and festive-season effects, while still expecting EBITDA to improve. It is also sitting on ₹13,617 crore of cash and says it won’t deploy it just because it has it.

Our read: the core business is growing faster than costs, but the clean profit growth is closer to high single digits than the headline. If you track result season, our guide to analysing quarterly results walks through separating exceptional items, and the EBIT margin explainer covers why margins matter more than headline profit. The full list of this week’s reporters is in our Q2 results calendar.

Sources

• One 97 Communications: Q2 FY 2027 Earnings Release (Oct 26, 2026)
• One 97 Communications: Unaudited Financial Results for Q2 and H1 FY 2027
• CNBC-TV18: Q2 results live updates, Oct 26, 2026

Disclaimer: This article is for information only and is not investment advice. Please consult a SEBI-registered adviser before making any investment decision.