Athira Sethu
Kochi, 27 Oct 2026
One97 Communications, which owns the digital payment gateway Paytm, has seen robust financial performance for its second quarter of FY27. The company saw an increase in revenue, operating performance and substantial improvement in its net profit for the period ending in September 2026.
Paytm’s stock performance will continue to be monitored after the release of its earnings report for the quarter. The company also experienced a rise in merchant payments, along with the addition of new merchants.
Paytm Revenue Up 28%
The digital payments firm saw revenue of ₹2,648 crore for the September 2026 quarter, marking an increase of 28% compared to ₹2,061 crore during the quarter a year ago.
Excluding the PIDF incentive earned in the previous year, the revenue increased by 33% compared to last year to reach ₹2,636 crore compared to ₹1,987 crore.
Payments Infrastructure Development Fund (PIDF) is a fund launched by the Reserve Bank of India for incentivizing digital payments in rural areas, small towns, and those regions where access to banking is low. The program was phased out in December 2025.
Operating Performance Enhances
Another area where Paytm has done well is with respect to improvements in the company’s operating performance. The EBITDA for Paytm grew by almost 90% to reach ₹270 crore in Q2 FY27 from ₹143 crore a year ago.
The operating margin stood at 10% against 7% for the same period.
The EBITDA excluding the PIDF incentive improved by 279% to stand at ₹258 crore against ₹68 crore in the same quarter a year ago. The EBITDA margin too moved up to 10% from 3% in the prior year.
These numbers indicate that the company has managed to improve its capacity to generate revenue from its operations.
Net Profit Rises by 971%
Paytm registered a net profit of ₹225 crore in Q2 FY27 from ₹21 crore in the corresponding quarter a year ago. The growth is 971%.
But the net profit figure for the last year’s quarter had included an exceptional loss of ₹190 crore due to a loan provided to a joint venture. The net profit growth after adjustment for this exception is close to 30%.
Merchant Payment Value and Customer Base Increase
Gross merchant payment value (GMV) by Paytm, which is defined as the amount of money that passes through the merchant network, rose by 26% to ₹7.1 lakh crore from ₹5.7 lakh crore during the same period last year.
The number of registered merchants rose 10% year-on-year to 5.2 crore. The number of registered merchants was 4.7 crore in the previous year.
Its cash balance stood at ₹13,617 crore as of September 2026, against ₹13,068 crore in the previous year.
Paytm Share Price and Future Prospects
The share price of Paytm rose by about 28% in 2026 and within one year, as per reported figures.
In the coming days, Paytm foresees certain stress on its contribution margin due to rise in cost in its loan distribution business and also due to card processing cost during festive seasons.
However, Paytm sees improvement in its operating margins going forward with business growth and better performance.
