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Paytm reports strong growth despite decline in profit

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Paytm reports strong growth despite decline in profit

in Data Story
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Paytm reports strong growth despite decline in profit
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Athira Sethu

Kochi, 5 Nov 2025

Paytm, or One97 Communications Ltd, said operating revenue jumped 24% for Q2 FY26 to Rs 2,061 crore. Despite strong growth in its payments and financial services businesses, the net profit of the company plunged 98% YoY due to a one-time gain in the same period a year ago and an impairment loss related to its gaming joint venture. Here’s a simplified breakdown of Paytm’s performance for the quarter ended September 2025.

Financial Highlights

MetricQ2 FY26 ActualQ2 FY25 ActualYoY Change
Revenue from OperationsRs 2,061 croreRs 1,659 crore+24%
Total RevenueRs 2,283 croreNot provided–
Net ProfitRs 21 croreRs 930 crore-98%

Revenue Breakdown

SegmentQ2 FY26 ActualYoY Growth
Payment RevenueRs 1,146 crore+21%
Financial Services RevenueRs 611 crore+63%
Other Non-Operating IncomeRs 222 crore–

Expenditures

CategoryQ2 FY26 Actual% of Total Expenditure
Employee BenefitsRs 663 crore32%
Payment Processing ChargesRs 629 crore–
Total ExpenditureRs 2,062 crore–

Exceptional Charge

ChargeAmountReason
Impairment LossRs 190 croreGaming JV impairment (First Games Technology) due to new gaming regulations

Cash and Assets

ItemAmount
Cash & Cash EquivalentsRs 1,835 crore
Total AssetsRs 22,537 crore

Strategic Investment

InvestmentAmountPurpose
Investment in PPSLRs 2,250 croreStrengthen Paytm Payments Services Ltd

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