Paytm’s parent company, One 97 Communications, reported a more than tenfold jump in net profit to ₹225 crore for the July-September quarter of FY27, compared with ₹21 crore in the corresponding quarter last year. The digital payments company also recorded a 28% year-on-year increase in operating revenue to ₹2,648 crore, supported by growth across its merchant payments and consumer businesses.
The results mark Paytm’s sixth consecutive profitable quarter on a reported basis, reflecting stronger operating performance, improved monetisation and the growing contribution of artificial intelligence (AI) to its business operations.
Paytm Reports Record EBITDA of ₹270 Crore
Paytm’s earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 90% year-on-year to a record ₹270 crore during Q2 FY27. Its EBITDA margin reached 10%, entering double-digit territory for the first time.
For the first half of FY27, the company’s net profit more than tripled to ₹445 crore, compared with ₹144 crore in the corresponding period a year earlier.
The improvement in operating profitability indicates that Paytm is generating more earnings from its growing revenue base. The company also reported stronger cost efficiency as it expanded its payments and financial services businesses.
Merchant Payments Business Continues to Grow
Paytm’s payments business remained a major contributor to its performance. Payment services revenue rose 25% year-on-year to ₹1,434 crore, while net payment revenue increased 21% on a comparable basis to ₹644 crore.
The gross merchandise value (GMV) processed through merchants grew 26% to ₹7.1 lakh crore during the quarter.
Paytm also expanded its merchant subscription business, adding 27 lakh subscribers over the past year. Its total number of merchants on subscription plans reached 1.64 crore, supported by demand for its Soundbox payment confirmation devices.
The company said improvements in payment processing margins and increased adoption of higher-margin payment instruments, including credit cards on UPI and Paytm Postpaid, contributed to the performance.
Financial Services Revenue Rises 49%
Revenue from the distribution of financial services increased 49% year-on-year to ₹912 crore.
Growth was supported by merchant loan distribution, personal loans, Paytm Postpaid and improved monetisation of investment-related offerings, including Margin Trade Funding and Paytm Gold.
The number of key financial services customers rose 35% year-on-year to 8.8 lakh. Paytm also reported that repeat borrowers accounted for more than half of merchant loan disbursements during the quarter.
The financial services distribution business provides an additional revenue stream beyond payment processing, allowing Paytm to monetise its relationships with merchants and consumers.
Paytm Gains UPI Market Share for Sixth Consecutive Quarter
Paytm reported that its consumer UPI payment market share increased for the sixth consecutive quarter.
Its UPI transaction value grew 42% year-on-year, more than twice the industry’s growth rate of 19%, according to the company.
Monthly transacting users increased by one crore over the previous year to reach 8.5 crore. Paytm attributed the growth to improvements in its products, customer acquisition, retention and AI-powered personalisation.
Marketing services revenue also increased 26% year-on-year to ₹287 crore, adding to the company’s overall revenue growth.
AI Helps Paytm Improve Cost Efficiency
Artificial intelligence is becoming an increasingly important part of Paytm’s operations. The company said it is using specialised AI models and agents across software development, customer engagement, merchant services, risk management, fraud prevention and collections.
These applications are intended to improve customer targeting, automate routine tasks and increase productivity across business functions.
Paytm reported that indirect expenses as a share of revenue declined to 46% from 52% a year earlier, with AI-led efficiencies contributing to the improvement.
The company has also started offering its AI platform to enterprise merchants, extending its technology capabilities beyond its core payments operations.
Paytm’s Cash Balance Reaches ₹13,617 Crore
Paytm’s cash balance stood at ₹13,617 crore as of September 2026, providing financial flexibility for future business expansion and investment.
The company plans to continue growing its merchant payments operations, financial services distribution and consumer monetisation while using technology to improve operating leverage.
Although the latest results show stronger profitability and revenue growth, Paytm’s future performance will depend on sustaining customer growth, expanding merchant relationships and managing competition in India’s digital payments market.
The Q2 FY27 results highlight Paytm’s progress in building a more diversified financial technology business, with payments, lending distribution and AI-driven efficiency contributing to its improving financial performance.
