New Delhi, Nov 4 Leading payments and financial services provider Paytm on Tuesday announced its financial results for the quarter ending September 30 (Q2 FY26), reporting continued improvement across all profitability metrics.
The company’s operating revenue grew 24 per cent (year-on-year) to Rs 2,061 crore, led by increase in subscription merchants, higher payments GMV, and growth in distribution of financial services.
EBITDA improved to Rs 142 crore at a 7 per cent margin, reflecting AI-led operating leverage, continued discipline on costs, and early festive season momentum.
Paytm reported a Profit After Tax (PAT) of Rs 21 crore, which includes a one-time charge of Rs 190 crore for full impairment of a shareholder loan.
Excluding this, PAT improved to Rs 211 crore, highlighting the company’s underlying strength and efficient execution in a challenging macro environment.
Contribution profit rose 35 per cent year-on-year to Rs 1,207 crore, with margins expanding to 59 per cent, driven by improved net payment revenue, a higher share of financial services revenue, and lower direct expenses.
Paytm’s cash balance stood at Rs 13,068 crore, providing ample capital flexibility to invest in merchant expansion, financial services distribution, and AI-driven innovation.
Within its payments business, revenue, including other operating income, grew 25 per cent YoY to Rs 1,223 crore, as the company deepened its leadership across India’s MSMEs and enterprises.
Gross Merchandise Value (GMV) climbed 27 per cent YoY to Rs 5.67 lakh crore, while merchant subscriptions reached 1.37 crore, up by 25 lakh YoY, reaffirming Paytm’s leadership in omni-channel merchant payments.
The launch of India’s first AI Soundbox during the quarter reinforced Paytm’s AI-first vision.
At the same time, Paytm’s cost structure became leaner and more efficient, with indirect expenses down 18 per cent YoY.
Marketing costs declined 43 per cent YoY, even as Paytm expanded its merchant base and strengthened its presence in tier 2 and 3 cities, according to the company.
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