Paytm Q2 FY26 Earnings Results: Net Profit at ₹21 Crore After One-Time Charge; Revenue Jumps 24%

One97 Communications Ltd, the parent company of Paytm, reported a net profit of ₹21 crore for the quarter ended September 2025 (Q2 FY26). The figure came after accounting for a one-time charge of ₹190 crore related to the full impairment of a loan to its joint venture, First Games Technology Pvt. Ltd.

Before the charge, Paytm’s net profit stood at ₹211 crore, showing significant operational improvement compared to the previous year.

Paytm Q2 FY26 Earnings: Strong Revenue and Profit Growth

Paytm’s operating revenue surged 24% year-on-year to ₹2,061 crore, supported by growth in merchant subscriptions, higher payment volumes, and financial services expansion.

• EBITDA grew to ₹142 crore with a 7% margin, driven by operating leverage.
• Contribution profit rose 35% YoY to ₹1,207 crore, with margins at 59%, aided by higher net payment revenue and reduced expenses.
• The company ended the quarter with a cash balance of ₹13,068 crore, giving it strong flexibility for future growth.

Payment and Financial Services Drive Growth

Revenue from payment services, including other operating income, increased 25% YoY to ₹1,223 crore, while net payment revenue grew 28% to ₹594 crore. Paytm’s GMV rose 27% to ₹5.67 lakh crore, supported by strong credit card transactions on UPI and growing affordability options such as EMIs.

Merchant subscriptions hit an all-time high of 1.37 crore, up by 25 lakh YoY, reaffirming Paytm’s leadership in the merchant payments space.

Revenue from financial services distribution increased 63% YoY to ₹611 crore, fueled by merchant loan growth and better loan collection for partners.

Cost Control and Operational Efficiency

Paytm’s indirect expenses, including ESOP costs, fell 18% YoY to ₹1,064 crore.
Marketing expenses dropped 42% YoY to ₹72 crore, reflecting better customer retention and improved monetisation. The company stated it would continue investing strategically to expand market share while maintaining spending discipline.

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Outlook and Market Performance

Paytm said its AI-driven strategy and full-stack financial model are helping achieve sustainable profitability and margin improvement.

One 97 Communications share price (NSE: Paytm) was trading 3.5% higher at ₹1,312.40 on November 6, 2025, at 10:18 am IST. The stock opened at ₹1,310 and touched an intraday high of ₹1,322.60, while the day’s low was ₹1,292.70. Paytm’s market capitalisation stands at ₹83,740 crore, with a P/E ratio of 293.77. The stock has a 52-week high of ₹1,323.50 and a 52-week low of ₹651.50.

Conclusion

Paytm’s Q2 FY26 results highlight a strong recovery in profitability and efficient cost management, despite a one-time impairment. With rising GMV, robust financial services growth, and a solid cash position, the company remains well-positioned to sustain long-term growth and profitability in India’s digital payments ecosystem.

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