Paytm profit rises over tenfold in quarter to Rs.225 crore on revenue growth

what happened

Paytm (One 97 Communications) reported its second-quarter FY27 results, with profit after tax rising more than tenfold to Rs.225 crore from Rs.21 crore a year earlier. Revenue grew 28% year on year to Rs.2,648 crore. According to Moody's, EBITDA climbed 90% to Rs.270 crore, its highest quarterly figure ever, and the margin reached double digits for the first time.

Excluding the Payments Infrastructure Development Fund incentive received until December 2025, operating revenue grew 33% and EBITDA nearly quadrupled. The company credited AI-driven efficiencies for cutting indirect expenses to 46% of revenue from 52% a year earlier. Its share of consumer UPI payments kept rising, with UPI gross transaction value growing more than twice as fast as the industry. This was its sixth consecutive profitable quarter.

why it matters

For markets, the report suggests Indian fintech companies can lift profitability through cost control and better monetisation of users, not only through top-line growth. Revenue from financial services rose 49% to Rs.912 crore, pointing to a growing role for lending products and trading on the platform. The results are relevant for assessing the wider Indian payments and lending sector.

market impact

Paytm and Indian fintech: strong profitability supports investor interest in the sector

tags

instruments