One 97 Communications Limited (Paytm) has released its financial results for the second quarter of fiscal year 2026, showcasing robust growth and improved profitability. The company reported a 24% year-over-year increase in revenue and achieved EBITDA profitability, marking a significant milestone in its financial performance.

Key Financial Highlights

• Revenue Growth: Paytm's operating revenue grew by 24% year-over-year to ₹2,061.00 crore in Q2 FY 2026. Excluding revenue from the entertainment business in the previous period, the growth was even stronger at 27% YoY.

• EBITDA Profitability: The company achieved an EBITDA of ₹142.00 crore with a margin of 7%, compared to an EBITDA loss of ₹404.00 crore in the same quarter last year.

• Contribution Profit: Contribution profit increased by 35% YoY to ₹1,207.00 crore, with a contribution margin of 59%, up 5 percentage points YoY.

• Net Profit: Paytm reported a profit after tax (PAT) of ₹21.00 crore for Q2 FY 2026, a significant improvement from a loss of ₹415.00 crore in Q2 FY 2025.

Segment Performance

Payment Services

• Net payment revenue grew by 28% YoY to ₹594.00 crore.
• Gross Merchandise Value (GMV) increased by 27% YoY to ₹5.67 lakh crore.
• Merchant subscriptions reached 1.37 crore, adding 25 lakh subscriptions YoY.

Financial Services Distribution

• Revenue from distribution of financial services surged by 63% YoY to ₹611.00 crore.
• The number of loans distributed grew, with merchant loan distribution showing robust momentum.

User Engagement

• Monthly Transacting Users (MTU) reached 7.5 crore, up by 36 lakh YoY.

Strategic Developments

Paytm continues to focus on expanding its leadership in merchant payments, growing its financial services distribution, and enhancing its UPI payment consumer acquisition. The company is also exploring international expansion as a long-term growth driver.

Management Commentary

Vijay Shekhar Sharma, Chairman, Managing Director, and CEO of Paytm, stated, "Our Q2 results demonstrate the strength of our business model and our focus on profitability. We are seeing encouraging signs of user growth and retention, resulting in consistent market share gains."

Outlook

With a cash balance of ₹13,068.00 crore, Paytm is well-positioned to capitalize on growth opportunities. The company's focus on AI-led innovations and operational efficiencies is expected to drive further improvements in profitability and market share.

Note: All figures are in Indian Rupees (INR) and comparisons are made on a year-over-year basis unless otherwise stated.

One 97 Communications , the parent company of Paytm, has completed the acquisition of majority stakes in two of its subsidiaries, marking a significant step in simplifying its group structure. The company, in a regulatory filing, announced that it has acquired the remaining 51% stake in both Paytm Intelligence Limited and Paytm Life Insurance Limited.

Key Highlights of the Acquisition

• Paytm Intelligence Limited: One 97 Communications acquired a 51% stake from VSS Holdings Private Limited, which is wholly owned by Vijay Shekhar Sharma.
• Paytm Life Insurance Limited: The company purchased a 51% stake directly from Vijay Shekhar Sharma.

Implications of the Acquisition

This strategic move has transformed both entities into wholly-owned subsidiaries of One 97 Communications. The acquisition aligns with the company's previously announced plans to streamline its group structure, potentially leading to more efficient operations and clearer corporate governance.

Transaction Details

This restructuring may signal One 97 Communications' intent to consolidate its operations and potentially streamline decision-making processes across its various business verticals. As the fintech landscape continues to evolve, such strategic moves could position the company to respond more effectively to market changes and regulatory requirements.

Investors and market watchers will likely keep a close eye on how this consolidation impacts the company's operational efficiency and financial performance in the coming quarters.