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 Limited , the parent company of Paytm, has reported a consolidated net profit of ₹21.00 crores for the quarter ended September 30, marking a 98% decline from ₹928.00 crores in the same period last year. The company's revenue from operations grew by 24% year-over-year to ₹2,061.00 crores, driven by increased subscription merchants, higher payments GMV, and growth in financial services distribution.

Financial Performance Highlights

Contribution Profit margin stood at 59%. The company's growth was primarily driven by its payments and financial services segments, with the financial services segment showing particularly strong performance led by merchant loan distribution and enhanced collection performance.

Subsidiary Investment Completed

On December 12, 2025, One 97 Communications completed the additional investment of ₹2,250 crores in its wholly owned subsidiary, Paytm Payments Services Limited, through subscription to its Rights Issue of Equity Shares. This investment, previously approved by the board, aims to strengthen PPSL's net worth, fund acquisition of offline merchant payment business, support working capital needs, and maintain leadership in merchant payments business.

Corporate Developments

Exceptional Items Impact

The significant decline in profit was attributed to a one-time charge of ₹190.00 crores for full impairment of a loan to joint venture First Games Technology. Without this charge, the profit would have been ₹211.00 crores.

Strategic Focus Areas

One 97 Communications outlined four focus areas for future growth: expanding merchant leadership, growing financial services distribution, driving AI-first innovation, and evaluating new international markets as a long-term growth driver, expected to contribute meaningfully after 2-3 years.