One 97 Communications (Paytm), India's leading digital payments and financial services company, has announced a strategic partnership with Groq, a U.S.-based leader in real-time AI inference. This collaboration aims to integrate Groq's advanced AI technology into Paytm's platform, potentially revolutionizing the company's payment processing and financial services offerings.

Enhancing Real-Time AI Capabilities

The partnership will see Paytm deploying GroqCloud, powered by Groq's purpose-built LPU (Linear Processing Unit) technology. This integration is expected to deliver significantly faster and more cost-efficient AI inference compared to traditional GPU-based systems. The move aligns with Paytm's ongoing efforts to build high-performance AI models that enhance various aspects of its operations, including:

• Transaction processing
• Risk assessment
• Fraud detection
• Customer engagement

Boosting Platform Intelligence

Narendra Singh Yadav, Chief Business Officer at Paytm, emphasized the significance of this partnership, stating, "We have been steadily advancing our AI capabilities to make payments faster, more reliable, and deeply intelligent. This collaboration with Groq strengthens our technology foundation by enabling real-time AI inference at scale."

The integration of Groq's technology is expected to support Paytm in several key areas:

1. Faster transaction processing
2. Enhanced risk modeling
3. Improved fraud prevention mechanisms
4. More personalized customer experiences

Aligning with Global AI Trends

Scott Albin, GM of APAC for Groq, expressed enthusiasm about the partnership, noting, "Groq is proud to support Paytm in driving real-time AI innovation at national scale. Core to our mission is delivering broad compute capacity to serve the world's biggest problems which AI will uniquely solve."

This collaboration positions Paytm at the forefront of AI adoption in the fintech sector, potentially setting new standards for AI-driven financial services in India and beyond.

Implications for Paytm's Future

The partnership with Groq represents a significant step in Paytm's technological evolution. By leveraging advanced AI capabilities, Paytm aims to:

• Improve the speed and reliability of its payment services
• Enhance its ability to detect and prevent fraudulent activities
• Offer more tailored financial products and services to its customers
• Maintain its competitive edge in India's rapidly evolving digital payments landscape

As Paytm continues to invest in cutting-edge technologies, this collaboration with Groq could play a crucial role in shaping the future of AI-powered financial services in India.

While the specific financial terms of the partnership were not disclosed, the long-term impact on Paytm's operations and service quality could be substantial. As the integration progresses, users of Paytm's platform may experience faster, more secure, and increasingly personalized financial services.

New Revenue Streams from AI Products

In a related development, a Paytm co-executive has predicted that AI products will create new revenue streams for the company. This aligns with the company's strategic focus on AI integration and suggests that Paytm is not only looking to enhance its existing services but also exploring new business opportunities enabled by AI technology.

The combination of the Groq partnership and the potential for new AI-driven revenue streams indicates that Paytm is positioning itself as a leader in AI-powered fintech solutions, with a clear vision for leveraging these technologies to drive growth and innovation in the coming years.

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.