Paytm's parent company, One97 Communications, reported strong financial results for the second quarter of fiscal year 2027. The company’s revenue increased by 28% year-on-year (YoY) to ₹2,648 crore, while net profit surged to ₹225 crore. This growth highlights Paytm's continued expansion in the fintech sector despite some exceptional expenses in the previous year.
- Revenue grew 28% YoY to ₹2,648 crore.
- Excluding last year's PIDF incentive, revenue growth was 33% YoY.
- EBITDA rose nearly 90% YoY to ₹270 crore.
- Operating margin improved from 7% to 10%.
- Net profit increased 971% YoY to ₹225 crore, adjusting to ~30% growth without exceptional expenses.
What contributed to Paytm’s revenue growth in Q2 FY27?
Paytm’s revenue for Q2 FY27 reached ₹2,648 crore, marking a 28% increase compared to ₹2,061 crore in the same quarter last year. When excluding the Payments Infrastructure Development Fund (PIDF) incentive received in the previous year, the revenue growth was even stronger at 33%, rising from ₹1,987 crore to ₹2,636 crore.
The PIDF incentive was a program by the Reserve Bank of India to encourage digital payments infrastructure in smaller towns and underserved areas. This scheme ended in December 2025, so the current revenue figures reflect organic growth without this support.
How did Paytm perform operationally in this quarter?
Operationally, Paytm showed significant improvement. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) jumped nearly 90% YoY to ₹270 crore from ₹143 crore in Q2 FY26. The operating margin increased from 7% to 10%, indicating better efficiency and profitability.
When excluding the PIDF incentive impact, EBITDA growth was even more impressive at 279%, rising from ₹68 crore to ₹258 crore. The EBITDA margin expanded from 3% to 10%, showing strong operational leverage.
What explains the rise in net profit for Paytm?
Paytm’s net profit for Q2 FY27 soared by 971% YoY to ₹225 crore, compared to ₹21 crore in the same quarter last year. However, the previous year’s quarter included an exceptional expense of ₹190 crore related to a loan provided to a joint venture, which affected the net profit negatively.
After adjusting for this exceptional expense, the net profit growth stands at approximately 30% YoY, reflecting solid profitability improvements.
How has Paytm’s stock performed in 2026?
Shares of One97 Communications, Paytm’s parent company, have risen by 28% in 2026 year-to-date. This performance outpaced the broader market despite weak overall sentiment, driven by the company’s strong quarterly results and growth prospects.
Frequently Asked Questions
Q: What is the Payments Infrastructure Development Fund (PIDF)?
A: The PIDF is a Reserve Bank of India initiative to promote digital payments infrastructure in smaller towns and underserved areas. It provided incentives to banks and non-banks but was discontinued in December 2025.
Q: Why did Paytm’s net profit increase so much compared to last year?
A: The large increase is partly due to an exceptional expense in the previous year’s quarter. Adjusting for that, net profit still grew about 30% year-on-year, showing genuine profitability improvement.
Q: What does EBITDA indicate about Paytm’s performance?
A: EBITDA measures operational profitability before accounting for interest, taxes, depreciation, and amortisation. Paytm’s nearly 90% increase in EBITDA shows stronger core business performance.
