Paytm reported a robust 28% year-on-year revenue growth to ₹2,648 crore for the second quarter of FY27. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a significant jump of 90% YoY to ₹270 crore. This performance is attributed to sustained revenue growth and margin expansion driven by AI adoption across merchant and consumer businesses, alongside improved cost efficiencies.
Paytm Delivers Strong Financial Performance in Q2 FY27
One 97 Communications Limited, operating as Paytm, announced its financial results for the second quarter of Fiscal Year 2027 (Q2 FY27), ending September 30, 2026. The company showcased strong operational momentum with a 28% year-on-year increase in revenue, reaching ₹2,648 crore. This growth underscores the effectiveness of its business model strength and increasing adoption of Artificial Intelligence (AI) technologies.
EBITDA Surges Amidst Efficiency Gains
The company’s profitability also saw a substantial improvement, with EBITDA growing by an impressive 90% year-on-year to ₹270 crore. This surge in EBITDA is a direct result of accelerated revenue growth and enhanced cost efficiencies across both its merchant and consumer-facing businesses. Paytm highlighted its strategic investments in AI to unlock new growth avenues and further optimize operations.
Key Business Drivers and Growth Strategies
Paytm’s growth is underpinned by several key strategies:
- Merchant Payments Leadership: Driven by gains in market share within the large, underserved MSME sector, steady growth in device subscriptions, and structural improvements in payment margins.
- Capital-Light Lending Business: A long runway is evident in its merchant loan distribution, leveraging AI across the customer lifecycle for better insights, collections, and expanding the lendable base.
- Consumer Monetisation: AI-led acquisition, retention, and product innovation are boosting monetisable consumers and market share, leading to improved monetization in key consumer businesses.
- AI-Accelerated Operating Leverage: Revenue and Contribution Profit are growing faster than indirect expenses, with AI applications driving both revenue growth and cost efficiencies.
Financial Highlights
Key financial figures for Q2 FY27 include:
- Revenue: ₹2,648 Cr (28% YoY growth, 8% QoQ growth)
- EBITDA: ₹270 Cr (90% YoY growth, 33% QoQ growth)
- Profit After Tax: ₹225 Cr
The company also noted that its performance on a comparable basis, excluding PIDF incentives, was even stronger, with revenue growth at 33% YoY.
Future Outlook
Paytm remains focused on leveraging AI and its strong business model to drive sustained revenue growth and margin expansion, aiming for long-term profit growth. The company reiterated its mission to bring half a billion Indians into the mainstream economy.
Earnings Call Details
An earnings call to discuss the Q2 FY27 financial results and business updates is scheduled for October 27, 2026, from 3:45 PM to 4:30 PM IST via Zoom webinar. The detailed earnings report is available on the company’s investor relations website at ir.paytm.com.
Source: BSE
