Paytm Q2 FY26 Results: 24% Revenue Growth, Rs 211 Crore PAT
Paytm has reported strong financial performance for the second quarter of FY26, with revenue growing 24% year-on-year to Rs 2,061 crore and profit after tax reaching Rs 211 crore excluding one-time charges.
Key Takeaways
- Revenue grew 24% YoY to Rs 2,061 crore
- Profit After Tax (PAT) at Rs 211 crore excluding one-time impairment
- Financial services revenue surged 63% to Rs 611 crore
- Merchant subscriptions hit record 1.37 crore
- Cash balance strengthened to Rs 13,068 crore
Financial Performance Highlights
The company’s payment services revenue grew 25% YoY to Rs 1,223 crore, with net payment revenue rising 28% to Rs 594 crore. Gross Merchandise Value (GMV) for the quarter reached Rs 5.67 lakh crore, up 27% YoY, indicating deeper engagement from both merchants and consumers.
EBITDA rose to Rs 142 crore with a 7% margin. While reported PAT stood at Rs 21 crore after accounting for a one-time charge of Rs 190 crore towards full impairment of a shareholder loan, the adjusted PAT of Rs 211 crore reflects strong operational performance.
Business Growth Drivers
Financial services distribution emerged as a major growth engine, with revenue surging 63% YoY to Rs 611 crore. Approximately 6.5 lakh consumers and merchants availed Paytm’s financial services during the quarter.
Merchant subscriptions reached an all-time high of 1.37 crore, adding 25 lakh subscribers year-on-year. The company attributed this milestone to the successful launch of India’s first AI Soundbox, which has seen strong adoption among merchants nationwide.
Cost Efficiency and Financial Position
Paytm demonstrated significant cost discipline with indirect expenses declining 18% YoY to Rs 1,064 crore. Marketing costs saw a substantial 43% reduction, even as the company continued expanding its merchant presence across Tier-2 and Tier-3 cities.
The company’s cash position strengthened to Rs 13,068 crore at quarter-end, up from Rs 12,872 crore in the previous quarter, providing financial flexibility for future AI-driven initiatives.
Strategic Focus
Paytm’s performance underscores its AI-led efficiency and disciplined cost structure. The company continues to leverage artificial intelligence to enhance customer experience, streamline operations, and deepen engagement with users and partners.
Reaffirming its commitment to long-term growth, Paytm remains focused on expanding financial services distribution, strengthening merchant relationships, and building new opportunities in the AI-led digital economy. The company’s strategy emphasizes sustainable profitability and creating value across its payments and financial services ecosystem.
