Paytm Q2 Results: Profit Rises To Rs 225 Crore, Revenue Up 28%

Paytm Q2 results show consolidated profit of Rs 225 crore for the quarter ended 30 September 2026, up from Rs 21 crore a year earlier, as revenue from operations rose 28% to Rs 2,648 crore. Paytm parent One 97 Communications announced the numbers on 26 October.
- Revenue from operations: Rs 2,648 crore, against Rs 2,061 crore in Q2 FY26
- Profit after tax: Rs 225 crore, against Rs 21 crore
- EBITDA: Rs 270 crore, up 90% year on year, a 10% margin
- Marketing and promotional spend: Rs 194 crore, against Rs 122 crore
Paytm Q2 Results by Business
Payment services revenue rose 25% to Rs 1,434 crore. Distribution of financial services grew fastest, up 49% to Rs 912 crore. Marketing services, which includes the advertising Paytm sells to brands, rose 26% to Rs 287 crore from Rs 228 crore. Other operating revenue fell to Rs 15 crore from Rs 77 crore.
Merchant GMV was Rs 7.1 lakh crore, up 26%. The company had 1.64 crore subscription merchants and 8.5 crore monthly transacting users, and ended the quarter with a cash balance of Rs 13,617 crore. Contribution profit was Rs 1,479 crore, a 56% margin.
Costs and Tax
Total expenses rose to Rs 2,531 crore from Rs 2,062 crore. Payment processing charges were Rs 805 crore, employee costs Rs 759 crore, and software, cloud and data centre costs Rs 211 crore. The tax charge was Rs 67 crore, which the company said included an additional deferred tax impact of Rs 34 crore.
For the half year, revenue was Rs 5,096 crore and profit Rs 445 crore, against Rs 3,979 crore and Rs 144 crore a year earlier.
What MDR on UPI Could Add
Paytm said NPCI plans to bring in a merchant discount rate on UPI after Diwali, on a date still to be notified. The proposal caps it at 0.4% on select payments above Rs 2,000 for non-industry merchants. Paytm put the indicative uplift at about 2.5 basis points, expected to settle in two to three quarters after it starts, and said its payments processing margin is already comfortably above 4 basis points.
The full figures are in Paytm's investor relations filings.
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