One 97 Communications Ltd, the parent company of Paytm, on Monday announced its results for the July-September quarter (Q2 FY27), reporting an over ten-fold rise in profit after tax to ₹225 crore (yaani about ₹2.25 billion), from ₹21 crore in the same quarter last year. It was the company's sixth consecutive profitable quarter.

Source: The Hindu BusinessLine

Revenue from operations rose 28 per cent year on year to ₹2,648 crore (yaani about ₹26.48 billion), from ₹2,061 crore a year earlier. Including other income of ₹182 crore, total income stood at ₹2,830 crore, while total expenses rose 23 per cent to ₹2,531 crore.

Source: Inc42

₹225 croreQ2 net profit, up from ₹21 crore a year ago
₹2,648 croreRevenue from operations, up 28% YoY
₹270 croreEBITDA, up 90% YoY — highest ever for a quarter
8.5 croreMonthly transacting users, up 1 crore YoY

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 90 per cent to ₹270 crore, the highest ever for a quarter, with the EBITDA margin expanding to 10 per cent and reaching double digits for the first time. On a comparable basis, excluding the Payments Infrastructure Development Fund (PIDF) incentive received until December 2025, operating revenue grew 33 per cent and EBITDA nearly quadrupled, the company said.

Payments remained the key growth driver. Payment services revenue rose 25 per cent to ₹1,434 crore, while net payment revenue grew 21 per cent on a comparable basis to ₹644 crore. The company said it gained consumer UPI market share for the sixth consecutive quarter, with Paytm UPI gross transaction value growing at more than double the industry rate, and monthly transacting users rose by 1 crore year on year to 8.5 crore — the highest addition in nearly three years.

Merchants on subscription plans reached 1.64 crore after an addition of 27 lakh year on year. The company said AI-led efficiencies helped reduce indirect expenses as a share of revenue to 46 per cent, from 52 per cent a year ago. Looking ahead, Paytm said it expects its contribution margin to decline in the December quarter because of higher default loss guarantee costs and seasonal effects, while EBITDA should continue to improve.