{"id":15150,"date":"2025-11-06T16:28:18","date_gmt":"2025-11-06T10:58:18","guid":{"rendered":"https:\/\/www.torusdigital.com\/toruscope\/?p=15150"},"modified":"2025-11-07T10:09:45","modified_gmt":"2025-11-07T04:39:45","slug":"paytm-q2-fy26-results","status":"publish","type":"post","link":"https:\/\/www.torusdigital.com\/toruscope\/quarterly-results\/paytm-q2-fy26-results\/","title":{"rendered":"Paytm Q2 FY26 Results: Profit Dips 98% to \u20b921 Crore Despite 24% Surge in Revenue"},"content":{"rendered":"

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Fintech major Paytm Ltd (One 97 Communications) announced its financial results for the second quarter of FY2025-26 on 4th<\/sup> November 2025, showing a contrasting trend of strong revenue growth alongside a sharp profit decline. The company reported a 98% drop in net profit to \u20b921 crore, compared with \u20b9939 crore in the same quarter of the previous fiscal year. However, revenue from operations surged 24% year-on-year to \u20b92,061 crore, supported by growth in merchant subscriptions, higher payment volumes, and an expanding financial services portfolio.<\/p>\n

<\/span>Revenue Growth Driven by Merchant and Financial Services Expansion<\/strong><\/span><\/h2>\n

The company\u2019s revenue increase was primarily fuelled by a rise in high-quality subscription merchants and stronger performance in its financial services sector<\/a>. Revenue from payment services, including operating income, rose 25% year-on-year to \u20b91,223 crore, while net payment revenue grew 28% to \u20b9594 crore.<\/p>\n

Revenue from the distribution of financial services recorded an impressive 63% year-on-year growth to \u20b9611 crore, largely driven by merchant loan distribution and improved collection efficiency for lending partners. During the quarter, approximately 6.5 lakh consumers and merchants availed financial services through Paytm\u2019s ecosystem.<\/p>\n

The company\u2019s gross merchandise value (GMV) grew 27% to \u20b95.67 lakh crore, supported by higher payment processing margins, a surge in credit card transactions on UPI, and growing adoption of affordability offerings such as EMIs.<\/p>\n

<\/span>One-Time Impairment Impacts Profit<\/strong><\/span><\/h2>\n

The sharp fall in profit was attributed to a one-time impairment loss of \u20b9190 crore related to a loan given to its joint venture, First Games Technology Pvt Ltd, following regulatory changes under the Promotion and Regulation of Online Gaming Act, 2025.<\/p>\n

Excluding this one-time impact, Paytm\u2019s profit after tax (PAT) stood at \u20b9211 crore, reflecting the underlying operational strength of the business.<\/p>\n

The company\u2019s total expenses dropped 8% year-on-year to \u20b92,062 crore, compared to \u20b92,245 crore in the corresponding quarter last year. Marketing costs also saw a significant 42% decline year-on-year to \u20b972 crore, highlighting improved customer retention and better monetisation efficiency.<\/p>\n

<\/span>Operating Performance and Margin Improvement<\/strong><\/span><\/h2>\n

Paytm\u2019s EBITDA rose to \u20b9142 crore, with a 7% margin, backed by operating leverage and robust top-line growth. Contribution profit stood at \u20b91,207 crore, up 35% year-on-year, with a 59% margin \u2014 an improvement of five percentage points compared to the previous year.<\/p>\n

This performance was supported by a higher share of financial services revenue, improved payment margins, and reduced direct lending and gateway expenses (DLG).<\/p>\n

At the end of the quarter, Paytm held a cash balance of \u20b913,068 crore, reflecting a strong liquidity position and flexibility for future expansion.<\/p>\n


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