New Delhi [India], November 4 (ANI): Paytm (One 97 Communications Limited), India’s leading payments and financial services distribution company and pioneer of mobile payments, QR codes, and Soundbox, continued its profitable growth trajectory in the quarter ending September 2025 (Q2 FY26).
The company reported a 24 per cent year-on-year (YoY) rise in revenue to Rs 2,061 crore, driven by an expansion in merchant subscriptions, higher payments Gross Merchandise Value (GMV), and strong growth in financial services revenue.
Revenue from the distribution of financial services surged 63 per cent YoY to Rs 611 crore, supported by the rise in merchant loans and improved collections. During the quarter, approximately 6.5 lakh consumers and merchants availed Paytm’s financial services.
EBITDA rose to Rs 142 crore with a margin of 7 per cent, while Profit After Tax (PAT) stood at Rs 21 crore after accounting for a one-time charge of Rs 190 crore toward the full impairment of a shareholder loan. Excluding this, PAT improved to Rs 211 crore, reflecting the company’s strong operational performance.
The company attributed its performance to AI-led efficiency and a disciplined cost structure. Payment services revenue grew 25 per cent YoY to Rs 1,223 crore, with net payment revenue up 28 per cent to Rs 594 crore. GMV for the quarter reached Rs 5.67 lakh crore, marking a 27 per cent increase YoY and indicating deeper engagement from merchants and consumers.
Merchant subscriptions hit an all-time high of 1.37 crore, an increase of 25 lakh YoY, consolidating Paytm’s leadership in merchant payments. This growth was boosted by the launch of India’s first AI Soundbox, which has witnessed strong adoption among merchants nationwide.
Indirect expenses declined 18 per cent YoY to Rs 1,064 crore, led by a 43 per cent reduction in marketing costs, even as the company expanded its merchant network in Tier-2 and Tier-3 cities. Paytm’s cash balance strengthened to Rs 13,068 crore at the end of the quarter, up from Rs 12,872 crore in the previous quarter, underscoring its financial resilience and flexibility to invest in AI-driven initiatives.
Paytm said its consistent focus on innovation, efficiency, and disciplined execution has enabled it to achieve sustainable profitability while empowering India’s MSMEs and merchant ecosystem.
Reaffirming its commitment to long-term growth, the company stated that it remains focused on expanding financial services distribution, strengthening merchant relationships, and creating new opportunities in the AI-led digital economy. Paytm said its strategy is anchored in sustainable profitability and long-term value creation across its payments and financial services ecosystem. (ANI)
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