Highlights
Paytm Reports 24% Revenue Growth for Q2 FY26
Fintech leader One97 Communications Ltd, known as Paytm, has showcased a remarkable 24% year-on-year increase in revenue for the quarter ending September 2025 (Q2 FY26). The firm recorded a profit of Rs 21 crore during this timeframe. Paytm’s operational revenue rose to Rs 2,061 crore in Q2 FY26, up from Rs 1,659 crore in the same quarter of the previous fiscal year, as detailed in the unaudited consolidated financial statements obtained from the National Stock Exchange.
Key Financial Highlights
The earnings call revealed that the company’s payment revenue climbed 21% year-on-year, reaching Rs 1,146 crore, while revenue from its financial services segment surged by 63% to Rs 611 crore in Q2 FY26. Furthermore, Paytm earned Rs 222 crore from additional non-operational sources, which drove the total revenue to an impressive Rs 2,283 crore for Q2 FY26.
Expenditure Insights
Employee benefits represented the largest expense, constituting 32% of total spending, which totalled Rs 663 crore in Q2 FY26. Payment processing charges were reported at Rs 629 crore for the same timeframe. Other costs related to marketing, software, technology, promotional incentives, and indirect expenses resulted in an overall expenditure of Rs 2,062 crore for Q2 FY26, compared to Rs 2,245 crore in the corresponding quarter of the previous fiscal year.
Net Profit Decline
Despite the growth in revenue, the company’s net profit saw a drastic decline of 98% year-on-year, dropping to Rs 21 crore from Rs 930 crore a year prior. This significant decrease was predominantly due to the lack of a one-off gain that had inflated the previous year’s results, coupled with an impairment loss recognised in the current period. Paytm also incurred a Rs 190 crore exceptional charge related to loans given to its gaming joint venture, First Games Technology, following the recent enactment of the Promotion and Regulation of Online Gaming Act, 2025, which prohibits online gaming.
Current Financial Position
As of September 2025, Paytm reported cash and cash equivalents amounting to Rs 1,835 crore, with total assets increasing to Rs 22,537 crore from Rs 21,448 crore at the close of FY25. The board of the company has greenlit an additional investment of Rs 2,250 crore into Paytm Payments Services Ltd (PPSL) via a rights issue, aimed at bolstering the subsidiary’s net worth and facilitating the transition of its offline payments operations, as per the RBI’s regulatory directions issued in September 2025.
By the end of today’s trading session, Paytm’s shares were valued at Rs 1,269, resulting in a total market capitalization of Rs 46,523 crore or approximately $5.2 billion.
