One 97 Communications Ltd, the parent company that operates the brand Paytm, reported an over 10-fold rise in profit after tax to ₹225 crore in the September quarter (Q2 FY27), from ₹21 crore a year ago, on a reported basis, marking its sixth consecutive profitable quarter.
Operating revenue rose 28 per cent YoY to ₹2,648 crore, driven by sustained momentum across merchant and consumer businesses, expanded monetisation and AI adoption.
Ebitda rose 90 per cent YoY to a record ₹270 crore, with Ebitda margin expanding to 10 per cent, reaching double digits for the first time and reflecting stronger operating profitability. For H1 FY27, profit after tax more than tripled YoY to ₹445 crore, from ₹144 crore a year ago, on a reported basis.
On a comparable basis, excluding the Payments Infrastructure Development Fund (PIDF) incentive received until December 2025, underlying growth was even stronger. Operating revenue grew 33 per cent YoY and Ebitda nearly quadrupled, while Ebitda margin expanded from 3 per cent to 10 per cent.
Paytm gained consumer UPI payment market share for the sixth consecutive quarter, with Paytm UPI transaction value growing 42 per cent for the quarter, more than double the industry growth rate of 19 per cent. Monthly transacting users increased by 1 crore YoY to 8.5 crore, the highest addition in nearly three years, driven by better product, stronger acquisition and retention, and AI-led personalisation.
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Payment services revenue increased 25 per cent YoY to ₹1,434 crore, while net payment revenue grew 21 per cent YoY on a comparable basis to ₹644 crore.
This was supported by a structural improvement in payment processing margin, which is comfortably above 4 bps, led by growth in high-margin payment instruments including credit cards on UPI and Paytm Postpaid, along with market share gains.
Merchants on subscription plans increased by 27 lakh YoY to 1.64 crore. The company said high merchant retention, payment revenue and loan distribution are resulting in higher revenue per merchant.
Revenue from distribution of financial services grew 49 per cent YoY to ₹912 crore, driven by accelerating growth in merchant loan distribution, strong growth in personal loans and Paytm Postpaid, and improved monetisation in Margin Trade Funding (MTF) and Paytm Gold. Repeat borrowers accounted for more than half of merchant loan disbursements, while key financial services customers increased 35 per cent YoY to 8.8 lakh.
The company said AI is increasingly becoming the operating system of Paytm, with fine-tuned models and agents deployed across consumer, merchant and engineering journeys, risk management, collections, fraud prevention and personalisation. AI-led efficiencies helped reduce indirect expenses as a share of revenue to 46 per cent from 52 per cent a year ago. Paytm has also begun offering its AI platform to enterprise merchants.
"With a large addressable market, accelerating revenue growth and AI-led improvements in structural operating leverage, Paytm is delivering sustained revenue growth and margin expansion, which will continue to compound into Long-Term Profit Growth," it said as part of its Q2 earnings release.
Cash balance increased to ₹13,617 crore as of September 2026, providing continued optionality for business expansion.
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