Paytm Reports Rs 2,061 Crore Revenue and Rs 21 Crore Profit for Q2 FY26

One97 Communications Ltd, the parent company of Paytm, has announced a significant increase in its operating revenue for the second quarter of the financial year 2026. The company reported a revenue of Rs 2,061 crore, representing a 24% rise compared to Rs 1,659 crore in the same quarter of the previous year. However, despite this growth, Paytm's net profit plummeted by 98%, amounting to Rs 21 crore, down from Rs 930 crore in the same period last year.

The financial results, disclosed in unaudited consolidated statements obtained from the National Stock Exchange, indicate that the company’s payment revenue grew by 21% year-on-year to reach Rs 1,146 crore. Furthermore, income from financial services experienced a substantial increase of 63%, totalling Rs 611 crore in Q2 FY26.

In addition to its operational revenue, Paytm garnered Rs 222 crore from other non-operating sources, culminating in an overall revenue of Rs 2,283 crore for the quarter. This performance reflects the company's ability to diversify its income streams amid a competitive market.

Employee benefits constituted the largest portion of the company's expenses, accounting for 32% of total expenditure, which reached Rs 663 crore in Q2 FY26. Payment processing fees closely followed, amounting to Rs 629 crore. Other costs, including marketing, software, technology, and promotional incentives, contributed to an overall expenditure of Rs 2,062 crore, a reduction from Rs 2,245 crore in the same quarter of the previous fiscal year.

Despite achieving top-line growth, Paytm faced challenges that severely impacted its profit margins. The sharp decline in net profit is attributed primarily to the lack of a one-time gain that had positively influenced the previous year's results, coupled with an impairment loss recorded this quarter. The company reported a Rs 190 crore exceptional charge related to loans extended to its gaming joint venture, First Games Technology. This charge was influenced by the recent enactment of the Promotion and Regulation of Online Gaming Act, 2025, which prohibits online gaming activities.

As of September 2025, Paytm's cash and cash equivalents stood at Rs 1,835 crore, with total assets increasing to Rs 22,537 crore, up from Rs 21,448 crore at the conclusion of the previous fiscal year. The company's board has also approved an additional investment of Rs 2,250 crore in Paytm Payments Services Ltd through a rights issue, aimed at strengthening the subsidiary's net worth and supporting the transition of its offline payments business in accordance with regulatory guidance from the Reserve Bank of India issued in September 2025.

At the end of trading on the day of the announcement, Paytm's shares were priced at Rs 1,269, leading to a total market capitalisation of Rs 46,523 crore, equivalent to approximately $5.2 billion. This financial report highlights the dual nature of Paytm's performance, showcasing robust revenue growth while also revealing the impact of regulatory changes and market conditions on profitability.