One97 Communications (PAYTM) Q2 26/27 earnings summary

Executive summary

• Payments-led merchant and consumer acquisition supports monetization through credit distribution, insurance, wealth and emerging AI services.

• Q2 FY27 revenue was ₹2,648 crore, up 28% YoY; net profit was ₹225 crore versus ₹21 crore a year earlier.

• EBITDA was $28 Mn, up 90% YoY; business-model monetization and AI adoption supported growth and cost efficiency.

• AI is being applied across acquisition, retention, service and product deployment to improve revenue and operating costs.

• The Board approved investments of up to ₹500 crore each in Paytm Cloud Technologies and Paytm Singapore over 12 months, and updated lending-partner DLG limits.

Financial highlights

• Operating revenue was $276 Mn, up 28% YoY and 8% QoQ; comparable growth excluding PIDF incentives was 33% YoY.

• Reported EBITDA was $28 Mn, up 90% YoY and 33% QoQ; excluding PIDF, comparable EBITDA was $27 Mn, up 279% YoY.

• Q2 consolidated PBT was ₹292 crore after a ₹4 crore exceptional loss; H1 FY27 revenue was ₹5,096 crore and net profit ₹445 crore.

• Q2 consolidated net profit was ₹225 crore versus ₹21 crore in Q2 FY26; basic EPS was ₹3.52 for Q2 and ₹6.97 for H1.

• Consolidated assets were ₹24,438 crore at September 30, 2026, including cash and cash equivalents of ₹2,495 crore and bank balances of ₹10,219 crore.

Outlook and guidance

• NPCI’s proposed UPI MDR framework indicates ~2.5 bps potential uplift in payment processing margin; the impact is upside, not a core business assumption.

• The MDR uplift is expected to become clearer over 2–3 quarters after implementation; implementation timing remained subject to NPCI notification.

• Q3 contribution margin is expected to decline due to higher DLG costs and seasonality, while EBITDA is expected to improve.

• Absolute EBITDA is expected to grow QoQ; over three to four quarters, indirect-expense growth is targeted below half of contribution-margin growth.

• AI merchant-service monetization may take at least two to three more quarters to become more visible; Paytm Postpaid is expected to contribute meaningful revenue and EBITDA from FY28 onward.