Paytm Reports 10-Fold Net Profit Increase in Q2 FY27

Indian fintech firm Paytm announced a significant financial turnaround for the second quarter of the 2027 fiscal year, reporting a net profit of Rs 225 crore. This figure represents a nearly 10-fold increase compared to the Rs 21 crore profit recorded during the same period in the previous fiscal year.

Key Financial Highlights

• Significant profit growth: The company achieved a net profit of Rs 225 crore, up from Rs 21 crore year-over-year.
• Revenue expansion: Total revenue reached Rs 2,648 crore, marking a 28.4% increase from Rs 2,061 crore in the prior year.
• EBITDA improvements: EBITDA rose by 90% year-over-year, with margins expanding to 10%.
• Increased user engagement: Monthly transacting users grew by 1 crore to reach 8.5 crore, the highest addition in three years.
• Financial services gains: Revenue from financial services distribution rose 49% to Rs 912 crore, supported by a 35% increase in key customers.

Operational Efficiency and AI Integration

Paytm attributed much of its operational efficiency to the deployment of artificial intelligence. The company integrated AI models across consumer, merchant, and engineering operations, including risk management and fraud prevention. According to Paytm, these AI-led efficiencies reduced indirect expenses as a share of revenue to 46%, down from 52% in the previous year.

The company has expanded its AI strategy by offering its platform to enterprise merchants. This move allows external businesses to utilize Paytm’s internal capabilities to manage customer engagement across various channels.

Market Share and Future Outlook

Paytm reported growth in its UPI payment market share for the sixth consecutive quarter, noting that its Unified Payments Interface (UPI) Gross Transaction Value (GTV) growth rate exceeded the broader industry average. Net payment revenue for the quarter stood at Rs 644 crore, a 21% increase on a comparable basis.

Looking ahead, Paytm stated it expects sustained revenue growth and margin expansion. The company cited a large addressable market and ongoing structural operating leverage as primary drivers for its long-term profitability goals.