Paytm Reports Consecutive Profitable Quarter With Rs 211 Crore PAT; AI-Led Opportunities Boost Growth In Q2

Paytm reported a consecutive profitable quarter with a ₹211 crore PAT (before one-time charge), driven by a 24% revenue rise to ₹2,061 crore, boosted by AI-led growth in payments and financial services, and expanded EBITDA margin to 7%.

One97 Communications Ltd, the parent company of Paytm, India’s full stack merchant payments leader serving MSMEs and enterprises, and a leading financial services distribution company, has reported a strong performance for the quarter ended September 2025.

The company’s Profit After Tax (PAT) rose to Rs 211 crore, excluding a one-time charge of Rs 190 crore for full impairment of loan to JV, First Games Technology Private Limited. After accounting for this adjustment, the reported PAT stood at Rs 21 crore.

“This performance reflects Paytm’s improving operational efficiency and steady progression toward sustainable profitability,” the company said in a statement.

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The robust Q2 performance is in tandem with the fintech major continuing its profitable streak with broad-based growth across payments and financial services.

Operating revenue during the quarter increased 24% year-on-year to Rs 2,061 crore, supported by expansion in both payment services and financial distribution.

The company said, its focus on AI-driven productivity and cost discipline helped lift margins. EBITDA reached Rs 142 crore, translating to a 7% margin. Contribution profit came in at Rs 1,207 crore, a 35% year-on-year increase, with the margin expanding to 59%.

Paytm’s payments business remained a key growth engine. Revenue from payment services climbed 25% YoY to Rs 1,223 crore, while net payment revenue rose 28% to Rs 594 crore. Gross Merchandise Value (GMV) grew 27% YoY to Rs 5.67 lakh crore, aided by improved processing margins and continued merchant adoption.

“The launch of India’s first AI-powered Soundbox, which converts payment alerts into business insights further strengthened Paytm’s merchant ecosystem,” the company added.

Merchant device subscriptions hit a record 1.37 crore, an increase of 25 lakh over the previous year, reflecting consistent expansion across MSMEs and enterprise clients. Meanwhile, revenue from financial services distribution surged 63% YoY to Rs 611 crore, driven by merchant loan growth, better collections, and higher wealth management monetisation.

The company also saw significant gains in efficiency. Indirect expenses were down 18% YoY and 1% sequentially at Rs 1,064 crore. Marketing costs declined 43% YoY, reflecting stronger retention cohorts and improved monetisation.

Paytm closed the quarter with a cash balance of Rs 13,068 crore, giving it ample flexibility to invest in future growth areas such as merchant payments, lending, and AI innovation.

Paytm said it remains confident that its strong business fundamentals, AI-driven efficiencies, and disciplined cost management will continue to support margin expansion and long-term growth.