One 97 Communications543396Quarterly results

Q2 FY27 earnings release: revenue up 28% YoY, EBITDA up 90% YoY

Q2 FY27 earnings release: revenue ₹2,648 Cr (▲28% YoY), EBITDA ₹270 Cr (▲90% YoY), profit after tax ₹225 Cr.

By ScoutQuest · Mon 26 Oct 2026, 8:55 PM IST · 2 min read

Revenue: ₹2,648 Cr (▲28% YoY)
EBITDA: ₹270 Cr (▲90% YoY)
Profit After Tax: ₹225 Cr

Paytm's earnings release for Q2 FY 2027, the quarter ended 30 September 2026, reports higher revenue, higher EBITDA and a profit after tax, with management linking part of the improvement to AI-led cost efficiency.

The headline numbers

Revenue: ₹2,648 Cr, up 28% YoY
EBITDA: ₹270 Cr, up 90% YoY
Profit after tax: ₹225 Cr

Merchant payments

Net payment revenue was ₹644 Cr. Merchant GMV was ₹7.1 L Cr, up 26% YoY. The company calls its Soundbox device fleet an indispensable operating system at merchant storefronts, with high retention and engagement helping loan distribution and revenue per merchant. It attributes a structural improvement in payment processing margin to growth in MDR-bearing instruments such as credit cards on UPI and Paytm Postpaid, market share gains and pricing discipline, and expects the trend to continue.

Financial services distribution

Revenue from this business was ₹912 Cr. Loans are underwritten and held by lending partners, while the company's role is limited to distribution, insights, collections and technology, keeping the model capital-light. An increasing share of disbursements is under the DLG (Default Loss Guarantee) model, where the cost is recognised upfront and the revenue over the life of the loan. DLG costs have risen and will increase materially from Q3 FY 2027 as DLG has resumed with the largest lending partner, within the permitted limit.

Consumer business

The release describes a sixth consecutive quarter of consumer payment market share gains and monthly transacting users at their highest in recent years. Paytm Postpaid, Personal Loans, Equity Broking and Wealth, and Advertising are presented as the monetisation engines, with AI-led personalisation cited behind acquisition and retention.

Costs and AI

Indirect expenses grew more slowly than revenue, and the company says AI-led efficiencies across its workflows are behind the improvement. It expects some costs, including software, cloud and data centre expenses, to stay elevated for one more quarter because of higher AI usage and platform consolidation, and cautions that there may be quarterly volatility in how contracts are structured.

The UPI MDR angle

The release states that any MDR on UPI would be a revenue and profit upside to the business, not its core foundation. On the NPCI framework for select person-to-merchant UPI payments, the company expects the benefit to reflect in payment processing margin and says the outcome may stabilise over the first few quarters after implementation.

What to keep in mind

This is the company's own earnings release, presenting its performance with a forward-looking tone. Several statements describe expected trends rather than completed outcomes, so they are worth reading alongside the detailed financial results.

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