Paytm Q2 FY27 profit rises to Rs 225 crore as revenue grows 28%
By Arjun MehtaSenior Business Editor, Peepals Business
Representative image: viarami / Pixabay
Paytm parent One97 Communications reported Q2 FY27 profit of Rs 225 crore on October 26, 2026, up from Rs 21 crore, as operating revenue rose 28% to Rs 2,648 crore.
What Happened
One97 Communications, the company behind the Paytm payments app, reported a net profit of Rs 225 crore for July to September 2026, the second quarter of the 2026-27 financial year (Q2 FY27), in results announced on Monday, October 26, 2026. That compares with Rs 21 crore a year earlier. Operating revenue rose 28% from a year ago to Rs 2,648 crore. It was the company's sixth profitable quarter in a row.
Key Facts
- Operating revenue: Rs 2,648 crore, up 28% year on year.
- Net profit (profit after tax): Rs 225 crore, up from Rs 21 crore in Q2 FY26.
- Profit before exceptional items: Rs 229 crore, up 9%.
- EBITDA, or operating profit before interest, tax, depreciation and amortisation: Rs 270 crore, up 90%.
- Exceptional items: a loss of Rs 4 crore, compared with a loss of Rs 190 crore a year earlier.
- It is the company's sixth consecutive profitable quarter.
- Before the results, BofA had estimated revenue of Rs 2,641 crore and net profit of Rs 271 crore, according to a preview.
Why It Matters
Paytm grew from a start-up into a listed company, and its results are watched as a test of whether large Indian consumer technology companies can turn steadily profitable. Six profitable quarters in a row suggests the company has moved past the stage of heavy losses and is now running a business that earns money from payments, financial services and merchant tools.
The headline profit figure needs some unpacking. A rise from Rs 21 crore to Rs 225 crore looks like a tenfold jump, but most of that change comes from one-off items. A year ago, the company booked an exceptional loss of Rs 190 crore; this quarter, that figure was only Rs 4 crore. Exceptional items are unusual gains or losses that are not part of normal operations, such as write-downs or settlements. Profit before those items, which better reflects the underlying business, rose 9% to Rs 229 crore.
The operating numbers are strong, however. Revenue grew 28%, and EBITDA nearly doubled, rising 90% to Rs 270 crore. That means the company is earning noticeably more from its core operations as revenue grows faster than costs. Compared with analysts' expectations, revenue came in slightly above BofA's estimate, while net profit was below the brokerage's forecast of Rs 271 crore.
For India's start-up ecosystem, Paytm's progress matters as a signal. Investors decide how much to back young fintech and consumer internet companies partly by watching how listed peers perform. A listed fintech company showing steady profits and revenue growth supports the case that such businesses can mature into durable companies, which can help younger start-ups raise money.
| Measure | Q2 FY27 | Change from Q2 FY26 |
|---|---|---|
| Operating revenue | Rs 2,648 crore | Up 28% |
| Net profit | Rs 225 crore | From Rs 21 crore |
| Profit before exceptional items | Rs 229 crore | Up 9% |
| EBITDA | Rs 270 crore | Up 90% |
| Exceptional items | Loss of Rs 4 crore | From loss of Rs 190 crore |
Impact
Short-term: Investors will weigh the strong revenue and EBITDA growth against the net profit that came in below one brokerage's estimate.
Long-term: If Paytm keeps growing revenue while controlling costs, it strengthens its position in Indian digital payments and financial services, and supports confidence in India's listed new-age technology companies.
Who is affected: Paytm users and merchants, its employees and shareholders, rival fintech companies, and investors in Indian start-ups.
Key Takeaway
Paytm's parent One97 Communications reported Q2 FY27 profit of Rs 225 crore and revenue of Rs 2,648 crore, up 28%, its sixth straight profitable quarter, though much of the profit jump came from smaller one-off charges.
Questions and Answers
What were Paytm's Q2 FY27 results?
One97 Communications reported operating revenue of Rs 2,648 crore, up 28% year on year, and net profit of Rs 225 crore, up from Rs 21 crore, for July to September 2026. The results were announced on October 26, 2026.
Why did Paytm's profit rise so much?
Mostly because one-off charges were much smaller. Exceptional items were a Rs 4 crore loss this quarter, against a Rs 190 crore loss a year earlier. Profit before exceptional items rose 9% to Rs 229 crore.
Is Paytm profitable now?
Yes. Q2 FY27 was the company's sixth consecutive profitable quarter, according to its results.
Did Paytm beat analysts' estimates?
Revenue of Rs 2,648 crore was slightly above BofA's estimate of Rs 2,641 crore, while net profit of Rs 225 crore was below its Rs 271 crore estimate. This is not investment advice.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Arjun Mehta, Senior Business EditorCovers Start-ups & Opportunities and more for Peepals Business. All stories by Arjun Mehta
Arjun Mehta is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
