One97 Communications, the parent of Paytm, announced its Q2FY27 results on Tuesday, reporting a multi‑fold increase in net profit. The company’s net profit for the quarter jumped 971% year‑on‑year to ₹225 crore, compared with ₹21 crore in the same period last year. The sharp rise is partly attributable to the exceptional expense of ₹190 crore recorded in the September 2025 quarter, which was a loan provided to a joint venture. After adjusting for that exceptional gain, the net profit still rose approximately 30% year‑on‑year.

Revenue for the quarter ended September 2026 rose 28% year‑on‑year to ₹2,648 crore, up from ₹2,061 crore in Q2FY26. Excluding the PIDF incentive delivered in the previous year, comparable revenue growth stood at 33% year‑on‑year to ₹2,636 crore versus ₹1,987 crore. The PIDF incentive, announced by the Reserve Bank of India to encourage digital payments infrastructure in smaller towns, rural areas and underserved areas, was discontinued in December 2025.

Operationally, EBITDA for the quarter jumped nearly 90% to ₹270 crore from ₹143 crore in the same period last year. The operating margin improved from 7% in Q2FY26 to 10% in Q2FY27. At the comparable level, excluding PIDF impact, EBITDA rose 279% year‑on‑year to ₹258 crore from ₹68 crore, and the EBITDA margin expanded from 3% to 10% over the same period.

Other key highlights include a 26% year‑on‑year jump in total GMV to ₹7.1 lakh crore from ₹5.7 lakh crore. Registered merchants on the platform increased 10% year‑on‑year to 5.2 crore from 4.7 crore, and rose 2% sequentially from 5 crore in the previous quarter. The total cash balance as of September 2026 stood at ₹13,617 crore, up from ₹13,068 crore, with the company deploying cash in profitable and organic investments.

Paytm’s share price has outperformed the broader market, delivering 28% returns in 2026 on a year‑to‑date and trailing twelve‑month basis. Outlook for Q3FY27 indicates a potential decline in contribution margin due to higher costs for its loan distribution business under the DLG model and increased card processing expenses during the festive season. Despite these headwinds, operating margins are expected to improve further as the company continues to focus on profitable growth.