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One 97 Communications Ltd (Paytm) on Monday announced its Q2 FY27 results, reporting an over 10-fold rise in profit after tax (PAT) to 225 crore for the September quarter, from 21 crore a year ago, on a reported basis.
During the quarter, Paytm revenue rose 28% YoY to 2,648 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 90% YoY to 270 crore, its highest ever for a quarter, with the EBITDA margin expanding to 10%, reaching double digits for the first time. On a comparable basis, excluding the Payments Infrastructure Development Fund (PIDF) incentive received until December 2025, underlying growth was even stronger, with operating revenue growing 33% and EBITDA nearly quadrupling. The company said AI-led efficiencies helped reduce indirect expenses as a share of revenue to 46% from 52% a year ago. The company also continued to gain consumer UPI payment market share, with Paytm UPI gross transaction value (GTV) growing at more than double the industry growth rate. This marks its sixth consecutive profitable quarter, as sustained momentum, expanded monetisation and AI adoption drove growth across its merchant and consumer businesses. Payments remained a key growth driver, with payment services revenue rising 25% YoY to 1,434 crore, while net payment revenue grew 21% YoY on a comparable basis to 644 crore. Paytms merchant base also expanded, with merchants on subscription plans reaching 1.64 crore following the addition of 27 lakh YoY, while high merchant retention and engagement, and subsequent loan distribution are resulting in higher revenue per merchant. On the consumer payments side, the company said it is focused on its monetisable user base. Paytm recorded its sixth consecutive quarter of market share gains. Monthly transacting users rose by 1 crore YoY to 8.5 crore, the highest addition in nearly three years. Revenue from distribution of financial services rose 49% YoY to 912 crore, driven by accelerating growth in merchant loan distribution, strong growth in personal loans and Paytm Postpaid, and improved monetisation in equity broking and wealth products, especially in Margin Trade Funding (MTF) and Paytm Gold. Repeat borrowers contributed more than half of merchant loan disbursements, while key financial services customers grew 35% YoY to 8.8 lakh. (ANI)
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