Revenue from operations during the period under review increased by 24% YoY to Rs 2,061 crore. The revenue growth was driven by continued growth momentum in subscription merchants, payments GMV and distribution of financial services.

In Q2 FY 2026, the Payment Services revenue (including other operating revenue) was up 25% YoY to Rs 1,223 crore. Net payment revenue rose by 28% YoY at Rs 594 crore due to improved payment processing margin, high quality device additions and early onset of festive season.

The company saw its Gross Merchandise Value (GMV) surge by 27% year-on-year to ₹5.67 lakh crore. This significant growth was fueled by better processing margins, largely due to the increased use of credit cards on UPI and enhanced affordability options like EMI (Equated Monthly Installment). Furthermore, Paytm's merchant ecosystem continued its expansion, driving the company's leadership in omni-channel payments. Merchant subscriptions hit a record high of 1.37 crore, reflecting a year-on-year increase of 25 lakh.

The revenue from the distribution of financial services revenue grew 63% YoY to Rs 611 crore in Q2 FY26. This was driven by continued growth in merchant loan distribution and improved collection performance experience for our partners. The number of customers availing financial services rose to 6.5 lakh in Q2 FY26 from from 6.0 lakh in Q2 FY25.

In Q2 FY26, the Marketing Services revenue was Rs 228 crore, down 25% YoY. On a like-to-like basis, after adjusting for sale of the entertainment ticketing business in Q2 FY25, the revenue was down 15% YoY.

Contribution profit grew by 35% YoY to Rs 1,207 crore, with a Contribution margin of 59%, an increase of 5 percentage point YoY, fuelled by improved net payment revenue, higher share of distribution of financial services revenue, and lower other direct costs.

EBITDA improved to Rs 142 crore (margin of 7%) in Q2 FY26, on account of improved contribution margin and continued discipline on costs. The company had recorded a negative EBITDA of Rs 404 crore in the same period last year.

One 97 Communications said that it has a loan to First Games Technology (a joint venture entity). In Q2 FY26, full impairment of this loan has been taken, leading to a one-time charge of Rs 190 crore in Q2 FY26. Excluding the exceptional charge, the company has recorded a net profit of Rs 211 crore.

The company’s cash balance was Rs 13,068 crore as of quarter ending September 2025, as compared to Rs 9,999 crore as of quarter ending September 2024.

Paytm is a mobile payments and financial services distribution company.

The scrip had lost 0.53% to end at Rs 1268.25 on the BSE yesterday.