Paytm reported a net profit of 225 crore rupees for the second quarter of fiscal year 27. This figure is nearly ten times higher than the 21 crore rupees recorded during the same period last fiscal year.
Revenue for the second quarter reached 2,648 crore rupees compared to 2,061 crore rupees in the corresponding period of the previous fiscal year, demonstrating a year-over-year (YoY) growth of 28.4%.
According to the company's data, EBITDA increased by 90% year-over-year, and the EBITDA margin expanded to 10%. Paytm noted that revenue from financial distribution services grew by 49% year-over-year, reaching 912 crore rupees, while the number of key financial services clients increased by 35% year-over-year to 8.8 lakh.
Net payment revenue grew by 21% on a comparable basis year-over-year, reaching 644 crore rupees. Paytm stated that due to its focus on the monetizable user base, the company has captured the market share of consumer UPI payments for the sixth consecutive quarter, and the volume of Paytm UPI transactions grew more than twice as fast as industry growth.
Monthly active users increased by 1 crore rupees year-over-year, reaching 8.5 crore rupees. This is the largest increase in almost three years, resulting from product improvements, enhanced customer acquisition and retention, and AI-based personalization.
Paytm emphasized that AI is increasingly becoming an operating system, embedding fine-tuned models and agents into processes for consumers, sellers, and engineers, as well as in risk management, fundraising, fraud prevention, and personalization. The efficiency achieved through AI helped reduce indirect costs as a percentage of revenue from 52% to 46% compared to the previous year. Furthermore, the company began offering its AI platform to corporate sellers, expanding its internal capabilities to assist them in growth and customer engagement across various channels.
Paytm forecasts sustained revenue growth and margin expansion, which will contribute to long-term profit growth, driven by a large addressable market, accelerated revenue growth, and structural operational leverage improvements enabled by AI.
