Paytm’s second-quarter net income rose to Rs 225 crore as revenue growth, stronger financial services distribution and AI-led efficiency gains drove a sharp improvement in profitability.
Paytm reported a sharp rise in quarterly profit in the second quarter of FY27, with net income climbing to Rs 225 crore from Rs 21 crore a year earlier, as higher revenue and improved operating efficiency lifted results.
Revenue for the quarter increased 28.4% year on year to Rs 2,648 crore from Rs 2,061 crore. The company said earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 90% from a year ago, while the EBITDA margin widened to 10%.
The digital payments and financial services group also said distribution of financial services revenue grew 49% year on year to Rs 912 crore. Key financial services customers increased 35% to 8.8 lakh, while net payment revenue rose 21% on a comparable basis to Rs 644 crore.
Paytm said it continued to gain share in consumer UPI payments for the sixth straight quarter, with UPI gross transaction value growing at more than twice the industry rate. Monthly transacting users rose by 1 crore from a year earlier to 8.5 crore, which the company described as its strongest addition in nearly three years.
The company said artificial intelligence is becoming central to its operations, with fine-tuned models and agents being used across consumer, merchant and engineering processes, as well as in risk management, collections, fraud detection and personalisation. It added that AI-driven gains helped cut indirect expenses to 46% of revenue from 52% a year earlier.
Paytm has also begun offering its AI platform to enterprise merchants, extending internal tools it says can help businesses grow and engage customers across channels. The company said it expects revenue growth and further margin improvement to support long-term profit expansion.
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