New Delhi, Nov 4 (NationPress) Paytm, a prominent player in the payments and financial services sector, unveiled its financial performance for the quarter ending on September 30 (Q2 FY26) on Tuesday, showcasing notable enhancements across all profitability metrics.

The company’s operational revenue surged by 24 percent year-on-year, reaching Rs 2,061 crore. This growth was fueled by an increase in subscription merchants, a rise in payments GMV, and an expansion in the distribution of financial services.

EBITDA rose to Rs 142 crore, achieving a 7 percent margin. This improvement reflects leverage from AI operations, stringent cost control, and the early momentum from the festive season.

Paytm reported a Profit After Tax (PAT) of Rs 21 crore, which incorporates a one-time charge of Rs 190 crore for the complete impairment of a shareholder loan.

When excluding this charge, PAT climbed to Rs 211 crore, underscoring the company’s resilience and effective execution in a tough macroeconomic landscape.

Contribution profit increased by 35 percent year-on-year to Rs 1,207 crore, with margins expanding to 59 percent, driven by enhanced net payment revenue, a greater share of financial services revenue, and reduced direct expenses.

As of now, Paytm’s cash reserves stand at Rs 13,068 crore, offering significant capital flexibility to invest in merchant expansion, distribution of financial services, and AI-led innovation.

Within its payments division, revenue, inclusive of other operating income, grew 25 percent YoY to Rs 1,223 crore, as the company reinforced its leadership among India’s MSMEs and larger enterprises.

Gross Merchandise Value (GMV) rose by 27 percent YoY to Rs 5.67 lakh crore, while the number of merchant subscriptions hit 1.37 crore, an increase of 25 lakh YoY, affirming Paytm’s dominance in omni-channel merchant payments.

The introduction of India’s inaugural AI Soundbox during this quarter emphasized Paytm’s commitment to an AI-centric vision.

Simultaneously, Paytm streamlined its cost structure, achieving an 18 percent reduction in indirect expenses YoY.

Marketing expenditures saw a significant decline of 43 percent YoY, even as Paytm expanded its merchant network and strengthened its footprint in tier 2 and tier 3 cities, as per company reports.