Paytm posts ₹21 crore profit, revenue from ops grows 24% in Q2FY26

This compares with a profit of Rs 928 crore in Q2FY25, which was boosted by an exceptional gain from the sale of its movie ticketing and events business to Zomato

One97 Communications (OCL), operator of Paytm brand, on Tuesday reported a net profit of Rs 21 crore for the second quarter of financial year 2026 (Q2FY26). It was a sharp dip from the Rs 928 crore profit the company reported in the same quarter of the last year, which was boosted by an exceptional gain from the sale of its movie ticketing and events business to Zomato.

 

Sequentially, the net profit declined 83 per cent from Rs 123 crore.

 

Paytm earned Rs 2,061 crore in revenue from operations in Q2FY26, a 24.23 per cent increase from Rs 1,659 crore earned from operations in Q2FY25.

 

Other income, which may include interest or dividend income, or any other non-core revenue, was recorded at Rs 222 crore in Q2FY26 as compared to Rs 175 crore in Q2FY25.

 

Sequentially, revenue from operations grew 7.5 per cent from Rs 1,918 crore in Q1FY26. The other income in the quarter was recorded at Rs 241 crore.

 

Paytm slashed its expenses by around 8 per cent to Rs 2,062 crore in Q2FY26 as compared to Rs 2,245 crore in Q2FY25. The company tightly controlled its expenses sequentially, with them rising marginally by 2.3 per cent from Rs 2,016 crore in Q1FY26.

 

OCL said it will invest up to Rs 2,250 crore in its wholly-owned subsidiary Paytm Payments Services (PPSL) via a rights issue.

 

This is being done to strengthen its net worth, pay for acquisition of offline merchant payment business, fund working capital needs, and support its leadership in the merchant payments business, the company said.

 

The transaction is expected to be executed before December 31, 2025.

 

PPSL, the company’s wholly-owned subsidiary, posted a revenue of Rs 1,171.6 crore in FY25, as compared to Rs 2,294 crore in FY24.

 

As part of its internal restructuring last month, Paytm transferred its offline merchants’ payment business to PPSL to comply with Reserve Bank of India (RBI) regulations governing payment aggregators.

 

The consolidation of its online and offline merchant payment operations will allow Paytm to manage both segments under a single regulated entity, which received in-principle approval from the RBI to conduct online payment aggregation.

 

Meanwhile, the company said that Manisha Raj Raisinghani was appointed as an additional director designated as Non-Executive Independent Director of the company for a period of five years.