Shares of One 97 Communications Ltd (Paytm) surged 4.08% to Rs 1,319.70 in Thursday’s session after the fintech company reported steady growth across segments in its Q2 FY26 results, supported by improving margins and a rise in core operating revenue.
Q2 FY26 performance highlights
Paytm reported a net profit of Rs 21 crore for the quarter ended September 2025, compared with Rs 939 crore in the same period last year. However, the previous year’s profits included a one-time gain of Rs 1,345 crore from the sale of its movie ticketing and events business to Zomato. Excluding that exceptional item, this quarter’s profit indicates a notable improvement in core business performance.
Revenue from operations rose 24% year-on-year to Rs 2,061 crore, up from Rs 1,659 crore in Q2 FY25, driven by growth in payment services, loan distribution, and financial services.
Meanwhile, total expenses dropped 8.15% YoY to Rs 2,062 crore, reflecting improved cost efficiencies across verticals.
Margin expansion and profitability
The company’s EBITDA margin improved by 317 basis points sequentially, showcasing enhanced operational leverage and disciplined expense control. Analysts said the margin expansion reflects Paytm’s steady progress toward achieving sustainable profitability.
Despite an overall positive performance, the company reported a one-time loss of Rs 190 crore from a loan given to First Games Technology Private Limited (FGTPL), an online gaming joint venture that faced impairment after the Promotion and Regulation of Online Gaming Act, 2025 prohibited online gaming.
Market reaction
Shares of Paytm opened strong at Rs 1,308 and touched a high of Rs 1,315.50 in early trade, marking one of the day’s top gainers on the NSE. The company’s market capitalization now stands at Rs 84,228 crore.
Market analysts attributed the stock rally to improved operational metrics and segmental growth despite one-time charges, indicating investor confidence in the company’s execution and profitability roadmap.
Outlook
With expanding revenue streams across lending, merchant payments, and financial services, Paytm aims to continue improving profitability in upcoming quarters. The management highlighted its focus on optimizing costs and scaling revenue-generating verticals without heavy cash burn.
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