Paytm Q2 Results: Revenue jumps 24%, profit at Rs 211 crore – 5 key takeaways
Paytm posted a strong performance in the September quarter, continuing the steady turnaround it began earlier this year. The company’s revenue for the three months to September 2025 rose 24 per cent year-on-year to Rs 2,061 crore, driven by a rise in merchant subscriptions, higher transaction volumes and a growing share of financial services income.
It also remained in profit for a second straight quarter. After accounting for a one-time charge of Rs 190 crore related to a shareholder loan, Paytm’s profit after tax came in at Rs 21 crore.
Payments business drives top-line expansion
Paytm’s payments business remained the key growth engine, contributing Rs 1,223 crore in revenue during the quarter, a rise of 25 per cent from the same period last year. Net payment revenue increased 28 per cent to Rs 594 crore, led by higher transaction volumes and deeper penetration across merchants and consumers.
Gross Merchandise Value (GMV) for the quarter climbed 27 per cent year-on-year to Rs 5.67 lakh crore, reflecting starong adoption of Paytm’s QR codes, payment gateways and Soundbox devices across the country. The company said India’s first AI-powered Soundbox has seen strong merchant acceptance, helping businesses gain real-time insights into payments and performance.
Financial services revenue rises 63% on stronger credit growth
Revenue from financial services distribution surged 63 per cent year-on-year to Rs 611 crore, supported by the growing demand for merchant loans and improved collection efficiency. The company said the higher reserves underscore its financial strength and ability to reinvest in new technology and growth initiatives. Marketing spends fell 43 per cent as Paytm deepened its footprint in Tier-2 and Tier-3 cities through targeted merchant expansion.
JM Financial retains ‘buy’ rating, sees further upside
Brokerage firm JM Financial reaffirmed its bullish stance on Paytm, citing continued strength in profit momentum and operating leverage. It maintained a ‘Buy’ rating with a revised target price of Rs 1,470 – about 16 per cent higher than the current share price of Rs 1,269.
The brokerage noted that Paytm’s EBITDA nearly doubled sequentially to Rs 1.4 billion, supported by better payment processing margins and disciplined cost management. Payment GMV rose 6 per cent quarter-on-quarter to Rs 5.7 trillion, while device subscriptions climbed to 13.7 million. JM Financial lauded Paytm’s “industry-first AI Soundbox,” describing it as a leap towards intelligent merchant assistance, delivering real-time business insights.
‘Gold Coins’ programme strengthens customer loyalty
In its quarterly update, Paytm founder and chief executive officer Vijay Shekhar Sharma said the company remains focused on improving the experience for its loyal customer base while building long-term value.
A key part of this effort is the ‘Gold Coins’ loyalty programme, which allows users to earn digital gold for every payment made on the Paytm app – whether through UPI, debit or credit cards. The coins can be redeemed as Paytm Digital Gold, promoting savings and responsible financial behaviour.
“Our focus is on delivering value and trust to our customers. The ‘Gold Coins’ programme turns everyday transactions into opportunities for wealth creation,” Sharma said. The initiative also aims to position Paytm not just as a payments platform but as a trusted financial partner for everyday users.
Innovation and technology to drive next phase of growth
Paytm said it is using technology and data intelligence to improve how customers and merchants interact on its platform. The company added that its long-term goal remains sustainable profitability through disciplined execution and technology-led efficiency.
