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Paytm Soars: Q2 Profit Jumps 10x on Strong Revenue Growth
27 Oct
Summary
- Company revenue grew 28.4% year-on-year to Rs 2,648 crore.
- Net profit saw a nearly tenfold increase to Rs 225 crore.
- AI integration significantly reduced indirect expenses as a revenue share.
For the second quarter of FY27, Paytm announced a significant financial uplift. The company's revenue reached Rs 2,648 crore, marking a robust 28.4% annual growth.
Profitability saw a dramatic improvement, with net profit soaring to Rs 225 crore, a nearly tenfold increase compared to the Rs 21 crore recorded in the prior year's corresponding quarter.
Paytm attributed substantial growth to its financial services segment, which saw revenue increase by 49% year-on-year. The distribution of financial services also expanded, with key customers growing by 35% to 8.8 lakh.
The company emphasized the growing impact of Artificial Intelligence, noting its deployment across various customer and operational journeys. This AI integration led to a reduction in indirect expenses, which fell from 52% to 46% of revenue year-on-year.
Looking ahead, Paytm anticipates sustained revenue growth and margin expansion, driven by a large addressable market and AI-led operational efficiencies, projecting long-term profit growth.
