Paytm’s Q2 EBITDA surged to ₹270 crore, a 91.5% jump from ₹141 crore in the same period last year, while the margin climbed to 10.2% from 6.8%—a lift that sent the stock down 2.7% to ₹1,614 on Tuesday.
Revenue hit ₹2,648 crore, up 28.5% YoY on a like‑for‑like basis, beating the 22% consensus estimate. Net profit rose to ₹225 crore, a stark increase from ₹21 crore, but the figure is still affected by a ₹190 crore impairment recorded in the prior year.
Financial‑services revenue grew 49% YoY and marketing‑services revenue jumped 26%. EBITDA rose 33% sequentially, while net profit climbed 2.3% quarter‑on‑quarter, illustrating a shift towards higher‑margin services despite a flat payment‑GMP growth of 25% YoY.
Goldman Sachs kept its Buy rating with a target of ₹2,010, projecting a 21.5% upside, citing a 28% YoY revenue rise and expected 2.5 basis‑point lift in merchant‑discount rates from UPI. Citi, meanwhile, targets ₹1,940, a 17.2% upside, and notes a 0.5‑bp increase in net‑payment margins that surpasses its 0.3‑bp estimate.
The company plans to monetize UPI MDR starting FY28, potentially adding ₹800–₹900 crore to EBITDA, and has earmarked ₹500 crore for Paytm Cloud, signalling a focus on tech investments that could influence the next fiscal’s earnings trajectory. as per the BSE filing.