The group posted a Q2 net profit of ₹226 crore, a 10.8‑fold jump from ₹21 crore a year earlier, and revenue climbed 28.5% YoY to ₹2,648 crore. EBITDA surged 91.5% to ₹270 crore, lifting the margin to 10.2% from 6.8% in the prior year.
Merchant activity grew with GMV rising 26% YoY to ₹7.1 lakh crore and the merchant‑subscription base adding 27 lakh, bringing total paying merchants to 1.64 million. Net payment revenue, excluding PIDF incentives, rose 21% YoY, and the payment‑processing margin stayed above four basis points.
Contribution margin eased slightly to 56% from 57% YoY after PIDF incentives were removed, while the DLG cost spike and higher card‑processing share are expected to drag the margin in the December quarter. Despite that, the company projects a continued improvement in EBITDA.
Capital outlay on devices hit ₹400 crore in H1 FY27, driven by a shift from refurbished to new hardware and upgraded merchant devices. Income‑tax expense climbed to ₹67 crore, largely due to a ₹34 crore deferred‑tax hit on interest income from a subsidiary. The group plans to inject up to ₹1 billion into Paytm Cloud Technologies and Paytm Singapore over the next year.
Looking ahead, the company expects a 2.5 bp uptick in payment‑processing margin once the MDR cap of 0.4% takes effect post‑Diwali. It also signals stronger EBITDA in the next quarter while monitoring the impact of higher DLG costs and seasonal card‑processing volumes.