Paytm Q2 Results: Loss Narrows, Revenue Jumps 8%

Of the company's total revenue, its payment business contributed about Rs 1,524 crore and the loan distribution segment contributed Rs 571 crore.

The company's Ebitda before ESOP costs, that is its earnings excluding share-based payments, has also risen to Rs 153 crore from Rs 81 crore in the previous quarter.

"Revenue growth was led by increase in gross merchandise value, merchant subscription revenues, and growth of loans distributed through our platform. There are no UPI incentives booked during the quarter," the Noida-based company said in a statement alongside the earnings.

Paytm said its net payment margin has gone up 60% year-on-year to Rs 707 crore due to an increase in payment processing margin and merchant subscription revenue. It also said the Rupay credit card on UPI is "seeing good adoption by consumers". "We believe, over a longer period of time, this has a potential of becoming a decent revenue stream for UPI payments," it said.

Shares of Paytm ended 1.93% higher on Friday at Rs 987.35 apiece, as compared with a 0.35% decline in the benchmark Sensex.