Paytm Q2 Results: Profit Slumps As Exceptional Loss Weighs, Revenue Up 7.5%

Paytm parent One 97 Communications Ltd.'s net profit for the second quarter of FY26 slumped 83% sequentially, weighed down by exceptional items, according to an exchange filing on Tuesday.

The company reported a consolidated bottom line of Rs 21 crore against Rs 123 crore in the previous quarter.

In its filing, Paytm noted that it recorded an impairment loss against a loan given to the joint venture First Games Technology Pvt Ltd. of Rs 190 crore during the quarter and six-month period ended Sept. 30.

"Consequent to the enactment of the Promotion and Regulation of Online Gaming Act, 2025 (the Act), which prohibits online gaming, the Group has recorded an impairment loss against a loan given to the JV of INR 190 crores during the quarter and six-month period ended September 30, 2025," it said.

The revenue for the quarter under review rose 7.5% to Rs 2,061 crore from Rs 1,918 crore in the first quarter.

Notably, earnings before interest, taxes, depreciation and amortisation saw a massive jump of 95.8% to Rs 141 crore from Rs 72 crore, while Ebitda margin expanded to 6.8% from 3.8% in the last quarter.

In the quarter under review, indirect expenses (including ESOP Cost) was down 18% year-on-year and 1% sequentially to Rs 1,064 crore.

• Net profit down 82.9% at Rs 21 crore versus Rs 123 crore

• Revenue up 7.5% at Rs 2,061 crore versus Rs 1,918 crore

• Ebitda up 95.8% at Rs 141 crore versus Rs 72 crore

• Margin at 6.8% versus 3.8%

The company announced that it will be investing Rs 2,250 crore in its arm Paytm Payments Services.

Paytm's stock ended in the red, 0.53% lower at Rs 1,268 apiece on Tuesday on the NSE, compared to a 0.64% decline in the Nifty index. The share price has risen 24.58% year-to-date and 66.85% in the last 12 months.