- Paytm expects payment margin impact from UPI MDR to stabilize in 2-3 quarters
- Q2 FY27 net profit rose 2.7% sequentially to Rs 226 crore
- Revenue increased 8.2% to Rs 2,648 crore quarter-on-quarter
Paytm parent One97 Communications Ltd. has given investors a timeline for how long it expects the dust to take to settle following the rollout of the UPI Merchant Discount Rate.
The company said it anticipates its payment processing margin widening by 2.5 basis points as a result of the MDR implementation, but cautioned that the full financial outcome of this shift would only become clear and consistent after a window of two to three quarters, suggesting near-term results may still carry some volatility tied to the transition before settling into a steadier pattern.
Q2 Results Provide The Backdrop
The guidance came alongside Paytm's second-quarter results for financial year 2027. Net profit rose 2.7% sequentially to Rs 226 crore, up from Rs 220 crore in the preceding quarter. Revenue climbed 8.2% quarter-on-quarter to Rs 2,648 crore, compared to Rs 2,448 crore previously.
Ebitda saw a sharper jump of 33%, rising to Rs 270 crore from Rs 203 crore, while the Ebitda margin expanded by 190 basis points to 10.2%, up from 8.3% in the prior quarter, pointing to improving operational efficiency even as the company navigates the ongoing MDR-related changes to its core payments business.
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Fresh Investments In Cloud Tech, Singapore Arm
Alongside the results, Paytm's board signed off on fresh capital allocation, approving investments of Rs 500 crore each into its Paytm Cloud Tech unit and its Singapore-based arm.
The move signals continued investment into both the company's technology infrastructure and its international footprint, even as domestic payment economics remain in a period of adjustment.
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Share Price Movement
Shares of One97 Communications rose 2.39% to close at Rs 1,654.70 on Monday, outpacing the Nifty 50's more modest 0.68% gain for the session.
The stock opened at Rs 1,609.50, against a previous close of Rs 1,616.10, and traded in a range between Rs 1,582.40 and Rs 1,662.40 through the day.
Over the past 52 weeks, the stock has moved between a low of Rs 930.60 and a high of Rs 1,855.50, and currently stands up 28.57% on a year-on-year basis. One97 Communications now carries a market capitalisation of Rs 78,186.71 crore.
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