Paytm Q2 Profit Plunges 98% YoY To INR 21 Cr

Fintech major Paytm maintained its profitability edge in Q2 FY26, despite a substantial decline both on a year-on-year (YoY) and a sequential basis. The company’s PAT stood at INR 21 Cr during the quarter under review, down 98% YoY from INR 930 Cr in the year-ago quarter.

Important to note that the company reported a profit in Q2 FY25 on account of a one-time gain of INR 1,345 Cr pertaining to sale of its entertainment ticketing business, Paytm Insider, to Eternal in the quarter.

On a sequential basis, the company’s profit declined 83% from INR 123 Cr in Q1 FY26.

The decline in profits come despite a substantial uptick in the company’s top line in the quarter under review. Operating revenue surged 24% YoY and 7% QoQ to INR 2,061 Cr in Q2 FY26.

Including other income of INR 222 Cr, Paytm’s total revenue for the quarter stood at INR 2,283 Cr. Meanwhile, its expenses declined 8% YoY to INR 2,062 Cr.

Besides, the company’s Q2 bottom line was also impacted by an exceptional loss of INR 190 Cr. On September 30, the company recorded an impairment loss of INR 190 Cr against a loan given to its real money gaming joint venture First Games.

“Consequent to the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which prohibits online gaming, the Group has recorded an impairment loss against a loan given to the JV of INR 190 Cr during the quarter,” Paytm said.

(The story will be updated shortly.)

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