What was filed
One 97 Communications, the parent of Paytm, filed its earnings release for the quarter and half-year ended September 30, 2026 (Q2 FY27) with the exchanges under Regulation 30. The release covers consolidated financial performance alongside operational metrics across the merchant and consumer businesses. An earnings call is scheduled for October 27, 2026.
The quarter marks a sustained swing to reported profitability, aided in part by the absence of the large exceptional items that weighed on the year-ago quarter — the filing records exceptional items of ₹190 crore in Q2 FY26 against ₹4 crore this quarter.
Where the growth came from
Per the filing, revenue growth was led by the Distribution of Financial Services line and continued expansion in payments. The company reported its sixth consecutive quarter of consumer payment market-share gain and continued growth in subscription (Soundbox) merchants.
The filing also flags a comparability point: Q2 FY26 included Payments Infrastructure Development Fund (PIDF) incentives, discontinued at the end of December 2025. Excluding PIDF, the company said revenue grew 33% year-on-year and comparable EBITDA margin moved from 3% to 10%. It attributes margin expansion to AI-led operating leverage, with indirect expenses falling to 46% of revenue from 52% a year earlier.
Costs, cash and what to watch
The filing discloses that Default Loss Guarantee (DLG) costs — recognised upfront while the associated revenue is recognised over the life of the loan — have risen since Q1 FY26 and "will increase materially from Q3 FY 2027," as Paytm has resumed DLG with its largest lending partner. Management states it expects contribution margin to decline in Q3 but EBITDA to continue improving.
On regulation, the company notes NPCI's recently notified MDR framework for UPI, to be implemented after Diwali, and frames any MDR as an upside rather than the foundation of its business. The release separately records a large cash position and states the company intends to remain well-capitalised while evaluating organic and inorganic opportunities.