PAYTM's Q2 FY27 numbers came in strong, with revenue of Rs. 2,648.00 Cr (+28.48% YoY) and PAT growth of +971.43% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 26, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 2,648.00 Cr (+28.48% YoY) |
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| PAT (Q2) | Rs. 225.00 Cr (+971.43% YoY) |
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| EBITDA margin | 10.20% (+336 bps YoY) |
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| EPS (Q2) | Rs. 3.52 (+966.67% YoY) |
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| Market cap | Rs. 106,519.80 Cr |
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| CMP | Rs. 1,654.70 |
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Quarter Snapshot
Paytm delivered 28.48% YoY revenue growth with EBITDA margin expanding to 10.20% (from 6.84% YoY), the fifth consecutive profitable quarter, and all FY27 management targets tracking — H1 revenue growth of 28.07% already exceeds the >22% FY27 guidance pace. The MDR uplift (~2.5 bps indicative PPM, post-Diwali) is incremental upside not in the planning base, while negative H1 FCF of Rs.19 Cr, a rising effective tax rate, and the pending Rs.611 Cr FEMA SCN are the main watch items.
Key Investment Insights
Key Positives
- Revenue from operations grew 28.48% YoY to Rs.2,648 Cr; H1 FY27 revenue of Rs.5,096 Cr is +28.07% YoY, ahead of the >22% FY27 guidance pace
- EBITDA margin expanded to 10.20% from 8.29% in Q1 and 6.84% a year ago; EBITDA of Rs.270 Cr grew +91.49% YoY and +33.0% QoQ
- Indirect-opex proxy grew +21.84% YoY vs revenue +28.48%, consistent with management's guidance that indirect expenses grow significantly slower than revenue
- H1 CFO of Rs.415 Cr vs Rs.44 Cr a year ago; CFO/PAT of 0.93×, up from prior settlement-timing swings
- Normalized PAT of Rs.256.08 Cr grew +21.36% YoY against management's stated Q2 FY26 pre-one-time PAT of Rs.211 Cr
- FGTPL GST demand finalized at Rs.704 Cr vs Rs.5,712 Cr proposed, with nil carrying value — no Group financial impact
- Cash-and-investments pool of Rs.18,008 Cr, up Rs.522 Cr from March 2026, with zero meaningful borrowings
- DLG limits expanded to Rs.940 Cr aggregate across six lenders, supporting capital-light lending distribution
Risk Factors
- Reported PAT was nearly flat QoQ (+2.27%) despite PBT +18.22% QoQ due to a Rs.28 Cr prior-period deferred tax charge and effective tax rate rising to 22.95% from 10.93%
- H1 free cash flow was negative Rs.19 Cr, with the EBITDA-vs-capex gap only Rs.39 Cr against management's 'EBITDA significantly higher than capex' FY27 framing
- Marketing (+59.02% YoY) and software/cloud/data centre (+58.65% YoY, +32.70% QoQ) costs are stepping up as fresh reinvestment
- FEMA SCN of ~Rs.611 Cr remains unresolved with an unquantified provision for compounding fees and Emphasis of Matter retained
- Other income declined 18.02% YoY to Rs.182 Cr as maturing investments are reinvested at lower yields
- H1 financial guarantee expense of Rs.180 Cr runs inside operating costs under the DLG distribution model