One 97 Q2 FY27 Results (NSE: PAYTM)
Signal: Earnings grew
The read
The trajectory remains a profitability recovery: revenue reached ₹2,648 crore, +28.5% YoY and +8.2% QoQ, while PAT rose to ₹225 crore from ₹122 crore YoY. The next earnings inflection is MDR, which management expects to add approximately 2.5 bps to PPM, with the outcome stabilising over 2–3 quarters; current-quarter PAT also benefited from the absence of the ₹190 crore impairment recorded in the year-ago quarter.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,648 Cr | +28.5% | +8.2% |
| Net profit | ₹225 Cr | +84.4% | |
| EPS | ₹3.52 | +966.7% | |
| EBIT margin | N/A |
P&L walk
Revenue increased to ₹2,648 crore, +28.5% YoY and +8.2% QoQ, with profit before tax at ₹292 crore versus ₹220 crore a year ago; PAT of ₹225 crore was supported by operating improvement and a lower exceptional charge, while other income was flat QoQ at ₹182 crore.
Key positives
- Revenue reached ₹2,648 crore, +28.5% YoY and +8.2% QoQ, extending the recovery from ₹2,061 crore in Q2FY26.
- PAT increased to ₹225 crore from ₹122 crore YoY, while profit attributable to owners rose from ₹21 crore to ₹225 crore.
- Payments processing margin is already comfortably above 4 bps, with proposed MDR expected to add approximately 2.5 bps after implementation.
- H1FY27 operating cash flow was positive at ₹415 crore, supporting the reported profit quality.
Key concerns
- Marketing and promotional expense rose 59.0% YoY to ₹194 crore, materially faster than revenue growth of 28.5%.
- The filing does not disclose EBITDA, operating margin, GMV, paid customers or transaction volumes, limiting assessment of underlying platform economics.
- The consolidated group approved up to ₹500 crore of additional investment in PCTL over the next 12 months and a further ₹500 crore investment by PCTL in Paytm Singapore, creating execution and capital-allocation exposure.
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