Paytm Share Price Falls Over 1% Despite Q2 FY27 Profit Jump
· Free Press Journal
Paytm shares declined more than 1% during morning trading on Tuesday despite the fintech company reporting strong profit growth for the second quarter of FY27.
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Shares of One 97 Communications, Paytm's parent company, slipped 1.3% to ₹1,633 after gaining approximately 1% earlier in the session.
The stock had risen 2.4% on Monday ahead of the earnings announcement.
Despite Tuesday's decline, Paytm shares have gained 26.5% so far in 2026, outperforming the Nifty 50, which has fallen 13% during the same period.
The company's market capitalisation stood at approximately ₹1.05 lakh crore.
Paytm Parent One 97 Communications To Infuse ₹500 Crore Into Cloud Subsidiary, Outlines MDR ImpactPaytm Q2 Profit Jumps To ₹226 Crore
Paytm reported a net profit of ₹226 crore for the July-September quarter, compared with ₹21 crore in the corresponding period last year.
Revenue increased 28.5% year-on-year to ₹2,648 crore, reflecting improved business performance.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 91.5% to ₹270 crore.
The company's EBITDA margin improved to 10.2% from 6.8%, indicating stronger operating profitability.
The results prompted positive assessments from brokerages, which highlighted earnings growth and improving margins.
However, the stock failed to sustain its initial gains amid weakness in the broader market.
Proposed UPI MDR Could Support Paytm's Payment Margins
Paytm expects the proposed merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions to improve its overall payment processing margin by approximately 2.5 basis points.
According to the company, the proposed measure is scheduled for implementation after Diwali.
Management expects the financial impact to stabilise within two to three quarters following implementation.
The potential additional revenue stream has supported the positive brokerage outlook despite near-term share price volatility.
Meanwhile, broader market indices traded lower during the morning session.
Investors will be watching whether Paytm can sustain its profitability improvements and benefit from any changes to UPI transaction charges.