Paytm earnings for the second quarter of fiscal 2027 showed revenue rising 28% from a year earlier, as the fintech company reached operating break-even. JPMorgan maintained its Overweight rating and ₹2,100 price target, citing growth and improved margins.

Paytm earnings and customer growth

Revenue growth was 33% when excluding Payment Infrastructure Development Fund incentives. Financial services revenue rose 49%, followed by marketing services at 26% and payments at 25%.

Monthly transacting users increased 13% year over year, compared with average growth of 8% over the preceding three quarters. Merchant device deployments rose 19% from a year earlier.

JPMorgan said revenue and margins exceeded its expectations. Contribution margin rose 71 basis points from the previous quarter to 55.9%, while EBITDA margin increased 190 basis points to 10.2%.

JPMorgan flags costs in its outlook

The brokerage pointed to slowing gross merchandise value growth and potential near-term pressure from higher default loss guarantee costs. It nevertheless expects EBITDA to continue expanding despite those expenses.

JPMorgan forecast an EBITDA margin of 23% by fiscal 2029, supported by improving UPI economics. That is the brokerage’s projection, not a reported result or company guidance.

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