Paytm Share Price Today Falls Despite 976% Jump in Q2 Profit; Should You Buy? Check Jefferies' Target Price

Paytm shares traded lower on Tuesday, October 27, despite the fintech company's strong second-quarter results for FY27, which showed a sharp increase in net profit, higher revenue and an improvement in operating performance.

Paytm Share Price Today After One 97 Communications Reports 976% Jump in Q2 Net Profit

One 97 Communications Ltd, the parent company of Paytm, was trading at Rs 1,644.10 on the NSE at 9:57 am on Tuesday. The stock opened at Rs 1,670 and climbed to an intraday high of Rs 1,687.70 before slipping to a low of Rs 1,627.40. The early decline suggests that strong quarterly numbers alone were not enough to support the share price in morning trade.

Paytm Q2 Results FY27: Net Profit Jumps Nearly 10 Times

Paytm reported a consolidated net profit of Rs 226 crore for the July-September quarter of FY27, compared with Rs 21 crore in the corresponding quarter of the previous financial year. This represents an increase of approximately 976% year-on-year, meaning the company's reported profit was nearly 11 times its year-ago level.

However, the headline profit growth needs to be viewed in context. The September 2025 quarter included an exceptional expense of Rs 190 crore linked to a loan provided to a joint venture. This one-time charge had weighed on the previous year's reported profit, making the latest year-on-year comparison appear particularly strong.

After adjusting for the exceptional item, the company indicated that its net profit growth was closer to 30% year-on-year. This provides a more balanced picture of the improvement in its underlying profitability, rather than relying only on the headline increase.

Paytm Revenue Rises 28% in Q2FY27; Comparable Growth at 33%

Paytm's consolidated revenue from operations increased 28% year-on-year to Rs 2,648 crore in Q2FY27, compared with Rs 2,061 crore a year earlier. In simple terms, the company generated substantially more revenue from its business activities than it did in the same quarter last year.

The company also reported a comparable revenue growth rate of 33% after excluding the impact of the Payments Infrastructure Development Fund (PIDF) incentive in the previous year. On this adjusted basis, revenue stood at Rs 2,636 crore, against Rs 1,987 crore in Q2FY26.

The distinction matters because the previous year's PIDF incentive affects the base used for comparison. Looking at revenue after this adjustment offers investors a clearer view of the growth generated by Paytm's business operations.

Paytm EBITDA Jumps; Operating Margin Improves to 10%

Paytm also delivered an improvement in its operating performance, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising to Rs 270 crore in Q2FY27 from Rs 143 crore in the year-ago quarter. This represents growth of nearly 90%.

EBITDA is a measure of operating profitability that helps investors understand how a business performs before accounting for interest, taxes, depreciation and amortisation. The increase suggests that Paytm generated stronger operating earnings alongside its revenue growth.

Its reported EBITDA margin also improved to 10% from 7% a year earlier. The margin indicates how much operating profit the company earns for every Rs 100 of revenue. At a 10% margin, Paytm generated around Rs 10 in EBITDA for every Rs 100 of revenue, compared with Rs 7 in the year-ago quarter.

After excluding the PIDF impact, EBITDA rose 279% year-on-year to Rs 258 crore from Rs 68 crore. The comparable EBITDA margin expanded to 10% from 3%, indicating a substantial improvement in operating profitability on an adjusted basis.

Should You Buy Paytm Stock? Check Top Brokerage's Recommendation

Jefferies reiterated its Buy call on Paytm, setting a target price of Rs 2,150. The brokerage expects the fintech firm's growth to remain strong, with sales staff rising 19% quarter-on-quarter as it steps up investment in merchant acquisition and distribution.

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