Paytm reported Q2 FY26 revenue of ₹2,061 crore, a 24% year-on-year increase, but net profit plummeted 98% to ₹21 crore due to higher operational expenses. Analysts note that while revenue growth indicates strong digital payment adoption, cost pressures from scaling operations and marketing significantly impacted profitability. The company continues diversifying revenue streams and investing in technology upgrades. Investors are closely monitoring margins, user growth, and transaction volumes. Market experts emphasize that operational efficiency and controlled expenditure will be crucial for sustaining long-term growth and investor confidence in Paytm.