Paytm reported a consolidated net profit of ₹21 crore in Q2 FY26, down sharply from ₹928 crore in the previous year, despite total revenue increasing 24.2% to ₹2,061 crore. The decline in profitability reflects higher operational and technology costs associated with scaling its payment solutions business. Analysts noted that Paytm continues investing heavily in customer acquisition, technology upgrades, and regulatory compliance. While revenues show sustained growth momentum, investors remain cautious about narrowing margins. The company aims to balance expansion with profitability and expects incremental gains from new digital payment partnerships.