Key Financial Performance

Quarterly Performance (Q2 FY2027):

  • Revenue from Operations: ₹2,648 Cr, up 28% YoY from ₹2,061 Cr
  • EBITDA: ₹270 Cr, up 90% YoY from ₹142 Cr
  • EBITDA Margin: 10% vs 7% in Q2 FY2026 (331 bps improvement)
  • Contribution Profit: ₹1,479 Cr, up 23% YoY
  • Contribution Margin: 56% vs 59% in Q2 FY2026
  • Profit for Period: ₹225 Cr vs ₹21 Cr in Q2 FY2026 (971% increase)

Half-Year Performance (H1 FY2027):

  • Revenue from Operations: ₹5,096 Cr, up 28% YoY from ₹3,979 Cr
  • EBITDA: ₹473 Cr, up 121% YoY from ₹214 Cr
  • Profit for Period: ₹445 Cr vs ₹144 Cr in H1 FY2026

Segment-wise Revenue (Q2 FY2027):

  • Payment Services: ₹1,434 Cr (25% YoY growth)
  • Distribution of Financial Services: ₹912 Cr (49% YoY growth)
  • Marketing Services: ₹287 Cr (26% YoY growth)
  • Other Operating Revenue: ₹15 Cr (81% decline)

Operational Metrics

  • Registered Merchants: 5.2 Cr (10% YoY growth)
  • Subscription Merchants including devices: 1.64 Cr (19% YoY growth)
  • GMV: ₹7.1 Lakh Cr (26% YoY growth)
  • Merchant Transactions: 1,785 Cr (23% YoY growth)
  • Total Transactions: 2,156 Cr (30% YoY growth)
  • Monthly Transacting Users (MTU): 8.5 Cr (13% YoY growth)
  • Key Financial Services Customers: 8.8 Lakh (35% YoY growth)
  • Average Number of Sales Employees: 51,832 (17% YoY growth)

AI-Driven Operating Leverage

Total Indirect Expenses grew 14% YoY to ₹1,209 Cr, slower than revenue growth, improving as percentage of revenue from 52% to 46%:

  • Marketing costs: ₹99 Cr (38% YoY increase)
  • Employee costs: ₹759 Cr (15% YoY increase)
  • Software, cloud & data centre: ₹211 Cr (59% YoY increase)
  • Other indirect expenses: ₹140 Cr (29% YoY decrease)

Financial Services Distribution Performance

Merchant loan distribution showed strong growth with:

  • 35% YoY growth in key financial services customers to 8.8 Lakh
  • Repeat borrower mix >50% of merchant loan disbursements
  • Revenue from financial services distribution reached ₹912 Cr (49% YoY growth)

Cash Position and Capital Structure

As of September 30, 2026:

  • Cash and Bank Balances: ₹7,116 Cr
  • Deposits with banks: ₹5,608 Cr
  • Investments: ₹5,178 Cr
  • Total Balances: ₹17,902 Cr
  • Total Balance (excluding PML and Escrow): ₹12,917 Cr
  • Prefunded balance from PPSL: ₹700 Cr
  • Total Cash Balance: ₹13,617 Cr

DLG Model Impact

The company resumed DLG (Deferred Loan Guarantee) with largest lending partner in Q3 FY2027, well below permitted 5% limit. DLG costs recognized upfront while corresponding revenue recognized over loan life, affecting short-term profitability but expected to improve medium to long-term profitability.

UPI MDR Potential Impact

Based on proposed cap of 0.4% MDR on select payments above ₹2,000 for non-industry merchants, company expects indicative uplift of approximately 2.5 bps in overall Payment Processing Margin (currently comfortably above 4 bps).

Tax Expense Details

Income tax expense increased to ₹67 Cr in Q2 FY2027 from ₹27 Cr in Q1 FY2027, primarily due to additional deferred tax impact of ₹34 Cr recorded on completion of Group's assessment of income tax on interest income pertaining to one subsidiary. Excluding this impact, tax expense stood at ₹33 Cr.

Comparable Performance (Excluding PIDF)

Excluding PIDF incentive which was discontinued in December 2025:

  • Operating Revenue growth: 33% YoY vs 28% reported
  • EBITDA Margin: 10% vs 3% in Q2 FY2026 (637 bps improvement vs 331 bps reported)
  • Contribution Margin: 56% vs 57% in Q2 FY2026 (135 bps decline vs 271 bps reported)

ESOP Pool Status

As of October 26, 2026:

  • Basic shares outstanding: 64.2 Cr
  • ESOPs vested and unexercised: 0.2 Cr
  • ESOPs granted and unvested: 0.8 Cr
  • ESOPs available for distribution: 2.7 Cr
  • Estimated fully diluted shares: 67.9 Cr

Loan Distribution Metrics (Indicative)

For Merchant Loans in Sep 2026 quarter:

  • Bucket 1 Resolution %: 83% to 90%
  • Recovery Rate Post 90+: 30% to 35%
  • Expected Credit Loss (ECL)%: 4.5% to 5.0%

Governance Updates

Company strengthened board with four new directors over past year with expertise across financial services, technology, and AI. Adopted conservative policies for revenue recognition, impairments, and compliance.