Key Takeaways from Our Q2FY26 Earnings Call: Building AI-Driven Efficiency and Expansion, Driving Sustainable Profits

We have reported growth across revenue, profitability, and operating metrics in Q2 FY2026, reinforcing the strength of our business model. Our AI-led opportunities continue to drive profitable growth and improve margins, further building the foundation for sustained long-term expansion.

During our recent earnings call, Founder and CEO Vijay Shekhar Sharma, and President and Group CFO Madhur Deora shared key insights into our operating performance, highlighting the central role of AI across business functions and our roadmap for future growth.

AI at the Core of Paytm’s Growth

Speaking on building with AI, Vijay Shekhar Sharma said: “AI is a core part of our business model. We’re actively building with it, across product and feature sides. There is a tremendous amount of AI opportunity we are seeing and continue expanding with the technology across our infrastructure and other use cases.”

At present, AI continues to drive product developments, merchant offerings, driving operational efficiencies and enhancing overall processes.

Democratising Access to Financial Services

Vijay also spoke about broadening our financial services portfolio and international expansion, “The product and technology we’ve built in India are scalable and can be replicated globally. We’re expanding our financial services by adding stock brokerage, and eventually, insurance will be a part of this offering as well. We’re also evaluating international markets to take our payment services global.”

This expansion aligns with our vision of democratizing financial services for consumers and merchants, he mentioned.

On strengthening Paytm Postpaid, he added: “Our goal has always been to democratise financial services. While Postpaid is currently limited by bank tie-ups, we’re actively working to onboard more. The response so far has been very encouraging.”

AI as Key Revenue Driver

Vijay further highlighted how AI enhances revenue opportunities: “AI is a key revenue driver, helping us optimise costs and unlock phenomenal new business opportunities. With our large merchant base, we see significant potential to create AI-driven cross-sell opportunities. We also expect the Cloud component, which is our key AI component, to expand further.”

Adding to this, Madhur Deora shared: “From a financial planning standpoint, AI also gives us better insights on existing products apart from adding new revenue line items. For example, with better insights it’s improving our collection performance experience for lending partners, enabling more revenue and lower costs on existing products.”

Building AI for small businesses

Vijay also spoke about empowering small businesses with AI: “Paytm is building AI-powered agents for small businesses, offered through a subscription model. These agents will provide merchants with insights on revenue, competition, and marketing essentially speaking the language of their customers to drive real business growth. We’re excited to see the diverse use cases that emerge from these pilots.”

Merchant Business Growth and Sustainable Profitability

On the merchant side, Madhur Deora added: “We’ve made strong progress in how we approach pricing and merchant-level profitability. We’re flexible in how we derive margins from merchants, and ultimately, our team and salesforce ensure that merchants stay profitable, which is a healthy and sustainable way to run the business.”

Talking about improving customer experience, our Founder added, “We care deeply about quality, and our focus is also on improving the experience for our high-quality, loyal customer base. Our ‘Gold Coins’ loyalty program is a key part of this. It’s designed to be a product people love. For users not moving to mutual funds, gold investments are becoming the preferred choice.”

This quarter’s performance reflects disciplined execution, strong product fundamentals, and a clear vision fueled by AI innovation. As we continue to scale financial services, enhance merchant offerings, and explore international expansion, AI remains at the center of our growth trajectory.