1. Opening Hook
When Vijay Shekhar Sharma starts talking about AI, you know it’s going to be less ChatGPT and moreChalo Growth Pe Bet Lagate Hain. Paytm’s Q2FY26 call was less about fintech metrics and more about a tech crusade — from retrained AI voice models to shopkeeper “agents” that talk like Siri, but hustle like Sharma.And just when you think it’s all buzzwords, he casually mentions replicating Paytm’s stack globally. Because why stop at UPI when you can export Indian fintech swagger?Stick around — this one had AI, EMI, and some serious ROI ambition. Things getveryspicy later. 😏
2. At a Glance
- Revenue up 25% YoY:Sharma calls it “democratized monetization.” We call it “finally, some numbers with the buzz.”
- EBITDA margin improved 150 bps:AI cost cuts finally doing something beyond writing jingles.
- Indirect costs down 8% QoQ:CFO’s version of a tight diet — sustainable, he swears.
- Merchant base +5,000 sales hires:Clearly “dominance” is the new discount.
- Postpaid relaunch live:Old flame, new partner — déjà vu with better credit filters.
- Devices cross 13 million:Soundbox 3.0 now talks, sings, and might soon do your taxes.
3. Management’s Key Commentary
“Our voice model is retrained and made in-house by our team.”(Translation: ChatGPT may be OpenAI; ours is ‘Open Sharma Initiative.’) 😏
“AI will be a revenue line item, not just cost saving.”(Translation: Expect ‘AI subscriptions’ soon — because buzzwords need billing.)
“Our financial stack can be replicated globally.”(Translation: Why stop with Paytm Japan? The world needs QR codes from Noida.)
“We hired 5,000 more people — wish it was 10,000!”(Translation: We’re profitable now, so why not burn calories and cash?)
“We will dominate the merchant ecosystem.”(Translation: Your kirana uncle now reports to Vijay bhai indirectly.)
“AI assistants will act as CFOs and CMOs for small shops.”(Translation: Sharma wants your pan shop to have more analytics than some startups.)
“Steady wins the race — no
rushing this time.”(Translation: We’ve learned from the ‘Postpaid crash diet’ of 2022.)
4. Numbers Decoded
| Metric | Q2FY26 | QoQ Change | Management Spin |
|---|---|---|---|
| Revenue | ₹3,100 Cr | +6% | “Festive magic meets EMI engineering.” |
| EBITDA | ₹210 Cr | +20% | “Discipline meets AI-assisted frugality.” |
| Payment Processing Margin | 4.2 bps | ↑ | “Credit instruments are the new caffeine.” |
| Device Base | 13.2 Mn | +8% | “Soundbox army expands — now with vocals.” |
| Net Payment Margin | +40 bps | ↑ | “Credit + EMI = sweet alchemy.” |
| Indirect Costs | ₹1,450 Cr | ↓ | “Marketing spend in rehab, finally.” |
(CFO swears the margins are “structural,” not festive sugar highs.)
5. Analyst Questions
Q:How sustainable are payment margins?A:“Very.” (Translation: Until Diwali next year, we’re safe.)
Q:How big is AI for you — cost or revenue?A:“Big revenue line item.” (Translation: If you can’t spell it, we’ll sell it.)
Q:What’s with 5,000 new sales hires?A:“We’re dominating merchants.” (Translation: We’ve entered our empire phase.)
Q:Postpaid 2.0 scaling fast?A:“Steady, not speedy.” (Translation: We’re not repeating the 2022 hangover.)
6. Guidance & Outlook
Management expects FY26
