Paytm's stellar performance in the second quarter of FY26 has earned praise from brokerage firm Morgan Stanley, citing improved payment processing margins, robust lending revenue growth, and disciplined cost control as pillars of its profitability surge. EBITDA saw a remarkable rise to Rs 1.4 billion, up from Rs 0.7 billion last quarter, reflecting a significant operational turnaround.

The firm's report highlighted a strong 24% year-on-year revenue increase, with potential for further growth as consumer unsecured lending gains momentum. An improved payment GMV mix, particularly towards cards on UPI and EMI-backed payments known for higher margins, coupled with declining processing costs, has bolstered the company's financial position. Financial services experienced a 63% YoY rise, driven

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