Paytm Partners with US AI Firm Groq to Enhance Real-Time Payment Intelligence; Q2 Profit Drops Significantly

One 97 Communications, the parent company of Paytm, has announced a strategic partnership with US-based artificial intelligence company Groq. This collaboration aims to leverage Groq's advanced AI technology, specifically its Language Processing Unit (LPU), to enhance Paytm's real-time artificial intelligence capabilities for its payments and financial services ecosystem. The integration is expected to deliver faster, more cost-efficient AI inference compared to traditional GPU systems. Paytm has been actively deploying AI in areas like risk modelling, fraud prevention, customer onboarding, and personalization. This new partnership with Groq is intended to build a robust foundation for future data-driven growth by enabling real-time inference at scale.

In a separate announcement, One 97 Communications reported its Q2FY26 financial results. The consolidated net profit saw a substantial decrease to Rs 21 crore, down from Rs 928 crore in Q2FY25. This decline is attributed to an exceptional gain recorded in the prior year's quarter from the sale of its entertainment ticketing business to Zomato. Sequentially, profit also fell by 83% from Q1FY26. Despite the profit drop, the company's revenue for Q2FY26 increased by 24.43% year-on-year to Rs 2,061 crore, driven by growth in its core payments and financial services segments. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) improved to Rs 142 crore, with a margin of 7%, reflecting revenue growth and operational efficiency. Shares of One 97 Communications closed down 3.12% at Rs 1,268.25 on November 4.

Impact: This partnership could significantly boost Paytm's technological edge in AI-driven services, potentially leading to improved customer experience and operational efficiency, which may positively impact its long-term growth prospects and investor confidence. The financial results, particularly the profit decline, could create short-term investor concerns, though revenue growth and improved EBITDA are positive indicators. Impact rating: 7/10.

Difficult Terms: Artificial Intelligence (AI): Technology that enables computers to perform tasks that typically require human intelligence, such as learning, problem-solving, and decision-making. Language Processing Unit (LPU): A specialized chip designed by Groq to accelerate artificial intelligence workloads, particularly language processing tasks, offering faster inference speeds. AI Inference: The process of using a trained AI model to make predictions or decisions on new data. Graphics Processing Unit (GPU): A specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device. In AI, they are commonly used for training and inference. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance.