PAYTM Q2 CONCALL : REVENUE GROWS 28% YOY, PAYMENT MARGIN IMPROVES TO 9 BPS; POTENTIAL UPI MDR BENEFIT OF ₹700 CR+ ANNUALISED, MANAGEMENT EXPECTS FURTHER EBITDA GROWTH

• MANAGEMENT EXPECTS POTENTIAL INCREMENTAL PAYMENT-PROCESSING MARGIN OF APPROXIMATELY 2.5 BPS FROM PROPOSED UPI MDR CHANGES, WITH FULL BENEFITS BUILDING OVER 2–3 QUARTERS AFTER IMPLEMENTATION • MANAGEMENT ESTIMATES 2.5 BPS ADDITIONAL MARGIN ON APPROXIMATELY ₹28 LAKH CR GMV COULD GENERATE OVER ₹700 CR IN ANNUALISED BENEFITS, SUBJECT TO REGULATORY IMPLEMENTATION • MANAGEMENT EXPRESSED CONFIDENCE IN CONTINUED SEQUENTIAL GROWTH IN ABSOLUTE EBITDA, DESPITE EXPECTED NEAR-TERM DLG-RELATED EXPENSES • MANAGEMENT TARGETS INDIRECT EXPENSE GROWTH AT LESS THAN HALF THE RATE OF CONTRIBUTION MARGIN GROWTH OVER THE NEXT 3–4 QUARTERS • MANAGEMENT AIMS TO EXPAND CONSUMER UPI MARKET SHARE TOWARD ONE-THIRD OF THE MARKET THROUGH PRODUCT IMPROVEMENTS, PARTNERSHIPS & CUSTOMER ACQUISITION • Q2 REVENUE GREW 28% YOY FOR THE SECOND CONSECUTIVE QUARTER, WITH COMPARABLE GROWTH IN THE 30% RANGE EXCLUDING PREVIOUS-YEAR PIDF REVENUE • NET PAYMENT MARGIN IMPROVED TO APPROXIMATELY 9 BPS FROM 8.5 BPS, SUPPORTED BY BETTER PRICING, ENTERPRISE SOLUTIONS & HIGHER-VALUE PAYMENT SERVICES • MERCHANT PAYMENT GMV REMAINED BROADLY FLAT QOQ, PARTLY DUE TO EXITING OR RENEGOTIATING LOW-MARGIN ENTERPRISE CONTRACTS • COMPANY DEPLOYED APPROXIMATELY 7 LAKH MERCHANT DEVICES DURING Q2, WHILE DEVICE-RELATED CAPEX STOOD AT AROUND ₹400 CR IN H1 FY27 • MANAGEMENT HIGHLIGHTED APPROXIMATELY 5 MILLION ADDITIONAL MONTHLY TRANSACTING USERS DURING Q2, REFLECTING IMPROVING CONSUMER ACQUISITION MOMENTUM • MERCHANT LENDING REMAINS A KEY GROWTH DRIVER, WITH MANAGEMENT FOCUSING ON CROSS-SELLING FINANCIAL SERVICES TO ITS ESTABLISHED MERCHANT BASE OF APPROXIMATELY 15–16 MILLION • RELAUNCHED POSTPAID BUSINESS IS ALREADY CONTRIBUTION-LEVEL EBITDA POSITIVE, WHILE CONSUMER PERSONAL LOAN DISTRIBUTION IS EXPANDING WITHOUT MANDATORY DEFAULT-LOSS GUARANTEES • MANAGEMENT EXPECTS ONE MAJOR LENDING PARTNER TO RESUME DLG ARRANGEMENTS, CREATING UPFRONT EXPENSES WHILE RELATED LENDING REVENUE ACCRUES OVER TIME • COMPANY IS DEVELOPING AI-POWERED MERCHANT SERVICES, WITH MEANINGFUL MONETISATION EXPECTED TO TAKE ANOTHER 2–3 QUARTERS OR LONGER; BOARD HAS AUTHORISED UP TO ₹500 CR FOR POTENTIAL INVESTMENTS OVER 12 MONTHS • MANAGEMENT REMAINS POSITIVE ON PAYMENTS MONETISATION, MERCHANT LENDING & OPERATING LEVERAGE, BUT UPI MDR IMPLEMENTATION TIMING, FLAT MERCHANT GMV, DLG COSTS, TECHNOLOGY SPENDING & DEVICE CAPEX REMAIN KEY RISKS

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