Paytm reported a net income of Rs 2.26 billion in the second quarter, below the estimated Rs 2.58 billion. Revenue stood at Rs 26.5 billion, beating estimates of Rs 25.99 billion, while total costs rose 23 per cent year-on-year to Rs 25.3 billion. The company will invest an additional Rs 5 billion in its subsidiary, Paytm Cloud Technologies. Paytm also sees potential upside from merchant discount rate (MDR) in payment processing margins, with an indicative improvement of around 2.5 basis points in its overall payment processing margin (PPM).