Paytm has reported a remarkable Rs 1,828 crore in operating revenue for Q3 FY25, reflecting a strong 10% quarter-on-quarter (QoQ) growth. The company’s Profit After Tax (PAT) saw significant improvement, rising by Rs 208 crore QoQ to Rs (208) crore, further demonstrating Paytm’s commitment to profitability while scaling its business.
Paytm’s payments business recorded an 8% QoQ increase in revenue, reaching Rs 1,059 crore. This growth was fueled by a 13% QoQ rise in Gross Merchandise Value (GMV), which reached Rs 5 lakh crore. The company’s merchant subscriber base for payment devices grew to 1.17 crore, adding 5 lakh new subscribers in the quarter, reflecting the growing adoption of its innovative payment solutions.
The financial services segment also showed stellar performance, with revenue increasing by 34% QoQ to Rs 502 crore. This growth was driven by higher merchant loan disbursements and improved collection efficiencies. Paytm’s Default Loss Guarantee (DLG) model gained further traction, supporting sustainable growth in loan distribution.
Paytm’s cash balance grew by Rs 2,851 crore QoQ, reaching Rs 12,850 crore. This increase was driven by the strategic sale of its stake in PayPay and improved working capital efficiencies.
The company continued to focus on optimizing operations, successfully reducing indirect expenses by 7% QoQ and 23% year-on-year (YoY), bringing them down to Rs 1,000 crore. The reduction in employee and marketing costs played a significant role in this achievement.
EBITDA before ESOP costs improved by Rs 145 crore QoQ, reaching Rs (41) crore, supported by revenue growth, better contribution profit, and lower indirect expenses. Paytm remains focused on leveraging its innovative product portfolio, expanding its merchant and consumer base, and driving operational efficiencies.
With strong momentum in both its payments and financial services segments, Paytm is well-positioned to capitalize on the expanding digital economy in India. The company is poised for continued growth as it navigates the evolving landscape of the country’s digital payments and financial services sectors.
