Paytm's Impressive Q3 FY25 Results: A Leap Towards Profitability

Paytm's Q3 FY25 saw revenue hit Rs1,828 crore with a notable 10% QoQ growth. Profit After Tax improved by Rs208 crore, highlighting its profitability focus. Increased cash balance from strategic sales and optimized operations bolstered its financial health. Paytm emphasized growth in digital payments and financial services.

In a remarkable display of financial robustness, Paytm's operating revenue soared to Rs1,828 crore in Q3 FY25, marking a formidable 10% quarter-on-quarter growth. The Profit After Tax significantly improved by Rs208 crore, now at Rs(208) crore, showcasing the company's strategic push towards achieving profitability.

The quarter's progress underscores Paytm's unwavering dedication to expanding its footprint in the mobile and QR payments sector, further solidifying its pioneering status. A pivotal driver was the rise in cash balance to Rs12,850 crore, attributed to strategic divestments in PayPay and optimized working capital.

Growth in Paytm's payments business was underscored by an 8% QoQ revenue increase to Rs1,059 crore, driven by a 13% surge in Gross Merchandise Value to Rs5.0 lakh crore. The addition of 5 lakh new merchant subscribers, raising the base to 1.17 crore, highlights the rising adoption of its payment solutions.

The financial services division witnessed a 34% QoQ revenue surge to Rs502 crore, fueled by increased merchant loan disbursements and enhanced collection efficiencies. The success of its Default Loss Guarantee (DLG) model further strengthened its sustainable growth in loan distribution.

Operational efficiencies were evident as Paytm cut indirect expenses by 7% QoQ and 23% YoY to Rs1,000 crore, thanks to reduced employee and marketing costs. Improved EBITDA before ESOP costs, now at Rs(41) crore, was driven by revenue growth and lowered indirect expenses.

As Paytm remains focused on leveraging its innovative product range and expanding both merchant and consumer bases, it is strategically positioned to seize opportunities within India's burgeoning digital economy. With sustained momentum in both payments and financial services, the company looks well-prepared for future growth. (ANI)

(With inputs from agencies.)