Synopsis
On January 20, Paytm reported significant financial growth with a 10% rise in Q3 FY2025 operating revenue to Rs 1,828 crore, driven by its payments and financial services sectors, alongside improved PAT of Rs 208 crore.Key Takeaways
- 10% QoQ revenue growth to Rs 1,828 crore
- PAT improvement of Rs 208 crore
- Cash reserves increase to Rs 12,850 crore
- 34% increase in financial services revenue
- 1.17 crore merchant subscribers for payment devices
New Delhi, Jan 20 (NationPress) Paytm, a prominent player in the payments and financial services sector, announced significant growth in its financial performance on Monday. The company’s operating revenue experienced a 10% quarter-on-quarter (QoQ) increase, reaching Rs 1,828 crore in Q3 FY2025, fueled by its payments business and a broadening financial services distribution network.
Moreover, the company reported a PAT improvement of Rs 208 crore QoQ, totaling Rs (208) crore. Its cash reserves also saw a boost, increasing by Rs 2,851 crore QoQ to Rs 12,850 crore.
Key metrics highlight a Rs 181 crore QoQ improvement in EBITDA, which now stands at Rs (223) crore. The contribution margin (excluding UPI incentives) remained stable at 52%, resulting in a contribution profit of Rs 959 crore, reflecting a 7% QoQ increase, as per company disclosures.
EBITDA, before ESOP costs, saw an uplift of Rs 145 crore QoQ to Rs (41) crore. The company remains committed to achieving EBITDA profitability before ESOP costs by Q4 FY25.
Paytm's payment services revenue climbed to Rs 1,059 crore, while its financial services revenue experienced a remarkable 34% QoQ increase, reaching Rs 502 crore. The Gross Merchandise Value (GMV) processed through the platform grew to Rs 5.0 lakh crore, marking a 13% QoQ increase, further solidifying Paytm’s robust market positioning.
The merchant subscriber base for payment devices expanded to 1.17 crore, with an addition of 5 lakh new subscribers during the quarter. The net payment margin reached Rs 489 crore, supported by an increase in subscription revenue and a stable payment processing margin.
Moreover, indirect costs declined by 7% QoQ and 23% YoY. Employee expenses for the first nine months of FY2025 decreased by Rs 451 crore YoY, exceeding the company's annual cost-saving target of Rs 400-500 crore.
During the quarter, the company distributed loans totaling Rs 3,831 crore, compared to Rs 3,303 crore in Q2 FY2025. Notably, over 50% of these loans were granted to repeat borrowers, indicating strong customer retention and consistent demand.
A substantial proportion of merchant loans fell under Paytm's DLG (Direct Lending & Guarantee) model, which continues to enhance the company's financial services revenue. Loans issued under this model, known for their elevated upfront costs, yield higher revenue over their duration, thus enhancing profitability. The success of this model has drawn increased interest from lenders keen to collaborate with Paytm, recognizing its potential for sustainable growth and returns, the company stated.
