Synopsis
Paytm has shown significant growth in its financial metrics, with a 10% increase in quarterly revenue reaching Rs 1,828 crore in Q3 FY2025, alongside an improved PAT of Rs 208 crore. The company continues to expand its services and strengthen market position.Key Takeaways
- Operating revenue surged by 10% QoQ to Rs 1,828 crore.
- PAT improved by Rs 208 crore QoQ.
- EBITDA increased by Rs 181 crore QoQ.
- Financial services revenue rose by 34% QoQ.
- Loan distribution reached Rs 3,831 crore this quarter.
New Delhi, Jan 20 (NationPress) The prominent payments and financial services firm, Paytm, announced a remarkable growth trajectory in its primary financial indicators on Monday. The company’s operating revenue climbed by 10% quarter-on-quarter (QoQ), reaching Rs 1,828 crore in Q3 FY2025. This boost was primarily fueled by its payments sector and an expanding distribution portfolio for financial services.
Paytm recorded an improvement in PAT of Rs 208 crore QoQ, now standing at Rs (208) crore, alongside a rise in cash reserves by Rs 2,851 crore QoQ, totaling Rs 12,850 crore.
Key takeaways include an EBITDA enhancement of Rs 181 crore QoQ, currently at Rs (223) crore. The contribution margin (excluding UPI incentives) remained stable at 52%, leading to a contribution profit of Rs 959 crore, exhibiting a 7% QoQ increase, as stated by the company.
EBITDA prior to ESOP costs saw an improvement of Rs 145 crore QoQ, reaching Rs (41) crore, with the firm aiming for EBITDA profitability before ESOP costs by Q4 FY25.
The revenue from payment services escalated to Rs 1,059 crore, while financial services revenue witnessed a notable 34% QoQ surge, achieving Rs 502 crore. The Gross Merchandise Value (GMV) processed through the platform rose to Rs 5.0 lakh crore, marking a 13% QoQ growth and reinforcing Paytm’s strong market presence.
Paytm’s merchant subscriber base for payment devices increased to 1.17 crore, including 5 lakh new additions during the quarter. The net payment margin reached Rs 489 crore, boosted by a rise in subscription revenue and a stable payment processing margin.
Indirect costs decreased by 7% QoQ and 23% year-on-year (YoY). Employee expenses throughout the initial nine months of FY2025 fell by Rs 451 crore YoY, exceeding the company's annual cost-saving goal of Rs 400-500 crore.
The company also disbursed loans totaling Rs 3,831 crore in the quarter, compared to Rs 3,303 crore in Q2 FY2025. Notably, over 50% of these loans were granted to repeat borrowers, indicating a steady demand and robust customer retention.
A significant segment of merchant loans was allocated under Paytm's DLG (Direct Lending & Guarantee) model, which continues to enhance the company's financial services revenue. Loans under the DLG model, recognized for their higher initial costs, yield greater revenue across their lifecycle, further boosting profitability. The strong performance of this model has piqued lender interest, eager to collaborate with Paytm, acknowledging its capability to foster sustainable growth and returns, as outlined by the company.
