Paytm Turns Profitable In June 2025 Quarter; Revenue Climbs 28 Per Cent

One97 Communications, the parent company of Paytm, recorded its first-ever consolidated net profit of Rs 122.5 crore for the quarter ending June 2025, marking a significant turnaround from the Rs 840 crore net loss posted during the same quarter in the preceding 2024-25 fiscal year (FY25).

The company attributed this notable recovery to a combination of cost-cutting initiatives and stronger performance in its payments business, reported PTI.

In a statement, Paytm highlighted that both its EBITDA and PAT for the quarter turned positive, at Rs 72 crore and Rs 123 crore, respectively. The company credited this shift to its “AI-led operating leverage, disciplined cost structure, and higher other income.”

One of the biggest contributors to this result was a substantial reduction in marketing and promotional expenses, which fell to Rs 99.8 crore during the quarter under review—less than half of the Rs 221.4 crore recorded a year earlier.

At the same time, employee benefit expenses were reduced by roughly one-third, falling from Rs 952.5 crore in Q1FY25 to about Rs 643 crore in the first quarter in the current fiscal year.

While the cost of sales personnel rose by 19 per cent year-on-year to Rs 266 crore, the cost associated with non-sales staff fell 28 per cent YoY to Rs 346 crore. This was made possible through increased deployment of artificial intelligence across various business functions, the company noted.

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Payment, Loan Distribution and User Metrics Show Upward Trend

Revenue from operations during the April-June 2025 quarter climbed 28 per cent YoY to Rs 1,917.5 crore, compared to Rs 1,501.6 crore in the same period last year. Paytm reported that payment services revenue, which includes other operating income, grew 23 per cent YoY to Rs 1,110 crore, while net payment revenue surged 38 per cent YoY to Rs 529 crore, largely due to improved margins and device-related revenue.

Gross merchandise value (GMV) increased 27 per cent YoY to Rs 5.39 lakh crore, and merchant subscriptions reached a record 1.3 crore as of June 2025—an addition of 21 lakh merchants over the year. The company attributed this to “high-quality devices and superior service network.”

To deepen its presence in smaller cities, Paytm said, “To further strengthen tier-1 market position and expand in tier-2 and tier-3 cities, we are investing in expanding our sales network (sales people costs are up 19 per cent YoY).”

The platform also saw its monthly transacting user base expand to 7.4 crore during the quarter. Meanwhile, revenue from financial services distribution doubled year-on-year to Rs 561 crore, bolstered by growth in merchant loans, trail income from the Default Loss Guarantee (DLG) portfolio, and better asset quality.

In terms of stock-based compensation, Paytm recorded a steep 88 per cent drop in ESOP costs, which stood at Rs 30 crore, compared to Rs 169 crore in the March quarter and Rs 247 crore a year ago. The March quarter had seen adjustments following CEO Vijay Shekhar Sharma’s voluntary surrender of his ESOPs.

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