Paytm turns profitable with Q1 net gains of Rs 122.5 crore

Fintech firm One97 Communications, which owns the Paytm brand, reported its first-ever consolidated net profit at Rs 122.5 crore in the quarter ended June 2025, mainly on account of cost optimisation and an increase in payment revenue.

Paytm had posted a net loss of Rs 840 crore in the year-ago period. “EBITDA and PAT turned profitable at Rs 72 crore and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and other income,” Paytm said in a statement.

The company slashed marketing and promotional expenses by more than half to Rs 99.8 crore during the reported quarter from Rs 221.4 crore a year ago and Rs 142.7 crore in the March 2025 quarter. Paytm reduced employee benefits by about Rs 300 crore or one-third to about Rs 643 crore from Rs 952.5 crore on a year-over-year basis.

While the company increased sales employee cost by 19 per cent on a YoY basis to Rs 266 crore, it recorded a reduction in non-sales employee cost by 28 per cent YoY to Rs 346 crore due to the use of artificial intelligence in various processes across its business.

Paytm’s average number of sales employees increased by 23 per cent YoY basis to 38,945.

The consolidated revenue from operations in the reporting quarter increased by about 28 per cent to Rs 1,917.5 crore from Rs 1,501.6 crore in the June 2024 quarter mainly on account of an increase in payment processing margins.

Paytm reported 27 per cent YoY increase in gross merchandise value to Rs 5.39 lakh crore in the reported quarter.

The company said that merchant subscriptions were at an all-time high of 1.3 crore., an increase of 21 lakh YoY, on the back of high-quality devices and superior service network as of June 2025.

“To further strengthen tier-1 market position and expand in tier-2 and tier-3 cities, we are investing in expanding our sales network,” the statement said.

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