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Fintech firm One97 Communications, the parent company of Paytm, has reported its first-ever consolidated net profit of ₹122.5 crore for the quarter ended June 2025, marking a sharp turnaround from a loss of ₹840 crore in the same period last year.
The company attributed the shift to profitability to strong growth in payment revenue and aggressive cost optimisation. EBITDA stood at ₹72 crore, supported by improved operating efficiency and higher other income.
Paytm cut its marketing and promotional spending by over 50% year-on-year to ₹99.8 crore. Employee benefit expenses dropped by nearly one-third to ₹643 crore, aided by increased use of artificial intelligence in business operations. Non-sales employee costs fell 28% to ₹346 crore, while sales-related expenses rose 19% to ₹266 crore, reflecting continued investment in expanding the sales network.
The company’s average number of sales employees rose 23% to 38,945.
Revenue from operations grew 28% year-on-year to ₹1,917.5 crore, up from ₹1,501.6 crore in Q1 FY24. Payment services revenue, including operating income, rose 23% to ₹1,110 crore, while net payment revenue surged 38% to ₹529 crore due to improved processing margins and device adoption.
Paytm’s gross merchandise value (GMV) increased 27% year-on-year to ₹5.39 lakh crore. Merchant subscriptions reached an all-time high of 1.3 crore, adding 21 lakh new merchants compared to last year.
The company’s average monthly transacting users (MTUs) reached 7.4 crore during the quarter.
Financial services distribution revenue doubled to ₹561 crore, driven by growth in merchant loans, Default Loss Guarantee (DLG) trail income, and better asset quality.
Meanwhile, Paytm’s ESOP (Employee Stock Ownership Plan) costs dropped 88% to ₹30 crore from ₹247 crore a year ago. This sharp decline followed CEO Vijay Shekhar Sharma’s decision to surrender his ESOPs in the previous quarter.
The results mark a significant milestone for Paytm as it transitions from heavy losses to profitability, backed by operational discipline and strategic investments.
(Source: PTI)
