CLSA Projects Paytm's Core EBITDA Loss To Improve To Rs 1 Billion In Q3FY25, With GMV Growth Of 12-13%
CLSA highlighted the stability in Paytm’s net take rate for payments, emphasizing its importance as a key driver of revenue growth
According to CLSA’s latest report, Paytm, India’s leading digital payments and financial services platform, has shown remarkable improvements during the third quarter of FY25. CLSA noted that the company’s Gross Merchandise Value (GMV) grew by 12-13% quarter-on-quarter (QoQ), driven by strong operational performance.
CLSA highlighted the stability in Paytm’s net take rate for payments, emphasizing its importance as a key driver of revenue growth. The report recognized Paytm’s strong operational framework, enabling consistent revenue generation despite a competitive landscape.
“Merchant loans have grown well, demonstrating Paytm’s focus on financial inclusion for small businesses,” CLSA said in its report. While personal loans showed modest growth, the merchant lending segment stood out as a key growth area for the company. This aligns with Paytm’s strategy of supporting merchants with seamless access to credit.
CLSA commended Paytm for its cost management initiatives. The company successfully reduced its core EBITDA loss from Rs 1.9 billion in Q2FY25 to an expected Rs 1 billion in Q3FY25, reflecting enhanced operational efficiency. The report acknowledged this as a critical milestone in Paytm’s journey toward profitability.
“This quarter saw significant improvement in transaction volumes and user engagement, contributing to an improved quarter for Paytm,” CLSA stated. This period saw increased activity across Paytm’s ecosystem, reinforcing its position as a market leader in digital payments.
CLSA’s report projects continued momentum for Paytm in the coming quarters. The report praised Paytm’s ability to balance growth with cost discipline, stating, “Paytm is making steady progress toward profitability, driven by its operational focus and market leadership.”
As highlighted by CLSA, Paytm’s commitment to empowering merchants and enhancing user experiences cements its role in shaping India’s digital financial ecosystem. The company’s progress in Q3FY25 showcases its ability to adapt and thrive in a rapidly evolving market.
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