Paytm Q1FY25 Results: Operating Revenue At Rs 1,502 Cr; Merchant Payments Rebound, Consumer Metrics Steady

The company has reported an operating revenue of Rs 1,502 crore, with EBITDA loss standing at Rs 792 core. EBITDA before ESOP stood at loss of Rs 545 crore, as stated previously

One 97 Communications’ revenue from financial services amounted to Rs 280 crore, while revenue from marketing services was Rs 321 crore.

Source : Paytm

One 97 Communications Limited (OCL) that owns the brand Paytm, one of India’s leading payments and financial services company, has registered a rebound in its key metrics in the first quarter (Q1) of FY25 results. According to Paytm, the results were in line with guidance provided during the previous quarter.

The company has reported an operating revenue of Rs 1,502 crore, with EBITDA loss standing at Rs 792 core. EBITDA before ESOP stood at loss of Rs 545 crore, as stated previously. 

The full financial impact of the recent disruptions is visible in Q1FY25. The company said that revenue and profitability will improve, with growth in merchant payment operating metrics including GMV, accelerated merchant reactivation and growing merchant base, along with continued focus on cost optimisation.

One 97 Communications’ revenue from financial services amounted to Rs 280 crore, while revenue from marketing services was Rs 321 crore. During the quarter, contribution profit was at Rs 755 crore, with a 50 per cent margin.

A spokesperson from Paytm said, “We are seeing a rebound in our merchant operating metrics and stability in our consumer base, demonstrating our path to recovery. This also indicates the continued confidence of our merchant partners and consumers on our platform, and we are grateful for the trust of our stakeholders. With Q1 illustrating the full impact of recent disruptions, we are confident in our trajectory towards sustained growth going forward.”

As per company statement, Paytm continues to have a strong balance sheet with Rs 8,108 crore of cash on books. It also holds stock acquisition rights in PayPay Corporation (5.4 per cent stake, once exercised). 

Here’s A Glance Of Q1FY25 Results:

1. Merchant Payment Operating Metrics Rebound to January 2024 Levels

The company announced that new merchant signups on its platform have returned to January 2024 levels. Additionally, efforts to redeploy devices from inactive to new merchants have boosted the merchant subscriber (or device merchant) base to 1.09 crore. The Noida-headquartered payments leader expects net device merchant additions to reach previous run rates by Q3 FY25. Daily average GMV (excluding disrupted products) has shown consistent improvement during the quarter, nearing January 2024 levels. Overall GMV has been growing month-on-month (MoM) and reached Rs 4.3 lakh crore for the June quarter.

2. GMV per Consumer Increasing, Stabilising Metrics

The company highlighted that its total monthly transacting user base stabilised at 7.8 crore by the end of June, demonstrating strong user affinity for Paytm’s platform and high retention. Paytm also mentioned that it is awaiting permissions to onboard new UPI consumers, which will further grow its MTU base.

3. Cost Optimisation Continues to Be a Focus

In its earnings release, the company highlighted its commitment to managing its overall cost structure. It has achieved a 9 per cent reduction in employee costs quarter-on-quarter, as part of its goal to save Rs 400-500 crore annually.

4. Driving Monetisation Through Loans, Wealth, and Insurance Distribution

Paytm has focused on distributing tailored offerings across loans, wealth products, and insurance. The company has identified a strong product-market fit for its shop insurance offerings by leveraging merchant insights. On the consumer side, it has seen good traction with embedded and DIY insurance products like motor insurance. For health insurance, it is offering differentiated products that combine health insurance, healthcare, and OPD benefits, and has launched protection plans for merchant partners. The company also plans to enhance credit distribution by diversifying lending products and partners and expanding secured lending products.

5. Disclosures Regarding PayPay

The company disclosed that it holds stock acquisition rights in PayPay Corporation, amounting to a 5.4 per cent stake once exercised.

6. Focus Areas

The company stated that it will continue to lead the market with merchant payment innovations, including new devices and the aggregation of various merchant discount rate (MDR)-bearing payment instruments. It will allocate more resources to insurance distribution and mutual fund distribution, which present significant monetization opportunities.