Paytm, India’s leading digital payments and financial services distribution company, reported robust financial performance for Q3 FY2025, with operating revenue reaching Rs 1,828 crore, up 10 per cent quarter-on-quarter (QoQ). The company attributed the growth to increased Gross Merchandise Value (GMV), a healthy rise in gross device additions, and higher revenues from financial services distribution.
Paytm’s commitment to sustained profitability continues to show through its numbers. The contribution margin stood at 52 per cent, with contribution profit rising 7 per cent QoQ to Rs 959 crore. EBITDA before ESOP costs improved by Rs 145 crore QoQ to Rs (41) crore, with the company maintaining its target to achieve EBITDA profitability before ESOP costs by Q4 FY25. Most importantly, the company’s Net profit after tax (PAT) also showed significant improvement, narrowing to Rs (208) crore, an improvement of Rs Rs 208 crore QoQ.
The company’s GMV reached Rs 5 lakh crore, up 13 per cent QoQ, while the net payment margin stood at Rs 489 crore, supported by higher subscription revenues. The merchant subscriber base for devices grew by 5 lakh QoQ to 1.17 crore as of December 2024.
In India’s growing merchant ecosystem, Paytm, which is a market leader, sees a potential of over 10 crore merchants adopting mobile payments, with an estimated 40-50 per cent requiring software and hardware solutions for managing digital payments. The company reiterated its commitment to provide Made in India pioneering payment devices and expanding its distribution and service network to capture this market opportunity.
Paytm highlighted the evolving UPI ecosystem has unlocked new revenue opportunities through credit products like RuPay Credit Cards linked to UPI apps. The company noted an increasing trend of customers using RuPay credit cards for UPI transactions, allowing merchants to accept credit card payments via UPI QR codes. Additionally, with onboarding approval for new users received in October, Paytm has already begun to make a notable impact, further expanding its customer base and boosting transaction volumes.
Paytm remains focused on scaling its payment and financial services offerings to drive sustained, profitable growth. The company aims to achieve EBITDA before ESOP profitability by Q4 FY2025, driven by growth in revenue, improved contribution margins, and further reductions in indirect costs.
