Paytm's financial results for the March quarter of FY25 showcase a notable performance, with significant growth and efficiency improvements. The company achieved a key milestone with an EBITDA before ESOP profitability of Rs 81 crore, highlighting its strong operational performance.
Quarterly revenue grew by 5% to reach Rs 1,911 crore, reflecting steady growth across its core businesses. Despite challenges earlier in the year, Paytm has managed to narrow its Profit After Tax (PAT) losses to Rs 23 crore, excluding a one-time ESOP charge of Rs 522 crore. This reduction in losses indicates improving cost control and enhanced operational efficiency.
For FY25, Paytm's total revenue amounted to Rs 6,900 crore, marking a 31% year-on-year decline. This decline is largely attributed to business disruptions in the first half of the year. However, the company is optimistic about future growth, bolstered by increased consumer and merchant engagement, an expanding device network, and new initiatives like onboarding fresh UPI users.
In terms of expanding its market presence, Paytm added 8 lakh new merchant subscribers to its payment devices in the March quarter, taking the total to 1.24 crore. This expansion strengthens its position in the digital payments ecosystem and supports its broader financial services offerings.
The company also saw a 9% sequential increase in revenue from financial services, which reached Rs 545 crore. Notably, merchant loan disbursements in the quarter were strong, totaling Rs 4,315 crore, with over 50% of these loans going to repeat borrowers. This indicates strong customer retention and effective credit performance.
Operationally, Paytm successfully reduced indirect costs by 1% compared to the previous quarter, bringing it down to Rs 991 crore. These savings were primarily driven by a 36% drop in non-sales employee expenses. Additionally, the company expects a significant reduction in ESOP costs in Q1 FY26, down from Rs 169 crore in Q4 FY25 to a range of Rs 75-100 crore.
Paytm's cash balance stood at a robust Rs 12,809 crore, providing it with ample financial flexibility to pursue future growth opportunities. This healthy cash position will allow Paytm to continue investing in its business and drive further growth in its key areas of digital payments and financial services.
