One97 Communications Limited, the parent entity of Paytm, has announced a revenue of Rs 1,659.5 crore from operations for the second quarter of FY25. This figure represents a quarter-on-quarter growth of 10.5% compared to Q1 FY25.
Payment services contributed 59% to the total operating revenue, which rose by 9% quarter-on-quarter to reach Rs 981 crore in Q2 FY25. The rest of the revenue stemmed from financial services, device sales, and various other associated services.
In terms of expenses, Paytm allocated 38% of its total costs to employee benefits, which saw an 11.2% reduction, amounting to Rs 709 crore for Q2 FY25. This figure includes Rs 225 crore attributed to ESOP expenditures.
The company reported its marketing expenses at Rs 151 crore and payment processing costs at Rs 305 crore for Q2 FY25. Additional costs related to software, technology, finance, legal matters, and other operational overheads brought the total expenditure to Rs 1,864 crore, down from Rs 2,099 crore in the preceding quarter.
The combination of steady growth and controlled spending in marketing and employee compensation enabled Paytm to slash its losses by 47%, totaling Rs 437 crore in Q2 FY25. Notably, Paytm recorded Rs 1,345 crore as non-operating income from the sale of its entertainment ticketing segment to Zomato, which has been excluded from the loss calculation due to its non-operational nature.
During Q2 FY25, Paytm experienced remarkable growth in merchant loan disbursements, which jumped to Rs 3,303 crore from Rs 2,508 crore in Q1 FY25. However, personal loan disbursements slightly dipped to Rs 1,977 crore as lenders adopted more stringent risk policies.
Paytm’s EBITDA before ESOP costs improved by Rs 359 crore quarter-on-quarter, although it remained negative at Rs 186 crore in Q2 FY25. This enhancement in operational efficiency indicates Paytm’s ongoing efforts to manage costs and boost profitability.
As of the end of Q2 FY25, Paytm reported a robust cash balance of Rs 9,999 crore, showcasing its strong liquidity position. Despite these positive developments, the company’s stock saw a 7.39% decrease in today’s trading session, with shares priced at Rs 672.3 each by 12:04 PM, resulting in a market capitalization of approximately Rs 42,800 crore ($5 billion).