Paytm Q3 Results: Loss narrows to Rs 208 crore, revenue declines YoY

Paytm, operated by One97 Communications, reported a consolidated loss of Rs 208.3 crore for Q3FY25, an improvement from the Rs 219.8 crore loss recorded in the same period last year.

However, the company’s revenue from operations declined by 36 per cent year-on-year (YoY) to Rs 1,828 crore from Rs 2,851 crore in Q3FY24. On a quarter-on-quarter (QoQ) basis, revenue rose 10 per cent, reflecting growth in gross merchandise value (GMV), subscription revenues, and financial services distribution revenues.

Strong subscription and financial services growth
Paytm’s net payment margin increased 5 per cent QoQ to Rs 489 crore, supported by higher subscription revenues. Growth in financial services revenue was attributed to an increased share of merchant loans and improved collection efficiencies from the Default Loss Guarantee (DLG) portfolio. However, the company clarified that no UPI incentives were recorded during the quarter, as these are typically received in Q4 of the financial year.

Cost control measures yielding results
The fintech major reduced its indirect costs by 7 per cent QoQ and 23 per cent YoY to Rs 1,000 crore. Employee costs (excluding ESOPs) for the first nine months of FY25 decreased by Rs 451 crore YoY, exceeding the annual target of Rs 400-500 crore in savings. Marketing expenses and sales employee costs were calibrated to support customer and merchant acquisition efforts.

Growing merchant base and cash balance
Paytm’s merchant subscriber base for its devices reached 1.17 crore by December 2024, with an addition of five lakh subscribers during the quarter. The company’s cash balance rose significantly by Rs 2,851 crore QoQ to Rs 12,850 crore, driven by proceeds from the PayPay stake sale and working capital improvements.

Monetisation and international expansion plans
Paytm is exploring ways to monetize its merchant payments and financial services distribution model internationally through organic expansion, local licenses, strategic investments, and partnerships.

Following the results, Paytm shares traded marginally higher at Rs 904.75 on the BSE, reflecting investor confidence in the company’s improved cost management and business growth strategies.