Paytm Reports Rs 930 Crore Net Profit After One-Time Gain, Stock Down Over 4 Per Cent

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New Delhi: The shares of One 97 Communications Ltd (parent company of Paytm) slumped over 4 per cent on Tuesday after the fintech platform posted a net profit of Rs 930 crore in the July-September quarter (Q2) of FY25, due to a one-time gain, compared to a loss of Rs 292 crore in the same period last year.

The Paytm achieved profitability thanks to a one-time exceptional gain of Rs 1,345 crore from selling its entertainment ticketing business to Zomato. Without this exceptional gain, the company recorded a Rs 495 crore loss in Q2 — a 70 per cent increase compared to the previous year.

Revenue jumped to Rs 1,660 crore (up 11 per cent quarter-on-quarter) due to growth in payments and financial services distribution. “We remain committed to achieving EBITDA before ESOP profitability by Q4 FY 2025,” the company stated.

The company also highlighted that its continued focus on payments and financial services distribution will drive sustained, profitable growth. Revenue from the payments business was Rs 981 crore, up 9 per cent quarter-on-quarter, and revenue from financial services was Rs 376 crore, up 34 per cent quarter-on-quarter.

New subscription-paying device merchant sign-ups exceeded January levels, with total merchant subscriptions reaching 1.12 crore.

“We plan to continue reactivating merchants and redeploying inactive devices to new merchants over the next 2-3 quarters. This will lead to a higher active merchant base and increased revenue,” the company added.

Over the next few quarters, key areas of focus will include maintaining a compliance-first approach, innovating in merchant payments, driving customer acquisition, expanding high-margin financial services revenue by partnering with more financial services providers, and using Artificial Intelligence (AI) to reduce costs.

Paytm will also initiate DLGs (default loss guarantees) on the distribution of merchant loans. It has received approval from its Board for a partner providing DLG of Rs 225 crore over a period of time.