New Delhi, Jan 20 Leading payments and financial services company, Paytm, on Monday reported impressive robust growth across key financial metrics. The company’s operating revenue surged by 10 per cent quarter-on-quarter (QoQ) to Rs 1,828 crore in Q3 FY2025, driven by its payments business and expanding financial services distribution portfolio.
The company reported a PAT improvement of Rs 208 crore QoQ to Rs (208) crore, while its cash reserves increased by Rs 2,851 crore QoQ to Rs 12,850 crore.
The key highlights include a Rs 181 crore QoQ improvement in EBITDA, which now stands at Rs (223) crore. The company's contribution margin (excluding UPI incentives) held steady at 52 per cent, translating to a contribution profit of Rs 959 crore, up 7 per cent QoQ, according to the company.
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.
The company’s payment services revenue grew to Rs 1,059 crore, while its financial services revenue saw an impressive 34 per cent QoQ increase, reaching Rs 502 crore. Gross Merchandise Value (GMV) processed through the platform rose to Rs 5.0 lakh crore, a 13 per cent QoQ growth, further underscoring Paytm’s strong market position.
Paytm’s merchant subscriber base for payment devices rose to 1.17 crore, with 5 lakh new additions during the quarter. The net payment margin reached Rs 489 crore, aided by higher subscription revenue and a stable payment processing margin.
Indirect costs were down 7 per cent QoQ and 23 per cent year-on-year (YoY). Employee expenses for the first nine months of FY2025 dropped by Rs 451 crore YoY, surpassing the company’s annual cost-saving target of Rs 400-500 crore.
The company also distributed loans worth Rs 3,831 crore during the quarter, versus Rs 3,303 crore in Q2 FY2025. Notably, over 50 per cent of these loans were provided to repeat borrowers, reflecting a consistent demand and strong customer retention.
A significant portion of merchant loans was distributed under Paytm's DLG (Direct Lending & Guarantee) model, which continues to bolster the company's financial services revenue.
Loans under the DLG model, known for their higher upfront cost, deliver higher revenue over their lifecycle, further enhancing profitability. The strong performance of this model has attracted increased interest from lenders eager to partner with Paytm, recognising its potential to drive sustainable growth and returns, said the company.
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