Paytm Reports ₹930 Crore Net Profit in Q2 FY25, Driven by ₹1,345 Crore Extraordinary Gain from Ticketing Business Sale

One97 Communications Ltd., the parent company of Paytm, announced impressive financial results for Q2 FY 2025, with a reported net profit of ₹930 crore, largely driven by an extraordinary gain of ₹1,345 crore from selling its entertainment ticketing business. Other notable highlights include:

1. Revenue & Growth:
   • Operating revenue: ₹1,660 crore, up 11% quarter-over-quarter (QoQ).
   • Payment services revenue: ₹981 crore, a 9% QoQ increase, supported by a 5% QoQ rise in GMV to ₹4.5 lakh crore.
   • Financial services revenue: ₹376 crore, up 34% QoQ, driven by better asset quality trends and increased merchant loan distribution.
2. Profitability & Margins:
   • EBITDA (before ESOP): Improved by ₹359 crore to ₹(186) crore, showing a strong trend toward achieving profitability by Q4 FY 2025.
   • EBITDA: Improved by ₹388 crore QoQ to ₹(404) crore.
   • Net payment margin: ₹465 crore, up 21% QoQ, driven by improved payment processing margins and better device realization.
   • Contribution margin (excluding UPI incentives): Expanded to 54%, supported by high-margin financial services revenue.
3. Cost Reductions:
   • Indirect costs: Reduced by 17% QoQ to ₹1,080 crore, aided by a 13% decrease in employee costs and lower marketing expenses.
4. Merchant Services Growth:
   • Merchant device subscribers increased by 3 lahks QoQ to 1.12 crore.
   • 6 lakh financial services clients used the Paytm platform in Q2 FY 2025, slightly higher than the 5.9 lakh in Q1 FY 2025.
5. Cash Position:
   • Paytm’s cash balance stood at ₹9,999 crore at the end of September 2024, boosted by a ₹2,014 crore inflow from the sale of the entertainment ticketing business.

Paytm’s robust performance across its payment and financial services segments and its cost-control measures indicate strong financial health and a positive trajectory toward profitability.

Disclaimer: The information provided herein is for informational purposes only and should not be construed as financial advice. While efforts have been made to ensure the accuracy of the data presented, neither One97 Communications Ltd. nor any associated parties guarantee its completeness or reliability. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.