Paytm reported a profit of Rs 930 crore for Q2 FY25, reversing a Rs 290 crore loss from the same period last year. This turnaround is largely attributed to the sale of its movie ticketing and events business to Zomato, which generated Rs 1,345.4 crore in gains. Without this exceptional item, Paytm remains in the red, posting a loss of Rs 495 crore for the quarter, though this was a 41per cent improvement from the Rs 840 crore loss in Q1 FY25.
While the company’s revenue from operations dropped 34 per cent Year-on-Year (YoY) to Rs 1,659 crore, it increased slightly by 10.5 per cent compared to the first quarter. Paytm’s revenue from payments grew by nine per cent Quarter-on-Quarter (QoQ) to Rs 981 crore, driven by increased GMV, merchant subscriptions and a focus on monetisation. Additionally, net payment margins improved by 21 per cent to Rs 465 crore.
Paytm’s financial services revenue saw a 34 per cent QoQ growth, reaching Rs 376 crore, supported by growth in merchant loan distribution. The company has introduced a Default Loss Guarantee (DLG) model with select lenders, including SMFG, and distributed Rs 3,303 crore in merchant loans during the quarter, up from Rs 2,508 crore in Q1.
Looking ahead, Paytm is exploring new monetisation opportunities, including advertising on its Soundbox devices, partnering with brands like Meesho, Coca-Cola and Dabur. This ad integration aims to strengthen its position in the digital payments ecosystem.
