Paytm Q2 FY25 Results: Digital payments firm turns profitable with one-time exceptional gain; PAT at Rs 928 crore

Paytm Q2 FY25 Results: Digital payments firm Paytm—owned by One97 Communications—on Tuesday reported a consolidated net profit of Rs 928.3 crore for the quarter ended September 30 due to a one-time exceptional gain. The company had logged net losses of Rs 838.9 crore and Rs 290.5 crore for the previous quarter and the July-September 2023 period respectively. 

Paytm Q2 FY25 Earnings | PAT of Rs 928 crore with exceptional item 

Its revenue stood at Rs 1,659.5 crore for the second quarter of the current financial year, driven by growth in payments and financial services, as against Rs 2,518.6 crore for the corresponding period a year ago, according to a regulatory filing. 

Paytm's revenue grew 11 per cent sequentially on the back of a 5.0 per cent increase in its gross merchandise value—a key measure of income based on the value of sales over a given period of time, better realisation from devices, and a 34 per cent increase in financial services revenue.

Paytm said it remains focused on payments and distribution of financial services for sustained, profitable growth going forward. 

The company reported an exceptional gain of Rs 1,345 crore on account of the sale of its entertainment ticketing business to Zomato upon completing the transaction during the quarter.

Paytm said the final price, after working capital adjustments, was Rs 2,014 crore, leading to the gain of Rs 1,345 crore.

The digital payments company said the transaction had led to further strengthening of its balance sheet with a cash balance of Rs 9,999 crore. 

ALSO READ: Zomato acquires Paytm entertainment ticketing business in Rs 2,048-crore all-cash deal

Paytm Share Price

At 11:05 am, Paytm shares were trading lower by Rs 16.9, or 2.3 per cent, at Rs 709 apiece on BSE in some respite for investors after falling as much as 5.8 per cent to Rs 683.8 in intraday trade earlier. 

Paytm shares have risen 84 per cent in six months, outperforming a 10.5 per cent rise in the headline Nifty50 index.

Paytm Q2 Results | Other key things to know

Paytm's net payment margin improved 21 per cent sequentially to Rs 465 crore, mainly on account of improvement in payment processing margin, better device realisation, and GMV growth.

Its financial services revenue grew 34 per cent sequentially to Rs 376 crore.

"With even greater confidence in our merchant loan distribution business, where we help in both distribution and collection, we have started working with select lenders by giving the Default Loss Guarantee (DLG, explained in subsequent sections) for select portfolios," Paytm said in a statement.

Paytm said this will provide it with an opportunity to serve a wider merchant base and increase its financial services distribution revenue in the long term.

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