Key Takeaways
- Paytm reports second consecutive quarterly profit with Rs 211 crore PAT before impairment
- Revenue grows 24% to Rs 2,061 crore in Q2 FY2025
- Financial services revenue surges 63% year-on-year
- Merchant subscriptions hit record 1.37 crore
Paytm has delivered its second straight profitable quarter, reporting strong revenue growth and improved margins for the September 2025 quarter. The digital payments giant posted a profit after tax of Rs 211 crore before accounting for a one-time impairment charge.
Financial Performance Highlights
Operating revenue increased 24% year-on-year to Rs 2,061 crore, driven by growth across both payments and financial services segments. After accounting for a Rs 190 crore impairment charge related to its investment in First Games Technology, the reported PAT stood at Rs 21 crore.
The company’s EBITDA improved to Rs 142 crore with a 7% margin, reflecting better operating leverage. Contribution profit saw impressive 35% growth to Rs 1,207 crore, maintaining a healthy 59% margin.
Payments Business Growth
Payment services revenue rose 25% to Rs 1,223 crore, while net payment revenue grew 28% to Rs 594 crore. Gross Merchandise Value surged 27% to Rs 5.67 lakh crore, supported by improved processing margins from credit cards on UPI and EMI offerings.
Paytm’s merchant ecosystem expanded significantly, with subscriptions reaching an all-time high of 1.37 crore – adding 25 lakh merchants year-on-year.
Financial Services Momentum
The financial services distribution business emerged as the fastest-growing segment, with revenue jumping 63% to Rs 611 crore. This growth was driven by robust merchant loan disbursements and improved collection performance for lending partners.
Over 6.5 lakh consumers availed Paytm’s financial services during the quarter, indicating growing adoption across its ecosystem.
Operational Efficiency
On the cost front, indirect expenses declined 18% year-on-year and 1% quarter-on-quarter to Rs 1,064 crore. Marketing costs for consumer acquisition decreased 42% year-on-year, reflecting stronger retention and improved monetization.
The company stated it will continue strategic investments to drive market share gains while maintaining disciplined spending.
