This is the company’s first quarter of profit from core operations. It had reported a profitable quarter in September last year due to a one-time gain from the sale of its ticketing business to Eternal (formerly Zomato).
Operating revenue rose 28% year-on-year to Rs 1,918 crore, led by an 18% growth in payment services revenue to Rs 1,044 crore and a doubling of financial services revenue to Rs 561 crore. However, marketing services revenue declined 23% to Rs 247 crore due to the sale of the ticketing unit and lower transacting users on that service.
The company attributed the growth in financial services to continued expansion in merchant loans, trail revenue from its Default Loss Guarantee (DLG) portfolio, and improved collections. However, the consumer lending segment remained sluggish, affected by macroeconomic conditions.
Responding to analyst queries, Paytm group CFO Madhur Deora said the company is focused on merchant payments and lending, which are performing well. On the consumer side, Paytm is awaiting signs of recovery in the personal loan segment and is preparing to reintroduce products such as mobile wallets and buy-now-pay-later (BNPL).
Total expenses for the quarter fell 18.5% YoY to Rs 2,016 crore, driven by a 32% decline in employee benefit expenses to Rs 642.6 crore. Marketing expenses were under Rs 100 crore, compared to Rs 221 crore in the year-ago period. Cashback and promotional spends were down to Rs 37 crore.
The company incurred negligible Esop (Employee Stock Option Plan) costs of Rs 30 crore in the June quarter, as grants were delayed. Paytm said these costs will reflect in the next quarter, with full-year Esop expenses projected at Rs 250–275 crore.
CEO Vijay Shekhar Sharma said while the focus is on cutting unnecessary costs, the company is also investing in new growth opportunities that can drive sustainable revenues.
Paytm’s merchant subscription base including soundboxes and point-of-sale (PoS) terminals rose to 13 million as of June 2025, led by continued device adoption and improved sales productivity. Of these, around 1 million are PoS terminals, with the rest comprising soundboxes.
The company said its cash balance stood at Rs 12,872 crore, which will be deployed to expand its financial services and payments operations.
Paytm’s monthly transacting user base reached 74 million, with around 560,000 users accessing financial services on the platform. “We have enhanced our focus on Paytm Money, across mutual funds distribution and equity broking. Looking ahead, we anticipate growth in financial services across both loan distribution and Paytm Money,” the company said in a press release.
On the lending side, the company noted a higher proportion of disbursals were now happening via the non-DLG route, indicating increased lender confidence in the platform’s borrower base. This shift reduces upfront costs for Paytm and improves margins.
In a separate stock exchange filing, the company said Deora is stepping down from the board of directors, as he takes on a broader role to drive new business initiatives and global expansion.
