Indigenous fintech firm, One97 Communications, the parent company of Paytm, has reported its first-ever consolidated net profit at ₹122.5 crore in the quarter ended June 2025, the company’s data revealed.
“EBITDA and PAT turned profitable at ₹72 crore and ₹123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income," Paytm said in a statement.
A year ago, Paytm had posted a net loss of ₹840 crore. It then went on to reduce employee benefits by about ₹300 crore from ₹952.5 crore to about ₹643 crore on a year-over-year basis.
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It also slashed marketing and promotional expenses by more than half to ₹99.8 crore during the reported quarter from ₹221.4 crore a year ago and ₹142.7 crore in the March 2025 quarter.
While the company increased sales employee cost by 19 per cent on a Y-o-Y basis to ₹266 crore (its average number of sales employees increased by 23 per cent YoY basis to 38,945), it recorded a reduction in non-sales employee cost by 28 per cent YoY to ₹346 crore due to the use of artificial intelligence in various processes across its business.
The consolidated revenue from operations in the reporting quarter increased by about 28 per cent to ₹1,917.5 crore from ₹1,501.6 crore in the June 2024 quarter, mainly on account of an increase in payment processing margins.
“In the first quarter of FY'25, payment services revenue (including other operating revenue) was up 23 per cent YoY at ₹1,110 crore. Net payment revenue was up 38 per cent Y-o-Y at ₹529 crore due to an increase in payment processing margin and device," the company said.
Paytm reported 27 per cent Y-o-Y increase in gross merchandise value to ₹5.39 lakh crore in the reported quarter.
The company said that merchant subscriptions were at an all-time high of 1.3 crore, an increase of 21 lakh YoY, on the back of high-quality devices and superior service network as of June 2025.
"To further strengthen tier-1 market position and expand in tier-2 and tier-3 cities, we are investing in expanding our sales network (sales people costs are up 19 per cent YoY)," the statement said.
During the reported quarter, Paytm said that average monthly transacting users (MTU) base reached 7.4 crore. The company said that distribution of financial services revenue grew 100 per cent YoY to ₹561 crore, driven by continued expansion in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improvement in asset quality.
Paytm reported an 88 per cent decline in ESOP (employee stock ownership plan) costs to ₹30 crore from ₹169 crore in the March quarter and ₹247 crore a year ago.
The company had made ESOP cost related adjustments in the March quarter when its CEO Vijay Shekhar Sharma voluntarily surrendered his ESOPs.
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