We have announced the financial results for the first quarter of FY25 (Q1 FY2025), registering a rebound in key metrics. The financial results of the company are in line with the guidance provided during the previous quarter.
We have reported an operating revenue of Rs 1,502 Cr, with Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) loss standing at Rs 792 Cr. EBITDA before ESOP stood at loss of ₹545 Cr, as stated previously.
Our full financial impact of the recent disruptions is visible in Q1 FY2025. The company also stated that revenue and profitability will improve, with growth in merchant payment operating metrics including GMV, accelerated merchant reactivation and growing merchant base, along with continued focus on cost optimisation.
Revenue from financial services amounted to ₹280 Cr, while revenue from marketing services was ₹321 Cr. During the quarter, contribution profit was at ₹755 Cr, with a 50% margin.
“We are seeing a rebound in our merchant operating metrics and stability in our consumer base, demonstrating our path to recovery. This also indicates the continued confidence of our merchant partners and consumers on our platform, and we are grateful for the trust of our stakeholders. With Q1 illustrating the full impact of recent disruptions, we are confident in our trajectory towards sustained growth going forward.”
Paytm spokesperson said
We continue to have a strong balance sheet with ₹8,108 Cr of cash on books. It also holds stock acquisition rights in PayPay Corporation (5.4% stake, once exercised).
You can read the Q1FY25 results here:
Q1 FY 2025 Financial Highlights:
- Merchant Payment Operating Metrics Rebound to January 2024 levels
The new merchant signups on our platform reached January 2024 levels. Further, accelerated efforts towards redeploying devices from inactive to new merchants have resulted in an increase in merchant subscriber (or device merchant) base to 1.09 Cr. We expect net device merchant additions to reach previous run rates by Q3 FY 2025.
Daily average GMV (excluding disrupted products) has shown consistent improvement during the quarter and will remain positive as it nears January 2024 levels. Overall gross merchandise value (GMV) has been growing month-on-month (MoM) and is Rs 4.3 lakh crore for the June quarter.
- GMV per consumer increasing, stablising metrics
Our total monthly transacting user base has stabilised at 7.8 crore by the end of June, highlighting strong user affinity for Paytm’s platform and retention. We are awaiting permission to onboard new UPI consumers, which will result in further growth of our MTU base.
- Cost optimisation continues to be focus
As part of our earnings release, we remain committed to managing our overall cost structure. It has achieved a 9% reduction quarter on quarter in employee costs, as part of our goal to save ₹400-500 Cr annually.
Driving monetisation through loans, wealth, insurance distribution
We have been keenly focused on distributing tailored offerings to our consumers across categories of loans, wealth products and insurance.
It has also seen a strong product-market fit for the distribution of our shop insurance offerings by leveraging merchant insights. On the consumer side, we have seen good traction with embedded and DIY insurance products such as motor insurance. On the health insurance front, we are offering differentiated products that combine Health Insurance, Healthcare, and OPD benefits and have also launched protection plans for merchant partners.
It will also look to enhance credit distribution by diversifying lending products and partners and expanding secured lending products.
Disclosures regarding PayPay
It holds stock acquisition rights in PayPay Corporation (5.4% stake, once exercised).
Focus areas
It will focus on leading the market with merchant payment innovations, including introducing new devices and aggregation of various merchant discount rate (MDR)-bearing payment instruments. We will allocate more resources to Insurance distribution and Mutual Fund distribution, which offer large monetisation opportunities.
We remain grateful for your continuous support and remain committed to our mission to building a profitable company and creating shareholder value while driving digitisation and inclusive financial access
