In Short:
One 97 Communications, the company behind Paytm, reported a higher net loss of ₹839 crore compared to the previous year. Revenue declined by 36% to ₹1,502 crore. Paytm expects to improve revenue and profitability with growth in merchant payments and cost optimization. They are confident in future performance despite recent disruptions and hold a strong balance sheet. Shares were up by nearly 5%.
Paytm Reports ₹839 Crore Loss, Revenue Decline in Q1 FY25
Once again, our beloved Fintech major One 97 Communications, which owns the brand Paytm, has caught our attention with its latest financial report. In Q1 of the fiscal year 2025, Paytm reported a consolidated net loss of ₹839 crore, marking a significant increase of 135 percent from the same quarter last year when it recorded a net loss of ₹357 crore.
Financial Details
This quarter’s loss was wider compared to the previous quarter where Paytm reported a consolidated net loss of ₹551 crore. The Revenue from Operations also took a hit, declining by 36 percent to ₹1,502 crore, down from ₹2,342 crore in the previous year. Despite these figures, a Paytm Spokesperson assured that both Revenue and Profitability are in line with earlier guidance.
Future Outlook
In the midst of these financial fluctuations, Paytm remains optimistic about the future. The company is confident that its Revenue and Profitability will see improvement in the upcoming quarters. The spokesperson emphasized that growth in merchant payment operating metrics, along with a focus on cost optimization, will drive this improvement.
Impact of RBI’s Action
Regarding the impact of RBI’s action on Paytm Payments Bank Limited (PPBL), the spokesperson confirmed that the full impact was reflected in the Q1 performance. The disruption had a significant impact on the company’s GMV, which was ‘Nil’ in Q1. However, Paytm is now looking ahead with confidence, expecting a better performance in the future.
Market Strategy
Paytm will continue to lead the market with merchant payment innovations, introducing new devices and bringing together various payment instruments with Merchant Discount Rates (MDR). Additionally, the company will focus on expanding its Insurance and Mutual Fund distribution, which present substantial monetization opportunities.
Stock Details
Despite the financial challenges, Paytm’s shares were trading at ₹462 apiece on Friday afternoon, showing a positive trend with a nearly 5 percent increase from the previous day’s close of ₹445.30.
As we witness Paytm’s journey through ups and downs, we stand by, eager to see how they navigate through these challenges and emerge stronger than before.
