Paytm's net loss widens to ₹839 crore in Q1: ‘On path to recovery’

Paytm Q1 results: Paytm revenue from operations declined 36 per cent to ₹1,502 crore in Q1FY25 as against ₹2,342 crore in the year-ago period.

Updated on: Jul 19, 2024, 14:59:16 IST

By HT News Desk | Edited by Mallika Soni

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One 97 Communications Ltd, Paytm's parent company, reported its Q1FY25 consolidated net loss widened to ₹839 crore from ₹357 crore a year ago following Reserve Bank of India (RBI) curbs on the fintech firm's payments bank business. The company's revenue from operations declined 36 per cent to ₹1,502 crore in Q1FY25 as against ₹2,342 crore in the year-ago period.

Paytm Q1 results: A QR code sticker of the digital payment app Paytm is seen outside a grocery store in Kolkata, India. (Reuters)

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The company said in a stock exchange filing, “Going forward, we expect revenue and profitability to improve, driven by growth in operating parameters such as GMV, an expanding merchant base, recovery in loan distribution business and continued focus on cost optimisation.”

The Reserve Bank of India placed restrictions on the firm’s associated entity Paytm Payments Bank Limited (PPBL) in January this year. Earlier, Paytm wrote off ₹227.1 crore worth of investment in PPBL and accounted for it as impairment losses.

The company has reported an operating revenue of ₹1,502 Cr, with Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) loss standing at ₹792 core . EBITDA before ESOP stood at loss of ₹545 crore, as stated previously.

Revenue from financial services amounted to ₹280 crore, while revenue from marketing services was ₹321 crore. During the quarter, contribution profit was at ₹755 crore, with a 50% margin.

Paytm spokesperson said, “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."

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