Paytm's Q1 losses surge to ₹839cr, revenue plummets by 36%
One 97 Communications Ltd, the parent company of Paytm, reported a significant increase in its consolidated net loss for the first quarter of fiscal year 2025. The net loss ballooned to ₹839 crore, a stark rise from ₹357 crore reported in the same period last year. Additionally, the fintech firm saw its revenue from operations decline sharply by 36% to ₹1,502 crore compared to ₹2,342 crore in the corresponding period last year.
RBI restrictions on Paytm Payments Bank impact financials
The financial setback is largely attributed to the Reserve Bank of India (RBI) imposing restrictions on Paytm's associated entity, Paytm Payments Bank Limited (PPBL), earlier this year. The RBI's curbs have significantly impacted the company's financial performance. Prior to these restrictions, Paytm had written off an investment worth ₹227.1 crore in PPBL and accounted for it as impairment losses.
Paytm's share price increases following Q1 results announcement
Contrary to expectations, the announcement of these financial results led to a slight increase in Paytm's share price. As of 11:25 am, Paytm shares were trading at ₹451 apiece, marking an increase of 1.5%. In comparison, Nifty and Sensex were trading in the red. At the time of writing, the former was down 140 points at 24,660 while the latter tanked 315 points to 81,025.
