Paytm's Q3 net loss narrows to ₹208cr, revenue dips 36%
What's the story
One 97 Communications, the parent company of fintech giant Paytm, has posted a net loss of ₹208.3 crore in the third quarter of FY25. This is a decline from the third-quarter net loss of ₹219.8 crore in the previous year. Despite the reduced losses, the company witnessed a 36% year-on-year (YoY) decline in its consolidated revenue from operations during the period.
Revenue decline
Sequential revenue growth of 10%
Paytm's consolidated revenue from operations for Q3 FY25 declined to ₹1,827.8 crore, compared to ₹2,850.5 crore in the same period last year. However, the company did witness a sequential growth of 10% in its revenue. The firm credited the growth to an increase in Gross Merchandise Value (GMV), a rise in subscription revenues, and higher earnings from distribution of financial services.
Performance drivers
Factors contributing to Paytm's financial performance
The company's GMV increased 13% quarter-on-quarter (QoQ) to ₹5 lakh crore. Paytm's Payment services revenue also experienced a QoQ growth of 8% to ₹1,059 crore in the December quarter. Its Financial services revenue saw a massive 34% QoQ growth to ₹502 crore. The net payment margin increased 5% QoQ to ₹489 crore mainly due to higher subscription revenue.
Statistics
User base and stock performance
In Q3 FY25, Paytm posted an average of seven crore Monthly Transacting Users (MTU), a marginal decline from the 7.1 crore MTU in Q2 FY25. This was attributed to a lower exit run-rate of 6.8 crore MTU at the end of Q2 FY25. At the time of writing this article, shares of Paytm were trading 0.69% lower at ₹894.5 each on the BSE, mirroring investor sentiment after these financial results.