Paytm Slumps 6% After Clocking INR 930 Cr Profit In Q2

Shares of Paytm nosedived almost 6% to INR 683.8 apiece on the BSE in early trading hours today (October 22) after the fintech major announced its September quarter earnings. 

The stock crashed even as the Vijay Shekhar Sharma-led company swung back to the black with a consolidated profit after tax (PAT) of INR 930 Cr in Q2 FY25 as against a loss of INR 292 Cr in the year-ago period.

The fintech major achieved profitability in Q2 FY25, thanks to a one-time exceptional gain of INR 1,345 Cr on account of sale of its entertainment ticketing business to foodtech major Zomato.

However, Paytm’s operating revenue plunged 34% year-on-year to INR 1,1660 Cr in the reported quarter from INR 2,519 Cr in the year-ago period. Sequentially, it increased over 10% from INR 1,502 Cr in the June quarter on the back of growth in its bread-and-butter payments and financial services business.

Paytm said that its payment services business contributed INR 981 Cr to its revenue during the quarter under review, up 9% quarter-on-quarter, led by an increase in gross merchandise value (GMV), focus on monetisation and increase in merchant subscriptions.

Meanwhile, Paytm’s financial services arm generated revenue to the tune of INR 376 Cr, up 34% QoQ. The growth in this segment was driven by an increase in collection bonus in merchant loans and higher share of merchant loans which have better take rate.

Paytm managed to narrow its adjusted EBITDA (excluding ESOP cost) loss by 221% to INR 186 Cr in Q2 FY25 from a loss of INR 545 Cr in the corresponding quarter last year. The fintech major had posted an adjusted EBITDA profit of INR 153 Cr in the June quarter.

“We remain committed to reach EBITDA before ESOP profitability by Q4 FY25,” Paytm said in an earnings statement.

At 2:41 PM, shares of Paytm were quoting at INR 696.45 apiece on the BSE, down 4% from the previous close. The stock is up 8% on a year-to-date basis.