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Fintech firm Paytm reported a 33.8% drop in operational revenue to Rs 1,501.6 crore for Q1 FY25, compared to Rs 2,267.1 crore in Q4 FY24, according to its unaudited consolidated quarterly report filed with the National Stock Exchange. Compared to the same quarter in the previous fiscal year (Q1 FY24), the revenue decreased by 35.87% from Rs 2,341.6 crore.
Additionally, Paytm earned Rs 137.5 crore from interest and gains on financial assets in Q1 FY25, bringing its total revenue to Rs 1,639.1 crore. On the expense side, employee benefits constituted 38.5% of the total expenditure, decreasing by 13.75% to Rs 952.5 crore (including Rs 246.8 crore in share-based payment expenses) from Rs 1,104.4 crore in Q4 FY24.
Payment processing expenses dropped 27.66% to Rs 517.1 crore compared to Rs 714.8 crore in the previous quarter. However, spending on marketing and promotions rose by 72% to Rs 221.4 crore, and IT infrastructure costs increased by 12.38% to Rs 182.4 crore. Overall, the company’s total expenses fell by 8% to Rs 2,476.4 crore in Q1 FY25, down from Rs 2,691.4 crore in Q4 FY24.
These financial results led to a significant rise in quarterly losses, which increased by over 52.6% to Rs 840 crore in Q1 FY25, up from Rs 550.5 crore in Q4 FY24. Compared to Q1 FY24, losses surged by 134.4% from Rs 358.4 crore. On a unit level, Paytm spent Rs 1.65 to earn one rupee of operating income during the quarter.
Despite regulatory challenges and revenue declines, Paytm remains optimistic about its future. The company highlighted a rebound in key metrics, such as a growing merchant base, which now exceeds 1.09 crore, and daily transaction values approaching pre-pandemic levels. The customer base remains stable at 7.8 crore, with an increasing average transaction value per customer. Furthermore, Paytm has focused on cost optimization, including reducing employee costs and expanding its fintech offerings.
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