Paytm posts 1st-ever profit of `122.5 cr in Q1

New Delhi: Fintech firm One97 Communications, which owns the Paytm brand, reported its first-ever consolidated net profit at Rs 122.5 crore in the quarter ended June 2025, mainly on account of cost optimisation and an increase in payment revenue. Paytm had posted a net loss of Rs 840 crore in the year-ago period.

“EBITDA and PAT turned profitable at Rs 72 crore and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income,” Paytm said in a statement.

The company slashed marketing and promotional expenses by more than half to Rs 99.8 crore during the reported quarter from Rs 221.4 crore a year ago and Rs 142.7 crore in the March 2025 quarter.

Paytm reduced employee benefits by about Rs 300 crore or one-third to about Rs 643 crore from Rs 952.5 crore on a year-over-year basis.

While the company increased sales employee cost by 19 per cent on a YoY basis to Rs 266 crore, it recorded a reduction in non-sales employee cost by 28 per cent YoY to Rs 346 crore due to the use of artificial intelligence in various processes across its business. Paytm’s average number of sales employees increased by 23 per cent YoY basis to 38,945.

The consolidated revenue from operations in the reporting quarter increased by

about 28 per cent to Rs 1,917.5 crore from Rs 1,501.6 crore

in the June 2024 quarter mainly on account of an increase in payment processing margins.

“In the first quarter of FY’25, payment services revenue (including other operating revenue) was up 23 per cent YoY at Rs 1,110 crore. Net payment revenue was up 38 per cent YoY at Rs 529 crore due to an increase in payment processing margin and device,” the company said.