Paytm has reported its numbers for Q2’25, with losses increasing on an year-on-year basis but coming down on a sequential basis. On paper though, the company achieved a PAT (Profit After Tax) of ₹930 crore, thanks to ‘exceptional gain’ from its selling of the Insider events booking business to Zomato. The same quarter from last year saw the company booking a loss of ₹290 crore.
However, keeping the sale proceeds aside, Paytm continues to bleed cash, and in fact at a faster clip compared with last year. Losses without the sale proceeds amount to ₹485 crore, a 70% increase from last year. Though it does represent a 41% decrement compared to previous quarter of this year, when losses were ₹840 crore.
Paytm’s stock price is reflecting the disappointment from these Q2 results, with the stock trading in the red since morning and down nearly 4% at the time of writing.
In terms of other relevant numbers, the company’s operating revenue stood at ₹1,660 Cr, which is up 11% on a sequential basis. Its contribution margin is at 54%, which is up 356bps on a sequential basis, and contribution profit stood at ₹894 Cr, up 18% QoQ. PAT though, keeping the one-time exceptional gains aside, remains in the red, and seems increasing on an yearly basis.
The company seems to have cut some expenses, but those cuts have come largely on the back of layoffs. Its indirect cost has come down by 17% QoQ to ₹1,080 Cr due to reduction in employee costs (down 13% QoQ), marketing expenses and absence of certain one-time expenses incurred in Q1 FY 2025.
Paytm, which has had a rough financial journey ever since its public markets debut, faced severe hit when the Reserve Bank of India halted its payments business due to several, severe lapses in compliance. The company spent almost the entire previous quarter in mitigating the effects of that ban and transferring its existing userbase to other tie-up banks. That ban resulted in the company losing a significant chunk of its financial profits. It also impacted Paytm’s other businesses, all of which were by and large linked to its payments business entity.
