Revenue from operations increased 10.14% quarter on quarter (QoQ) but fell by 35.88% year over year (YoY) to Rs 1,827.8 crore in the quarter ended 31 December 2024.

On the segmental front, Payments & Financial Services revenue declined by 34% YoY to Rs 1,505 crore. Revenue from Payment Services was Rs 1,003 crore (down 40% YoY), revenue from Financial Services and Others was at Rs 502 crore (down 17% YoY) and revenue from Marketing Services stood at Rs 267 crore (down 48% YoY).

Further, other operating revenue amounted to Rs 56 crore, up 10% YoY.

In the third quarter of FY25, contribution profit was Rs 959 crore, down 37% YoY but up 7% QoQ. Contribution margin stood at 52% in Q3 FY25 as against 53% in Q2 FY25 and 54% in Q3 FY24. “Contribution margin has marginally come down QoQ due to an increase in DLG cost in this quarter as the amount disbursed under the DLG program more than doubled QoQ (largely because we started DLGs in the middle of the previous quarter,” the company said in a statement.

EBITDA before ESOP was Rs -41 crore, an improvement of 145 crore from Q2 FY 2025, due to growth in revenues and contribution profit, and lower indirect expenses.

Paytm’s reported EBITDA improved by 181 crore QoQ, due to lower ESOP costs. It expects ESOP costs to reduce materially going forward (detailed schedule of future ESOP cost is given later).

In Q3 FY 2024, gross merchandise value (GMV) grew by 13% QoQ, partly boosted by the festive season. In this quarter, payment processing margin was comfortably above the guided 3 bps margin (excluding UPI incentive) and is expected to be in the range of 5-6 bps (including UPI incentives) for the year.

As of December 2024, merchant subscriptions were at 1.17 crore, an increase of 5 lakh QoQ, driven by higher revenue per merchant.

Capex for Q3 FY25 was Rs 80 crore, taking the 9M FY25 capex to Rs 176 corer versus Rs 680 crore for 9M FY24. Lower capex is largely on account of reduction in cost of devices and focus on refurbishment of devices (cost of refurbishment of devices is included in other indirect costs).

Merchant loans distribution continues to see strong growth with a distribution of Rs 3,831 crore during the quarter, versus Rs 3,303 crore in Q2 FY25, with a significant proportion of merchant loans distributed under the DLG model. More than 50% of loans distributed are to repeat borrowers.

Paytm is India's leading mobile payments and financial services distribution company.