Paytm Share Price Reaction: How This Fintech Company Has Performed In Q3FY25?

Leading financial technology (Fintech), Paytm share price witnessed a buying trend on Monday, January 20, after its net loss narrowed sharply and better than estimates for the third quarter of FY25. In Q3 of the current fiscal, Paytm posted a net loss of Rs 208 crore, which narrowed from loss of Rs 220 crore in Q3FY24. Also, the net loss is better than Jefferies estimates of Rs 315 crore net loss in Q3FY25.

At the time of writing, Paytm's share price traded at Rs 906.60 apiece, up by 0.8% on BSE with a market cap of Rs 57,686.99 crore. The stock surged overall by 2.2% on BSE, by hitting an intraday high of Rs 919.45 apiece. The stock was closer to its 52-week high of Rs 1,063.00 apiece.

Paytm said, Profit After Tax (PAT) improved significantly by Rs 208 Cr QoQ to Rs (208) Cr, reflecting consistent progress toward profitability.

Meanwhile, EBITDA before ESOP costs improved significantly by Rs 145 Cr quarter-on-quarter (QoQ), narrowing to Rs (41) Cr. The company achieved a contribution margin of 52%, with a contribution profit of Rs 959 Cr, reflecting a 7% growth compared to the previous quarter.

Moreover, operating revenue stood at Rs 1,828 Cr for Q3 FY25, marking a 10% sequential growth. It said, this growth was driven by increase in GMV, healthy growth in subscription revenues and increase in revenues from distribution of financial services.

Furthermore, Paytm's revenue from payment services grew by 8% QoQ to ₹1,059 Cr, supported by an increase in GMV, which reached ₹5.0 Lakh Cr (up 13% QoQ). The merchant subscriber base for devices grew to 1.17 Cr, with a net addition of 5 Lakh new subscribers during the quarter.

Also, in the quarter, Paytm received approval from NPCI to onboard new UPI users, driving an increase in Monthly Transacting Users (MTUs) to 7.2 Cr by December 2024 as compared to 6.8 Cr in September 2024. The company plans to drive growth in the consumer base by continuing to develop innovative products, and disciplined investments in brand and performance marketing.

Additionally, in the quarter, the company distributed merchant loans worth ₹3,831 Cr during the quarter, versus ₹3,303 Cr in Q2 FY 2025, with over 50% of loans provided to repeat borrowers. Personal loans disbursed in Q3 FY25 were worth ₹1,746 Cr, primarily in distribution only model. The company has resumed Personal loans for distribution and collection model for a tight cohort of new and repeat customers, who have demonstrated steady asset quality.

Paytm stated that it remains committed to driving innovation by focusing on comprehensive merchant lifecycle solutions, accelerating device deployment in tier-2 and tier-3 cities, and expanding its financial services offerings. With a robust cash balance, the company emphasized that it is well-equipped to seize market opportunities while adhering to a compliance-first approach across all its operations.