India’s fintech giant Paytm has made a notable comeback—reporting a net profit of ₹1.23 billion ($14.24 million) for the quarter ending June 30, 2025. This marks its first profit since September 2024, when a one-time ticketing business sale had momentarily lifted its numbers.
Here’s a quick breakdown of what’s driving the rebound:
Lending Boom & Cost Control Fuel Recovery
- Revenue surged 28% year-on-year to ₹19.18 billion.
- Financial services revenue, mainly from lending, doubled, while payment services saw an 18% rise.
- Expenses dropped 19% to ₹20.16 billion, showing a laser focus on cutting costs.
Bouncing Back from Setbacks
- The firm had posted a loss of ₹8.39 billion in the same quarter last year, after the RBI ordered the shutdown of its banking unit in January 2024.
- Since then, Paytm has streamlined operations, reduced overheads, and zeroed in on high-performing verticals.
Lending Trends: Strong Merchant Loans, Cautious Personal Loans
- Merchant lending is thriving, while personal loan growth remains subdued amid stricter credit conditions.
- Paytm noted “early signs of recovery” in personal loan demand.
Key Metrics
- EBITDA (before ESOP cost) came in at ₹1.02 billion.
- Paytm shares rose 3.3%, hitting a seven-month high ahead of the results.
With profitability now back on the table, Paytm expects earnings to improve further in the coming quarters, riding on its growing financial services arm and streamlined cost structure.