Paytm aims to be profitable in Q4 of FY25

One97 Communications, which owns the Paytm brand, expects to be profitable in the last quarter of FY25, as per the commitment made during the company's earning call, a top official of the company said on Friday.

During the launch of a Made in India display-enabled soundbox, Paytm Founder and CEO Vijay Shekhar Sharma told PTI that the path to profitability will be driven by core business and new areas where the company is making investments.

"I said that in our earnings call and announced in public that in Q4 of this year (FY25) we would want to be and working towards making it profitable," Sharma said.

The company's management during the earning call for December quarter had said that it is working towards EBITDA before ESOP profitability in March 2025 quarter, excluding UPI incentive.

For the third quarter, Paytm reported narrowing of consolidated loss to Rs 208.5 crore mainly on account of reduction in expenses, payment processing charges and employee costs.

The company had posted a loss of Rs 221.7 crore in the same period a year ago, the company said.

Revenue from operations of Paytm declined 35.8 per cent to Rs 1,827.8 crore during December quarter 2024 from Rs 2,850.5 crore a year ago due to a dip in income from payments and financial services (34 per cent), payment services (40 per cent) and marketing services (48 per cent).

The revenue was, however, up 10 per cent quarter-on-quarter, showing a sign of recovery in the company's business.

Talking about the new soundbox with a display, Shekhar said it has been developed based on feedback from premium merchants who would not like customers' transactions to be heard by other people around.

"Paytm soundbox has been featured in small shops. Now we are talking about large shops who want muted soundboxes. It will allow us to go to large malls, shopping complexes where customers make high value purchases and make payment by phone," he said.