One97 Communications swings to Rs 208.5 Cr loss in Q3

One97 Communications, Paytm’s parent company, posted a Rs 208.5 crore net loss in the third quarter of FY25, marking a reversal from the profit of Rs 930 crore made in the previous quarter (Q2).

However, the net loss decreased from the Rs 221.7 crore loss incurred in the third quarter of FY24.

The fintech company reported a 35.87% year-on-year decline in revenue from operations for the third quarter of FY25, at Rs 1,827.8 crore, from Rs 2,850.5 crore in the same period last year.

Sequentially, revenue grew 10.14% from Rs 1,659.5 crore in Q2 FY24, led by a rise in gross merchandise value (GMV) during the festive season and higher subscription revenues.

Total income for the quarter stood at Rs 2,016.5 crore, a 32.76% YoY drop from Rs 2999.1 crore in Q2 FY25. Sequentially it increased about 10% from Rs 1834 crore in Q2.

Total expenses dropped 30.98% year-on-year to Rs 2,219.8 crore from Rs 3216.3 crore in Q3 FY24. Expenses were down 1.11% sequentially from Rs 2,244.8 crore in the previous quarter.

Other highlights

The financial services segment, which includes merchant and personal loans, experienced a sharp 34% quarter-on-quarter revenue increase, at Rs 502 crore. Merchant loan distribution surged to Rs 3,831 crore during the quarter, a rise from Rs 3,303 crore in Q2 FY 2025. Over 50% of these loans were distributed to repeat borrowers, said Paytm, in a statement.

Paytm added 5 lakh merchant subscribers for devices in Q3 FY 2025, reaching a cumulative subscriber base of 1.17 crore.

In a bit to improve margins in services from merchants, Paytm redeployed refurbished devices at new merchant locations, minimising capital expenditure while improving revenue per merchant.

Paytm’s Default Loss Guarantee (DLG) model has been a game-changer in its lending business. This approach not only helps Paytm connect merchants with loans but also ensures the company earns more over the lifetime of those loans, thanks to better repayment rates. The outstanding AUM amount for DLG portfolios jumped to Rs 4,244 crore this quarter, up from Rs 1,651 crore in the previous quarter.

(The copy was update with more details.)