Paytm Surprises Markets With Ahead of Schedule Profits,Revenue Jumps To ₹2,062Cr

The company continued to witness strong revenue momentum across its businesses. Paytm’s revenue from operations increased to ₹2,062 crore (no UPI incentive recorded this quarter), a growth of 42% YoY and 8% QoQ, driven by increased adoption by consumers and subscription services by merchant partners along with sustained growth seen in loan distribution and commerce business. Revenue from financial services, which is majorly loan distribution, now accounts for 22% of total revenues, up from 9% in Q3 FY2022.

Contribution profit was ₹1,048 Cr in the quarter, with margins consistently improving from 31% in Dec-21 to 51% in Dec-22 on account of improved profitability of payments business and increased mix of high margin businesses such as loan distribution. Net payment margin grew to ₹459 Cr (up 120% YoY) on back of improved profitability in the payments business.