Paytm’s quarterly revenue up 39% on increased loan demand; ₹359 crore YoY improvement in EBITDA before ESOP

The Paytm logo is pasted on a wall at Paytm's office in Delhi
Paytm (Image: MeelBijendra/Nandini)

MUMBAI, July 22 (MeelBijendra) – Paytm‘s parent One97 Communications Ltd on Friday released its Q1 FY24 results in which the company’s revenue grew by 39% YoY to INR 2,342 crore. In the previous quarter i.e. Q4 FY23, the company had a revenue of INR 2,152 crore (One 97 Communications has excluded UPI incentives of INR 182 crore from the revenue of Mar-23).

Paytm has reported revenue of INR 1,414 crore from Payment Services, INR 522 crore from Financial Services, and INR 405 crore from Commerce & Cloud in Q1 FY24. Paytm, the second-largest digital payment app in India by market share, says it has reported a rise in quarterly revenue on the back of rising loan demand.

The company reported 80% YoY growth in profit at INR 1304 Crore in Q1 FY24 as against INR 726 Crore in the corresponding quarter last year. On the other hand, Paytm reported an EBITDA before ESOP of INR 84 Cr in Q1 FY24 as against a loss of INR 275 Cr in Q1 FY23 i.e. an improvement of INR 359 Cr YoY in EBITDA.

Q1 FY24₹84 Cr
Q4 FY23₹52 Cr
Q3 FY23₹31 Cr
Q2 FY23₹(166) Cr
Q1 FY23₹(275) Cr
Source: Paytm

Paytm’s net payment margin stood at INR 648 crore in Q1 FY24 as against INR 384 crore in the corresponding quarter last year, a growth of 69% on a YoY basis. Note that the Net Payment Margin is the sum of Payment Processing Margin and Membership Revenue.

Payment processing margin is the transaction fee charged to the merchant minus the fee paid to the issuer – and this is on top of Paytm’s 7 to 9 bps guidance, even without the UPI incentive as growth in GMV of non-UPI instruments like EMIs and cards and Lower interchange cost for Wallet, post interoperability circular by NPCI, and Postpaid due to better portfolio quality.

Paytm’s subscription revenue comes from the merchants paying various monthly fees for services including devices with 7.9 million merchant subscriptions. The company’s merchant membership including payment devices grew by 109% YoY to 79 lakh in Q1 FY24 as against 38 lakh in Q1 FY23.

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