New Delhi: India’s leading fintech player Paytm has marked a major milestone in its corporate journey by reporting a net profit of ₹1.23 billion for the quarter ending June 2025, a dramatic reversal from a ₹8.39 billion loss in the same quarter last year. The turnaround comes at a critical juncture for the company, following months of regulatory challenges and market skepticism after the Reserve Bank of India ordered a wind-down of its Payments Bank earlier this year.
The latest financial results underscore Paytm’s effective restructuring and renewed focus on its core strengths digital payments and lending. The company reported a 28% jump in total revenue, reaching ₹19.18 billion, fueled by an impressive surge in financial services income and an 18% increase in payments revenue. Merchant lending and loan disbursement to small businesses were particularly strong, compensating for subdued personal loan activity.
Notably, Paytm also reduced its operational expenses by 19% year-over-year, bringing them down to ₹20.16 billion. This sharp cost discipline allowed the firm to register a positive core EBITDA of ₹1.02 billion (before accounting for stock-based compensation), further cementing investor confidence in its profitability trajectory.
CEO Vijay Shekhar Sharma, who had vowed to return the company to the black by FY26, appears to have delivered ahead of schedule. His strategy to streamline the business, exit non-performing verticals, and focus on scalable revenue streams has begun to bear fruit. Key steps included the shutdown of the Payments Bank arm, trimming of workforce, and a cautious revival of previously paused services like wallets and BNPL (Buy Now, Pay Later).
The stock market responded positively to the news, with Paytm shares breaching the ₹1,000 mark for the first time in six months, bolstered by optimism around the company’s financial rebound and potential future growth. Analysts believe that the firm’s long-term prospects are promising, especially with expectations of monetization through UPI (Unified Payments Interface) merchant fees and further expansion of its lending services.
Despite regulatory overhang and the slower revival of its personal loans segment, Paytm appears well-positioned to consolidate its role as a profitable, tech-driven financial platform. With a large merchant base, deepening penetration in tier-2 and tier-3 cities, and a more efficient cost structure, the company is set to emerge stronger from its recent setbacks.
Paytm’s profitable quarter signals not just a comeback but a clear transformation one that could redefine its role in India’s rapidly evolving digital finance landscape.