The parent company of Paytm, One 97 Communications Ltd, revealed that its Q1FY25 consolidated net loss increased to ₹839 crore from ₹357 crore the previous year as a result of restrictions imposed by the Reserve Bank of India (RBI) on the fintech startup’s bank payments business. In Q1FY25, the company’s operating revenue was ₹1,502 crore, down 36% from ₹2,342 crore in the same quarter last year.
The company said in a stock exchange filing, “Going forward, we expect revenue and profitability to improve, driven by growth in operating parameters such as GMV, an expanding merchant base, recovery in loan distribution business and continued focus on cost optimisation.”
In January of this year, the Reserve Bank of India imposed limitations on Paytm Payments Bank Limited (PPBL), the company’s affiliated subsidiary. Before now, Paytm recorded impairment losses on an investment in PPBL of ₹227.1 crore.
The business recorded ₹1,502 Cr in operating revenue and ₹792 core in earnings before interest, tax, depreciation, and amortization (EBITDA) deficit. As previously said, EBITDA before ESOP was at a loss of ₹545 crore.
Financial services brought in ₹280 crore in revenue, while marketing services brought in ₹321 crore. Contribution profit for the quarter was ₹755 crore, with a 50% margin.