Paytm (One 97 Communications Limited) reported a sharp decline in revenue while posting a significant surge in net profit for Q2 FY25. The company’s revenue dropped by 34.9% year-on-year (YoY) to ₹1,695.50 crore, down from ₹2,519 crore in the same quarter last year.
Despite this revenue decline, Paytm reported a net profit of ₹930 crore, a substantial increase primarily driven by a one-time exceptional gain. The company recorded a one-time gain of ₹1,345 crore from the sale of its movie ticketing business to Zomato, which significantly bolstered its bottom line. Without this gain, Paytm’s profit would have been notably lower.
The company’s profit for the quarter includes an exceptional one-time gain, bringing the total profit to ₹928.3 crore.
These results showcase Paytm’s efforts to streamline its business by divesting non-core operations while focusing on profitability. However, the sharp drop in revenue signals the challenges the company faces in sustaining growth across its core business segments. Investors and analysts will closely monitor Paytm’s future performance as it seeks to navigate a competitive digital landscape while enhancing profitability.
