Indian fintech company Paytm reported net profit of Rs 123 crore in the quarter ended June 30, 2025 as compared to a net loss of Rs 839 crore in the same period last year, on the back of higher net income and cost savings.

The Vijay Shekhar Sharma-led company had last posted a profit in the July-September quarter of 2024 helped by a one-time gain from the sale of its ticketing business.

Operating revenue jumped by 28% year-on-year to Rs 1,918 crore, due to increase in number of subscription merchants, higher GMV (Gross Merchandise Value) and growth in revenues from distribution of financial

services, said Paytm in a filing with the exchanges.

The company's distribution of financial services revenue increased by 100% year-on-year to Rs 561 crore, driven by growth in merchant loans, trail revenue from DLG (Default Loss Guarantee) portfolio, and improved collection performance.

"Going forward, we expect a higher share of non-DLG disbursements, which reduces upfront DLG costs and also lifetime revenue by corresponding amount. Hence, distribution of financial services revenue growth will be slower sequentially as compared to the disbursements growth," it added.

Paytm had a cash balance of Rs 12,872 crore as of June 2025, as compared to Rs 8,108 crore in the same period last year.

"Our cash balance has increased by Rs 4,764 crore in the last 1 year, primarily on account of monetization of

two non-core assets (entertainment ticketing business, & our stock acquisition rights in PayPay) for Rs 4,386 crore," it added.

Shares of the fintech company closed at Rs 1052.6 per share on the BSE, up 3.37% from the previous close.