Paytm surprises markets with sooner than promised profitability, revenue jumps to ₹2,062 crore

Paytm, India’s leading payments and financial services company and the pioneer of QR and mobile payments, has announced Q3FY23 results reporting.

That it has achieved its operating profitability with EBITDA before ESOP cost at ₹31 Crore, much ahead of its September 2023 timeline. The company’s revenue from operations increased to ₹2,062 crore (no UPI incentive recorded this quarter), a growth of 42% YoY.

The company’s founder and CEO, Vijay Shekhar Sharma, wrote a letter to shareholders announcing the achievement.

“This has been made possible due to the relentlessly focused execution by our team. The team focused on growth with quality revenues that contribute to the bottom line. We have achieved this milestone without losing sight of growth opportunities and keeping all compliances as well as risk factors under a strict watch,” said Vijay Shekhar Sharma.

Sharma added that the next key milestone for Paytm is free cash flow generation. “With our focus on growth and keeping a tight vigil on operational risk and compliances, I am very confident that we will soon achieve our next milestone of becoming a free cash flow generating company,” he added. Paytm’s EBITDA before ESOP margin stood at 2% of revenues as compared to (27%) a year ago.