Paytm, led by Vijay Shekhar Sharma, reported a 36% decline in revenue and a loss of Rs 839 crore for the first quarter of FY25.

Vijay Shekhar Sharma's fintech company, Paytm, experienced a sharp decline in its financial performance in the first quarter of fiscal year 2025 (Q1 FY25). The company's operational revenue dropped by 36% to Rs 1,502 crore, compared to Rs 2,342 crore in the same quarter the previous year. The net loss also increased significantly, reaching Rs 839 crore, up from Rs 357 crore in Q1 FY24. This downturn followed strict measures by the RBI against Paytm Payments Bank, which severely limited its business operations and reduced Paytm's parent company market capitalization.

The revenue decline affected several of Paytm's business segments. Revenue from financial services was Rs 280 crore, while marketing services brought in Rs 321 crore. The overall operating revenue was Rs 1,502 crore, and the total revenue, including interest and financial asset gains, was Rs 1,639.1 crore. The company saw reductions in employee benefits costs and payment processing expenses, with the former decreasing by 13.75% to Rs 952.5 crore and the latter falling by 27.66% to Rs 517.1 crore compared to the previous quarter.

Despite cost-cutting efforts, Paytm's expenses remained high. Marketing and promotion expenses increased by 72% to Rs 221.4 crore, and IT infrastructure costs rose by 12.38% to Rs 182.4 crore. Total expenses for the quarter amounted to Rs 2,476.4 crore, down from Rs 2,691.4 crore in the previous quarter. The company reported spending Rs 1.65 to earn a rupee of operating income during the quarter.