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Paytm's Q1 profit attributed to cost cuts
Business Standard
|July 26, 2025
The first quarter of 2025-26 (Q1FY26) turned profitable for One97 Communications, parent of fintech player Paytm, after a steep loss of ₹838.9 crore in Q1FY25.
The net profit of ₹122.5 crore in Q1FY26 was largely driven by sharp cost controls. The fintech firm had posted a net loss of ₹539.8 crore in Q4FY25.
Paytm's indirect expenses, excluding ESOP (employee stock ownership plan) costs, were down 19 per cent year-on-year (Y-o-Y) to ₹1,049 crore in Q1FY26 from ₹1,301 crore in Q1FY25.
Most notably, the company slashed its marketing expenditure by 65 per cent to ₹62 crore in Q1FY26 from ₹177 crore in Q1FY25. Sequentially, this cost was down 39 per cent from ₹102 crore in Q4FY25.
Paytm's total direct expenses rose marginally at 3 per cent to ₹767 crore in Q1FY26 from ₹746 crore a year ago. Sequentially, they contracted 9 per cent from ₹840 crore in Q4FY25.
That said, Paytm is not actively looking to cut down on costs further, with the company intending to invest in specific business lines.
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