NEW DELHI: Paytm, India’s leading payments and financial services company, is steadfastly surging ahead on its path of accelerated growth posting revenue of Rs 2,519 crore, 32 per cent growth year-on-year (YoY) in Q2FY24.

This increase in the company’s revenue comes even as the festive earnings got pushed to Q3FY24. Paytm continued to improve operating profitability with EBITDA before ESOP up Rs 319 crore YoY to Rs 153 crore.

Led by growth in net payments margin, up 60 per cent YoY to Rs 707 crore, and loan distribution business, Paytm’s contribution profit of Rs 1,426 crore marks a growth of 69 per cent YoY and its contribution margin improved to 57 per cent from 44 per cent a year ago.

Due to an increase in investments in marketing and employees, the company’s indirect expenses (excluding ESOP cost) have increased 26 per cent YoY to Rs 1,273 crore while its Indirect expenses (as a per cent of revenues) has declined to 51 per cent from 53 per cent in Q2FY23.

Paytm’s loss reduces 49 per cent YoY with net income of (Rs 292 crore), an improvement of Rs 280 crore YoY. The fintech giant’s revenue growth was mainly driven by increase in GMV, merchant subscription revenues, and an increase of loans distributed through its platform.

Its revenue from its core payments business was up 28 per cent YoY to Rs 1,524 crore. Paytm’s Payment Processing Margin is at the higher end of 7-9 bps range due to increase in GMV of non-UPI instruments like Postpaid, EMI and cards, and improvements in payment processing margin on these non-UPI instruments.

The company’s GMV was up 41 per cent YoY to Rs 4.5 lakh crore in Q2FY24. The pioneer of mobile payments expanded its merchant base to 3.8 crore.