Paytm, leading payments and financial services company, on Friday said it has achieved operating profitability with EBITDA before ESOP cost at Rs 31 crore, much ahead of its September 2023 guidance.

Paytm's revenue from operations increased to Rs 2,062 crore (no UPI incentive recorded this quarter), a growth of 42 percent YoY and 8 percent QoQ.

The growth was driven by increased adoption by consumers and subscription services by merchant partners along with sustained growth seen in loan distribution and commerce business, said the company.

Paytm'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 was asked to focus 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," he said.

Contribution profit was Rs 1,048 crore in the quarter, with margins consistently improving from 31 percent in December 2021 to 51 percent in December 2022 on account of improved profitability of the payments business and an increased mix of high-margin businesses such as loan distribution.

Net payment margin grew to Rs 459 crore (up 120 percent YoY) on the back of improved profitability in the payments business.

Paytm's EBITDA before ESOP margin stood at 2 percent of revenues as compared to (27 percent) a year ago, due to sustained improvement in contribution profit and strong operating leverage.

The company said it continued to witness strong revenue momentum across its businesses. (KB/IANS)