Paytm Aiming for EBITDA Breakeven by FY27, Supported by Merchant Focus and Loan Growth

Paytm is set to reach EBITDA breakeven by FY27, driven by its merchant service focus and growth in loan distribution business. The company is going to distribute higher-ticket personal and merchant loans to lower-risk, high credit-worthy borrowers in association with banks and NBFCs. This transformation targets contribution margins to improve to 58% in FY28. Paytm expects a revenue growth rate of 25% p.a. over FY25-28, with revenue from financial services at a 33% CAGR. The company expects to achieve positive adjusted EBITDA by Q4FY25 and overall EBITDA breakeven in FY27, with an estimated profit after tax of INR12.1 billion for the same year.

 

Source: Motilal Oswal Research