Paytm made public of its ambitions to become profitable in one-to-two quarters, after it announced a lower sequential third-quarter adjusted loss as its payments division recovered from the winding down of its payments bank operation.

Paytm declared a loss of Rs 204 crore ($23.6 million) before unusual items and tax for the third quarter ended Dec. 31, compared to a Rs 407 crore loss in the second quarter.

Due to a one-time gain from the sale of its ticketing business to food delivery startup Zomato, it posted its first profit since listing in the most recent quarter.

Paytm reported that its EBITDA before the expense of employee stock options, a crucial indicator for the business, was down 410 million rupees, down from Rs 186 crore the previous quarter.

Concerns regarding Paytm's digital payments business were raised after the Reserve Bank of India shut down the company's banking division in January 2024, citing ongoing compliance problems.

Operational revenue reached Rs 1,828 crore, a 10.1 percent sequential increase. Its financial services revenue, which includes its lending business, increased by 34 percent, while its payment services revenue increased by eight percent.

Lower marketing and personnel-related expenses were the main factors of the company's 31 percent year-over-year and one percent sequential expense decline.

In addition, Paytm raised the default loss guarantee it provided to its lending partner SMFG India Credit for loans given to merchants from 2.25 billion rupees to Rs 350 crore.