Vijay Shekhar Sharma-led Paytm posts Rs 1,911 crore revenue in Q4 FY25; loss narrows to Rs 545 crore

One97 Communications Ltd., the parent of fintech platform Paytm, reported operating revenue of Rs 1,911 crore for the quarter ended March 2025, with its net loss narrowing to Rs 545 crore.

The January–March results mark a slight improvement from the Rs 550 crore loss in the same quarter last year, as Paytm's cost-cutting and higher-margin businesses helped offset a decline in revenue from year-ago levels.

Revenue and EBITDA

Paytm's Q4 FY25 revenue from operations stood at Rs 1,911 crore, about 16% lower than the Rs 2,267 crore reported in Q4 FY24. On a sequential basis, however, revenue grew 5% over the previous quarter, aided by growth in financial services distribution and the inclusion of Rs 70 crore from a government UPI incentive during the quarter.

"In Q4 FY 2025, we achieved operating revenue of Rs 1,911 crore, with an increase in revenues from the distribution of financial services and Rs 70 crore of UPI incentive for FY 2025. Excluding the UPI incentive, revenue increased 1% QoQ, despite the festive season surge in payments volume in the previous quarter," the company said in its stock exchange filing.

The contribution profit–revenue after payment processing and promotional costs was Rs 1,071 crore in Q4 with a healthy 56% margin, reflecting a richer revenue mix from high-margin offerings. Notably, Paytm’s financial services revenue (from lending, insurance and other distribution) rose 9% quarter-on-quarter to Rs 545 crore, contributing to the higher margins.

The earnings before interest, taxes, depreciation and amortisation (EBITDA), before accounting for employee stock option (ESOP) expenses, turned positive. Paytm posted an EBITDA before ESOP cost of Rs 81 crore in Q4 FY25, an improvement of Rs 121 crore over the previous quarter.

The company highlighted that it "achieved EBITDA Before ESOP profitability as per guidance" in the quarter. Even after including regular ESOP costs, EBITDA experienced a loss of Rs 88 crore, which was significantly narrower than the quarter-ago level.

Net loss and exceptional items

Paytm's net loss for the quarter narrowed to Rs 545 crore, compared to a loss of Rs 550 crore in the year-ago period. This was despite a drop in revenue, as the firm continued to trim expenses and saw improved operational profit metrics. 

However, the Q4 FY25 bottom line was heavily impacted by a one-time exceptional charge of Rs 522 crore. The company said this exceptional cost was largely due to an accelerated ESOP (employee stock option) expense and a small asset impairment.

On April 16, 2025, Paytm's Founder and CEO Vijay Shekhar Sharma “informed the Company that he has voluntarily forgone all 2.1 crore ESOPs granted to him", a move that led to a Rs 492 crore non-cash charge in the quarter for accelerating the vesting of those stock grants. An additional Rs 30 crore impairment related to an associate investment was also recorded.

"Excluding these exceptional items, in Q4 FY 2025, PAT improved to Rs (23) crore," the company noted, indicating that without the one-off costs, Paytm's net loss would have been only Rs 23 crore, nearly breakeven for the quarter.

Focused on achieving profitability

Paytm emphasised that it is focused on achieving profitable growth. The net payment margin from its payments business came in at Rs 578 crore (including the UPI incentive) for Q4, and the firm managed to reduce indirect expenses by 16% year-on-year in the quarter through sustained cost optimization.

Non-sales employee costs alone were down 36% compared to the same period last year, reflecting efficiency improvements, and the company's cash balance stood at a robust Rs 12,809 crore as of March 2025, providing an ample cushion as it continues to invest in growth.

Paytm outlined key areas of focus for the business. The company said it will continue to drive user engagement, “continue to drive MTU growth by focusing on product innovation and disciplined investments in marketing” to expand its consumer base, and will keep strengthening its merchant payments ecosystem with new payment devices and other innovations for merchants.

It is also “exploring opportunities in select international geographies, which will start showing results after 3 years”, indicating a long-term plan to extend Paytm’s platform beyond India.

Additionally, it plans to boost its high-margin financial services business by expanding its network of partners and products, building on the momentum in lending and insurance distribution.