Paytm posts strong PAT gains in Q4 FY25, achieves EBITDA before ESOP profits

New Delhi, May 6 Payments and financial services company Paytm on Tuesday reported a strong performance for the March quarter of FY25, demonstrating continued growth across its core business segments.

The company achieved a revenue of Rs 1,911 crore, reflecting a 5 per cent sequential increase, and marked a significant milestone with EBITDA before ESOP profitability of Rs 81 crore.

The company also made significant progress in profitability, reducing its profit after tax (PAT) loss to just Rs 23 crore, a Rs 185 crore improvement from the previous quarter.

This excludes a one-time ESOP charge of Rs 522 crore. Founder and CEO Vijay Shekhar Sharma has voluntarily surrendered 2.1 crore ESOPs, resulting in a one-time non-cash accounting charge but setting the stage for a substantial decline in ESOP costs from Q1 FY26 onwards.

In an earnings release statement, the company said starting from Q1 FY26, ESOP cost will be substantially lower with Q1 FY26 ESOP cost estimated to be in the range of Rs 75-100 crore as against Rs 169 crore in Q4 FY25.

This performance underscores Paytm’s focus on operational efficiency and disciplined cost management. Contribution profit rose to Rs 1,071 crore, up 12 per cent QoQ, with contribution margin improving to 56 per cent. The company closed the quarter with a robust cash balance of Rs 12,809 crore.

In Q4 FY25, Paytm reported Payment Services revenue (including other operating revenue) of Rs 1,098 crore. With India’s MSME sector offering significant opportunities, the potential merchant base for mobile payments is estimated at over 10 crore, nearly half of which may require software or hardware solutions.

The financial services segment continued to be a growth engine, with revenue increasing 9 per cent QoQ to Rs 545 crore. Paytm disbursed Rs 4,315 crore in merchant loans in Q4 FY25, with over half the loans given to repeat borrowers, showcasing strong credit quality and customer retention.

Average Monthly Transacting Users (MTUs) climbed to 7.2 crore, while the merchant base for Paytm’s payment devices expanded by 8 lakh, reaching 1.24 crore by the end of March 2025. The company also continued to drive operational efficiencies, reducing indirect expenses by 1 per cent QoQ to Rs 991 crore in Q4 FY25.

Paytm closed the quarter with a strong cash balance of Rs 12,809 crore, positioning it well to invest in future growth opportunities.

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