On Tuesday, parent company of Paytm One97 Communications Limited reported 15.7% year-on-year decline in revenue for January-March 2025 quarter (Q4 FY25) at Rs 1,911.5 crore. That was lower than Rs 2,267.1 crore in the same period last fiscal year (Q4 FY24).
In spite of the increase in other income, which rose by about Rs 100 crore to Rs 223.8 crore, the overall revenue performance of the company was poor, as reflected in its stock exchange filing.
This rise in other income wasn't enough to offset higher challenges, and the company reported a net loss of Rs 544.6 crore for the quarter. This loss was just shy of the Rs 550.5 crore loss for the same quarter last year, according to the company reports.
Paytm's EBITDA after excluding ESOP charges stood at Rs 81 crore. ESOP expenses, though very high, stood at Rs 169 crore. In the near future, such expenses will decline.
A sudden news in one of the previous months, Paytm CEO Vijay Shekhar Sharma forgave 21 million ESOPs, one-time non-cash charges that amounted to Rs 492 crore.
Apart from that, Paytm also experienced a decrease in revenue from UPI incentives primarily because of reduced government payouts. It is optimistic about receiving guidance from regulators to clear merchant discount rates (MDR) on high-value UPI transactions sooner, which in the end could bring it an enhanced margin in profit.
For the fourth quarter of FY25, Paytm's Payment Services business recorded Rs 1,098 crore revenue, including other operating income. With India's huge MSME sector offering huge growth prospects, the mobile payment merchant base is over 10 crore, and half of them are expected to require software or hardware support.
The Financial Services business remained a growth driver, with quarter-on-quarter (QoQ) revenue increasing 9% to Rs 545 crore.
Paytm paid out Rs 4,315 crore in merchant loans during the quarter, and over half of it was to repeat customers. This reflects high customer loyalty and good credit quality.
Pre-earnings, Paytm's holding company saw shares declining 5.72% on the National Stock Exchange (NSE).
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