One97 Communications, the parent of fintech major Paytm, on May 6 reported its consolidated net loss narrowed marginally to Rs 540 crore for the quarter ended March 31, 2025.
The higher loss came after the company reported a one-time cost of Rs 522 crore during the quarter.
Without the exceptional item, the company's net loss stood at Rs 18 crore during the quarter. It also reported EBITDA positive with a surplus of Rs 81 crore during Q4.
The Noida-based company reported consolidated net loss of Rs 550 crore in the year-ago period.
The firm's revenue from operations fell 16% to Rs 1,912 crore in Q4FY25 from Rs 2,267 crore in Q4FY24. However, it has reported a 5 percent quarter-on-quarter (QoQ) growth in revenue during the March quarter.
On May 6, Paytm's shares on BSE closed nearly 6% lower at Rs 816.5 apiece.
"In Q4FY2025, 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 FY2025. Excluding the UPI incentive, revenue increased 1% QoQ, despite the festive season surge in payments volume in the previous quarter," Paytm said in a stock exchange filing.
The company's one-time cost was that it had granted 21 million Employee Stock Options (ESOPs) to the Managing Director and CEO of the Company, Vijay Shekhar Sharma, who is also the founder, vesting of which was subject to the achievement of specified milestones over the prescribed period.
It had also earmarked some funds for the markets regulator SEBI regulations for a settlement, which is under discussion with the regulator.
Full year results
Paytm reported a 28 percent decline in full-year revenue at Rs 7,625 crore during FY 25, compared with Rs 10,524 crore it reported in FY 24.
However, the company's net loss has narrowed dramatically to Rs 663 crore during FY 25, compared to Rs 1,422 crore it reported during FY 24.
The massive decline came after RBI imposed restrictions on Paytm Payments Bank Limited (PPBL), the sister company of One97 Communications On January 31, 2024, which runs the popular Paytm brand.
The regulator asked PPBL to stop all transactions, including money transfers, deposits and top-ups through the platform, virtually rendering their operations impossible once balances in those accounts were emptied. This also meant that Paytm’s UPI operations were also in limbo, as PPBL was the banking provider on the Paytm app.
Key metrics improving
Paytm's merchant subscriber base for devices (soundbox) has reached 1.24 crore as of March end, an addition of 8 Lakh machines QoQ.
It has also reported a 9 percent QoQ growth in financial services revenue to Rs 545 crore. The company's lending operations-related revenue comes under the financial services segment.
Paytm has reported a net payment margin of Rs 578 crore, including the UPI incentive, while its gross merchandise value stood at Rs 5.1 lakh crore during the quarter. Its payment margin remained stable at 3 basis points, similar to the guidance.
The company has a cash balance of around Rs 13,000 crore at the end of FY 25.
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