Paytm shares jumped nearly 6 percent on May 7 after the fintech company reported a net loss of Rs 540 crore for the fourth quarter of the financial year 2025, marking a slight fall from the Rs 550 crore net loss reported in the year-ago period. The shares of the company were trading at Rs 863 apiece in early trading.
The company had released its results for the January-March quarter of FY25 in the post market hours of May 6. Notably, the fintech firm is now close to break even as its Rs 540-crore loss included a one-time cost of Rs 522 crore during the quarter under review. Without the exceptional cost, Paytm's net loss stood at Rs 18 crore.
The Noida-based company's one-time cost was in relation to the 21 million Employee Stock Options (ESOPs) which were granted to the Managing Director and CEO Vijay Shekhar Sharma.
The firm's revenue from operations however tumbled 16 percent year-over-year to Rs 1,912 crore. It also reported EBITDA positive with a surplus of Rs 81 crore during Q4.
"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.
Motilal Oswal reiterates 'Neutral' rating
After Paytm's Q4 results were released, Motilal Oswal reiterated its 'neutral' rating on the stock with a target price of Rs 870 apiece. "Paytm reported a year of recovery in business metrics during FY25. Disbursement recovery is well on track, led by healthy disbursements in merchant loans. GMV also demonstrated steady state recovery. Most business metrics continue to improve as recovery progresses. We expect a steady business recovery, leading to a 29% revenue CAGR over FY25-27," the domestic brokerage said. "We maintain our contribution profit estimates and project PAYTM to turn EBITDA positive by FY27," it added.
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