Paytm Reports ₹544.6 Crore Loss in Q4 Result

7 May 2025 , 11:10 AM

Parent company of online payments leader Paytm, One97 Communications Ltd., announced its March quarter results on May 6, post-market hours. The firm reported a consolidated net loss of ₹544.6 crore in Q4 FY24, which is marginally better than a net loss of ₹550.5 crore in the previous corresponding quarter.

In spite of the net loss, Paytm witnessed a sharp spike in other income, which reached ₹223.8 crore, almost ₹100 crore higher than the ₹131.7 crore reported last year. Operational revenue declined 15.7% YoY at ₹1,912 crore. Paytm posted an EBITDA excluding ESOP expense of ₹81 crore, up ₹135 crore from the December quarter.

Employee Stock Ownership Plan (ESOP) cost in the March quarter was ₹169 crore. The management has stated that this cost is expected to decrease in future quarters.

One of the key events last month, CEO Vijay Shekhar Sharma voluntarily relinquished 21 million ESOPs, and a non-cash expense of ₹492 crore was borne by the company in the quarter.

Paytm has also reported lower UPI incentive revenue, pinning lower provision of incentives by the government as the main factor. The company was optimistic of future monetization, further adding that the space looks forward to the introduction of MDR on UPI transactions for the larger merchants.

“Once there’s clarity around MDR for UPI, we will revise payment processing margin guidance,” the management stated in their earnings report. While the quarter experiences some near-term pressures, Paytm remains focused on cost effectiveness, regulatory clarity, and new monetization opportunities in digital payments.