Paytm (One 97 Communications Ltd.) released its financial results for the fourth quarter of FY25 on Tuesday, May 6, 2025.
In Paytm Q4 results, the company posted a consolidated net loss of ₹544.6 crore. Its loss reduced 1.1% year-on-year (YoY) from ₹550.5 crore loss reported in the same quarter of the previous fiscal year. The figure is below the analysts’ expectation of a ₹72.5 crore loss.
For the final quarter of FY25, Paytm Ltd recorded a YoY decline of 11% in its total income, reaching ₹2,135.3 crore. This figure is up from ₹2,398.8 crore in the corresponding quarter last year.
Furthermore, Paytm (One 97 Communications Ltd.) reported an EBITDA before ESOP cost of ₹81 crore for Q4 FY25, reflecting an improvement of ₹121 crore compared to the previous quarter.
Additionally, the EBITDA (post-ESOP) stood at -₹88 crore in Paytm latest results, marking a QoQ improvement of ₹135 crore, highlighting significant progress in operational performance.
Paytm (One 97 Communications Ltd.) Q4 Results Highlights
In this table, you will get an overview of Paytm latest quarterly results:
| Q4 FY2024-25 | Q3 FY2024-25 | Q4 FY2023-24 | YoY Growth (%) | QoQ Growth (%) | |
| Total Income (₹ in crore) | ₹2,135.3 | ₹2,016.5 | ₹2,398.8 | -11% | 5.9% |
| Net profit (₹ in crore) | -₹544.6 | -₹208.5 | -₹550.5 | 1.1% | -161.2% |
| EPS (Diluted) | -₹8.47 | -₹3.27 | -₹8.65 | 2.1% | -159% |
Paytm (One 97 Communications Limited) Financial Results Comparison with the Previous Year
Here is a table of annual data comparison of Paytm Q4 2025 results:
| FY 2024-25 | FY 2023-24 | |
| Total Income (in crore) | ₹7,625 | ₹10,524.7 |
| Net profit (in crore) | -₹663.2 | -₹1,422.4 |
| EPS | -₹10.4 | -₹22.3 |
Updates Shared by Paytm in Latest Financial Results
During the announcements of Paytm Q4 results, the company’s management provided key updates about the board meeting in their investor presentation:
Financial Highlights
These are the financial highlights shared in the Paytm quarterly results:
- Reported a cash balance of ₹12,809 crore as of the quarter end.
- Contribution profit stood at ₹1,071 crore, reflecting a 12% QoQ increase, with a contribution margin of 56%.
- PAT (Loss) reduced to ₹23 crore, showing a significant QoQ improvement of ₹185 crore.
- The company recognised ₹70 crore in UPI acquiring incentives during the quarter.
- Operating revenue rose to ₹1,911 crore, reflecting a 5% increase QoQ.
Business Highlights
Here are some of the key business highlights released in the Paytm Q4 results:
- Merchant subscriber base for devices reached 1.24 crore as of March 2025, adding 8 lakh QoQ.
- Financial services revenue increased to ₹545 crore, reflecting a 9% QoQ growth.
- Net payment margin stood at ₹578 crore, including the UPI incentive, with GMV of ₹5.1 lakh crore.
- Payment processing margin, excluding the UPI incentive, continues to stay above 3 bps, in line with the Company’s guidance.
ESOPs Granted to MD & CEO
During the financial year ended March 31, 2022, the Company granted 21 million Employee Stock Options (ESOPs) to its Managing Director and CEO. The vesting of these options is contingent upon the achievement of predefined performance milestones over a specified period.
The Company has been recognising the associated ESOP expenses following the relevant provisions of Ind AS 102 – Share-based Payments.
SEBI Show Cause Notice and Settlement Application
As per Paytm Q4 results, the Company received a Show Cause Notice (SCN) from SEBI, questioning the compliance of the previously granted ESOPs with SEBI SBEB Regulations in FY 2023-24.
In response, the company filed a settlement application under the applicable SEBI settlement regulations, which remained under discussion with SEBI as of March 31, 2025.
Voluntary Surrender and Cancellation of ESOPs by MD & CEO
On April 16, 2025, the MD & CEO voluntarily relinquished the granted ESOPs, a decision acknowledged by the Nomination and Remuneration Committee (NRC).
As a result, the NRC treated the ESOPs as cancelled, and the company has accounted for this cancellation in line with Ind AS 102 – Share-Based Payments.
The forfeited options have been returned to the ESOP pool under the One 97 Employees Stock Option Scheme, 2019.
ESOP Cancellation Impact
Following the cancellation of the ESOPs, the Company recorded an accelerated charge of ₹492.4 crore as an exceptional item in the Statement of Profit and Loss.
Additionally, the cumulative ESOP cost of ₹4,092.1 crore, previously charged over the years, was transferred from the ESOP Reserve to Retained Earnings.
Sale of Movie and Events Ticketing Business
According to Q4 Paytm results, on August 27, 2024, the company completed the sale of its movie and events ticketing businesses to Zomato Limited for a final consideration of ₹2,013.6 crore, resulting in a net gain of ₹1,345.4 crore, disclosed as an exceptional item.
As these businesses were non-core with minimal financial impact, they were not classified as discontinued operations under Ind AS 105.
Impairment Charges Recognised in FY 2024-25
In the Paytm Q4 results, the company recorded goodwill impairments of ₹6.8 crore for Mobiquest Mobile Technologies Pvt. Ltd. and ₹3.3 crore for Urja Money Pvt. Ltd., along with an impairment provision of ₹19.6 crore for optionally convertible debentures issued by Admirable Software Ltd.
FEMA Show Cause Notice and Provision for Compounding
According to Q4 Paytm results 2025, the Company and its subsidiaries received a Show Cause Notice from the Directorate of Enforcement alleging FEMA violations related to past investments and equity raised, totalling ₹611.1 crore.
Some of these claimed violations are from times before the companies became subsidiaries. Based on legal advice, the company is taking steps toward resolution and has provisioned for estimated compounding fees, while the final impact remains uncertain.
Looking to get more informative and detailed updates regarding financial results, geopolitical developments, and market insights? Follow Torus Digital now!
