New Delhi, 6 May (IANS). Payments and Financial Services Company Paytm on Tuesday reported a strong performance for the FY 2025 March quarter, reflecting the continuous growth in the company’s core business segment.
The company acquired revenue of Rs 1,911 crore, which shows 5 percent gradual increase. Also achieved an important milestone with EBITDA worth Rs 81 crore before ESOP profitability.
The company also recorded a improvement in profitability, in which the company reduced its profit after tax (PAT) deficit to only Rs 23 crore, which is an improvement of Rs 185 crore from the last quarter.
This does not include a one-time ESOP charge of Rs 522 crore.
Founder and CEO Vijay Shekhar Sharma has voluntarily surrendered the ESOP of Rs 2.1 crore, resulting in a non-caring accounting charge, but this is expected to reduce the ESOP cost from the first quarter of FY 2026.
The company said in the earning release statement that the ESOP cost will be much lower from the first quarter of FY 2026. The ESOP cost in the first quarter of FY 2026 is estimated to be between Rs 75-100 crore, while it is Rs 169 crore in the fourth quarter of FY 2025.
This demonstration indicates focusing on the operational efficiency and disciplined cost management of Paytm.
The company’s contribution increased to Rs 1,071 crore to Rs 1,071 crore, which is 12 percent higher on a quarterly basis, while the contribution margin has improved by 56 percent. The company concluded at the end of the quarter with a strong cash balance of Rs 12,809 crore.
In the fourth quarter of FY 2025, Paytm filed a payment of Rs 1,098 crore in service revenue (including other operational revenue).
Due to the important opportunities available in India’s MSME sector, the potential merchant base for mobile payment is estimated to be more than 10 crores, about half of which may require software or hardware solutions.
The financial services segment for the company remained the development engine, with the revenue 9 percent to Rs 545 crore on a quarterly basis.
Paytm distributed merchant loans worth Rs 4,315 crore in the fourth quarter of FY 2025, with more than half of loans to repeated borrowers, which shows strong credit quality.
The average monthly transaction user (MTU) increased to 7.2 crore, while the merchant base for Paytm’s payment equipment increased to 8 lakhs, reaching 1.24 crore by the end of March 2025.
The company also continued to promote operational efficiency, causing 1 percent declined by 1 percent to Rs 991 crore in the fourth quarter of FY 2025 on the quarter basis.
Paytm closed the quarter with a strong cash balance of Rs 12,809 crore, making it in good position to invest in future development opportunities.
-IANS
SKT/ABM