Paytm on Tuesday posted a resilient performance for the fourth quarter of FY25, reporting ₹1,911 crore in revenue—a 5% sequential growth—as it sharpened its focus on core operations in payments and financial services. The company achieved EBITDA before ESOP profitability during the quarter, with EBITDA before ESOP at ₹81 crore including the UPI incentive, and ₹11 crore excluding it.
This performance aligns with the company’s guidance and marks a major step in its journey toward sustainable profitability. Contribution profit stood at ₹1,071 crore, reflecting a 12% quarter-on-quarter rise, with the contribution margin of 56%. Excluding the UPI incentive, contribution profit was ₹1,001 crore, with a healthy 54% margin.
Paytm significantly reduced costs, with indirect expenses declining 1% QoQ and 16% YoY. Notably, non-sales employee costs dropped 36% year-on-year. Paytm’s PAT has improved by ₹185 Cr QoQ to ₹(23) Cr in Q4 FY25, excluding a one-time exceptional ESOP charge of ₹522 Cr.
A key highlight of the quarter was the voluntary relinquishment of 2.1 crore ESOPs by Founder and CEO Vijay Shekhar Sharma, a move that will cut ESOP-related expenses drastically going forward. From Q1 FY26, ESOP costs are expected to drop to ₹75–100 crore from ₹169 crore in Q4.
In its core payments business, net payment margin was ₹578 crore (including UPI incentive), or ₹508 crore excluding it—up 4% from the previous quarter. Payment processing margin remained stable at over 3 bps.
Paytm’s financial services segment continued to outperform, with revenue rising 9% QoQ to ₹545 crore. Merchant loan disbursals grew to ₹4,315 crore in Q4 from ₹3,831 crore in Q3, with over half of these loans going to repeat borrowers. To date, over 10 lakh merchants have availed loans through Paytm, underlining strong credit traction and retention.
Platform engagement remained strong, with Gross Merchandise Value (GMV) reaching ₹5.1 lakh crore and Monthly Transacting Users (MTUs) growing to 7.2 crore. The merchant subscriber base for Paytm’s payment devices expanded by 8 lakh, totaling 1.24 crore devices by March 2025.
The company ended the quarter with a solid cash balance of ₹12,809 crore—providing a cushion for innovation and expansion.
