Key Points

The weaker revenue performance comes despite an increase in other income, which rose by nearly Rs 100 crore to Rs 223.8 crore, as per the company’s stock exchange filing.

However, that wasn’t enough to offset broader pressures, and the company reported a net loss of Rs 544.6 crore for the quarter.

This is only slightly lower than the Rs 550.5 crore loss in the same period last fiscal, according to its stock exchange filings.

Paytm’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) before employee stock option (ESOP) expenses stood at Rs 81 crore. But ESOP costs remained high at Rs 169 crore. The company said it expects these expenses to come down going forward.

In a notable move last month, Paytm CEO Vijay Shekhar Sharma gave up 21 million ESOPs, triggering a one-time non-cash expense of Rs 492 crore.

Meanwhile, the company said revenue from UPI incentives had fallen this year -- reflecting reduced government payouts.

Paytm added that the payments industry is hopeful of regulatory clarity soon on allowing merchant discount rates (MDR) for large UPI transactions, which could help improve margins.

In the fourth quarter of FY25, Paytm generated Rs 1,098 crore in revenue from its Payment Services segment, which includes other operating income. With India’s vast MSME sector presenting major growth potential, the merchant base for mobile payments is estimated at over 10 crore, with nearly half expected to need software or hardware support.

The Financial Services segment remained a key growth driver, posting a 9 per cent quarter-on-quarter (QoQ) rise in revenue to Rs 545 crore.

During the quarter, Paytm disbursed Rs 4,315 crore in merchant loans, with more than half going to repeat customers -- indicating strong credit quality and customer loyalty.

Ahead of the earnings announcement, shares of Paytm’s parent fell 5.72 per cent on the National Stock Exchange (NSE).

- IANS