Paytm's Financial Performance in Q4

One97 Communications, the parent company of Paytm, has reported a consolidated loss of Rs 545 crore for the quarter ending March 31, 2025. This marks a significant improvement from previous quarters, attributed to reduced payment processing charges and employee benefit expenses.

Excluding Exceptional Items

The results include a notional, non-cash loss of Rs 522 crore, primarily due to ESOP expenses and impairments. Excluding these, the quarterly loss would have been Rs 23 crore, showcasing a Rs 185 crore improvement quarter-over-quarter.

Operational Highlights

Operational profit, excluding ESOP costs, rose to Rs 81 crore. Employee expenses saw a sharp decline to Rs 748.3 crore from Rs 1,104.4 crore the previous year, thanks to AI-driven efficiencies.

Revenue and Future Outlook

Revenue fell to Rs 1,911.5 crore from Rs 2,267.1 crore in Q4 FY24. Despite the challenges, Paytm's annual loss narrowed significantly, and the company is focusing on financial services and merchant lending for growth.