Paytm Q4 results: Net loss narrows to ₹540 crore, revenue declines 16%

One97 Communications, parent of payment services provider Paytm, on Tuesday, May 6, reported that its net loss narrowed to ₹540 crore in the January-March quarter from a loss of ₹550 crore in the same period last year. Its revenue from operations declined 16% in the fourth quarter of the financial year 2024-25 to ₹1,911 crore as against ₹2,267 crore registered in the year-ago period.

“In Q4 FY 2025, we achieved operating revenue of ₹1,911 crore, with an increase in revenues from distribution of financial services and ₹70 crore of UPI incentive for FY 2025. Excluding the UPI incentive, revenue increased 1% QoQ, despite the festive season surge in payments volume in the previous quarter. Our net payment margin, including UPI incentive, was at ₹578 crore,” the company said in a press release.

“Excluding UPI incentive, net payment margin was ₹508 crore (up 4% QoQ). Due to the seasonality benefit in Q3 mentioned above, Payments Services revenue (excluding UPI incentive) was down 3% QoQ, whereas payment processing cost was lower 9% QoQ (reduction of ₹50 crore QoQ),” Paytm added.

Paytm reduced its indirect costs by 1% quarter-on-quarter (QoQ) to ₹991 crore, marking a 16% year-on-year (YoY) decline. This was largely due to a 36% YoY reduction in non-sales employee costs. The company’s EBITDA before ESOP (including UPI incentive) stood at ₹81 crore, while excluding UPI incentives, it improved by ₹51 crore QoQ to ₹11 crore, reflecting better operational efficiency, the Noida-based company said.

Despite business disruptions in the first half of FY 2025, Paytm’s platform demonstrated strong consumer and merchant stickiness. The company expanded its device merchant network to 1.24 crore as of March 2025, adding 8 lakh merchants in Q4 alone, driven by innovative offerings and an extensive field force, Paytm added.

With the resumption of onboarding new UPI users, Paytm expects accelerated growth in Monthly Transacting Users (MTUs). The company plans to introduce new products and invest strategically in marketing to capitalise on this opportunity.

Paytm’s financial services revenue rose 9% QoQ to ₹545 crore in Q4 FY 2025. While the number of financial services customers remained stable at 5.5 lakh (availing loans, equity broking, and insurance), the company attributed this to a temporary slowdown in Paytm Money due to regulatory changes and a shift in the personal loan credit cycle.

Paytm’s Gross Merchandise Value (GMV) stood at ₹5.1 lakh crore, with a net payment margin of ₹578 crore (including UPI incentives). Excluding UPI incentives, the payment processing margin remained above 3 basis points (bps), in line with company guidance.

Paytm shares ended 5.90% lower at ₹815 ahead of its earnings announcement.