Paytm shares rally over 5% after Q4 loss narrows

Shares of One97 Communications, the parent company of payments aggregator Paytm, rose as much as 5.5% on Wednesday to Rs 860 on BSE after the company reported a narrower consolidated net loss for the quarter ended March 2025, despite exceptional items weighing on the bottom line.

On Tuesday, One97 Communications reported a consolidated net loss of Rs 540 crore in Q4FY25, compared with a loss of Rs 550 crore in the year-ago period. However, the net loss attributable to the owners of the parent widened sequentially from Rs 208 crore in Q3FY25.

The latest quarter’s results included exceptional items of Rs 522 crore—comprising Rs 492 crore in accelerated ESOP expenses and Rs 30 crore in other impairments. Excluding these, the company’s net loss stood at Rs 23 crore, bringing its profit after tax (PAT), excluding exceptional items, close to breakeven.

Revenue from operations for the March quarter came in at Rs 1,912 crore, down 16% year-on-year from Rs 2,267 crore. However, on a sequential basis, revenue rose nearly 5% from Rs 1,828 crore in Q3FY25.

Operating revenue stood at Rs 1,911 crore, up 5% quarter-on-quarter. Contribution profit rose 12% QoQ to Rs 1,071 crore, with the contribution margin stable at 56%. EBITDA before ESOP expenses improved to Rs 81 crore, up by Rs 121 crore from the previous quarter.

UPI incentive, margins and outlook

The company received a UPI acquiring incentive of Rs 70 crore during the quarter. Net payment margin, including this incentive, stood at Rs 578 crore. Excluding the incentive, the margin was Rs 508 crore, up 4% sequentially. Payment processing costs declined 9% QoQ, resulting in savings of Rs 50 crore.

In its earnings statement, Paytm noted that revenue excluding the UPI incentive grew just 1% QoQ, citing a high base effect from festive season volumes in Q3. “UPI incentive revenue was lower this year due to reduced government payouts,” the company said.

Paytm added that it anticipates potential policy clarity around merchant discount rates (MDR) on UPI for large merchants, which could offer incremental monetisation opportunities. The company reiterated its focus on merchant payments, consumer acquisition, international business, and financial services to drive sustainable growth and profitability.

Shares of One97 Communications closed 5.9% lower on Tuesday at Rs 815.30 on the BSE. The earnings were announced after market hours.

Also read | Paytm Q4 Results: Cons loss narrows to Rs 540 crore, revenue falls 16%

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