Paytm’s parent reported a net loss of ₹544.6 crore, compared to a net loss of ₹550.5 crore during the same quarter last year.
The company reported a net loss despite its other income increasing by nearly ₹100 crore from last year to ₹223.8 crore. Paytm had reported an other income figure of ₹131.7 crore in the base quarter.
Paytm’s net loss is contrary to expectations of brokerages like JM Financial and Yes Securities, who had expected a net profit of ₹3.6 crore and ₹4.5 crore respectively for the quarter. The loss is also higher than the Motilal Oswal estimate of ₹112 crore.
Revenue for the quarter declined by 15.7% from the same quarter last year to ₹1,912 crore. JM Financial had expected the revenue figure to be ₹1,975 crore, while Motilal Oswal had projected the figure to be at ₹2,098 crore.
Paytm reported an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) before Employee Stock Options (ESOP) of ₹81 crore, which is an improvement of ₹135 crore from the December quarter, according to its earnings release.
ESOP costs during the March quarter stood at ₹169 crore and the management expects that number to reduce significantly.
Last month, Paytm CEO Vijay Shekhar Sharma had forgone 21 million ESOPs amid scrutiny from market regulator SEBI, leading to a non-cash expense of ₹492 crore.
Paytm said in its earnings release that the UPI incentive revenue was lower this year due to lower incentives from the government. “The industry expects MDR on UPI for large merchants to be allowed in the near future, which will result in incremental monetisation opportunities. We will update our payment processing margin guidance once we have clarity on MDR on UPI,” Paytm’s statement said.
Shares of One97 Communications ended 5.7% lower ahead of the earnings announcements. The stock is still down 62% from its IPO price of ₹2,150, having declined 17% so far in 2025.
First Published: May 6, 2025 10:50 AM IST
