We have announced our financial results for Q4FY25 with a continued focus on payments and distribution of financial services for sustained, profitable growth. The company has reported EBITDA before ESOP profitability in line with its guidance. We continue to focus on payments and distribution of financial services for sustainable, profitable growth.
The company reported revenue growth of 5% quarter-on-quarter, reaching ₹1,911 Cr in Q4FY25, including UPI incentives of ₹70 crore. EBITDA Before ESOP, including UPI incentive was at ₹81 Cr. Excluding UPI incentive, EBITDA Before ESOP has improved by ₹51 Cr QoQ to ₹11 Cr.
Contribution profit, including UPI incentive, was at ₹1,071 Cr (56% margin). Excluding UPI incentive, contribution profit was up 4% QoQ at ₹1,001 Cr with contribution margin of 54%, aided by higher share of Financial Services revenue. The company further reduced indirect cost by 1% QoQ to ₹991 Cr, and 16% YoY, driven by various factors including reduction in non-sales employee costs by 36% YoY.
You can read the Q4FY25 results here:
“Our PAT has improved by ₹185 Cr QoQ to ₹(23) Cr in Q4 FY25, excluding a one-time exceptional ESOP charge of ₹522 Cr. The company’s Founder and CEO, Vijay Shekhar Sharma, voluntarily forgone all 2.1 Cr ESOPs granted to him. Starting from Q1 FY26, ESOP cost will be substantially lower with Q1 FY26 ESOP cost to be in the range of ₹ 75-100 Cr as against ₹169 Cr in Q4 FY25,” said the company.
Net payment margin stood at ₹578 Cr, including UPI incentive. Excluding this, net payment margin was ₹508 Cr, marking a 4% QoQ increase. Payment processing margin (excluding UPI incentive) remained steady at over 3 bps, in line with company guidance. However, payment revenue (excluding UPI incentive) declined 3% QoQ, due to seasonal trends in the previous quarter owing to the festive season.
Financial services remained a key growth driver, with revenue rising to ₹545 Cr, up 9% sequentially, on account of higher share of merchant loans, higher trail revenue from Default Loss Guarantee (DLG) portfolio, and better collection efficiencies. During Q4 FY 2025, Merchant Loans distribution continues to see strong growth with a distribution of ₹4,315 Cr during the quarter, versus ₹3,831 Cr in Q3 FY 2025. More than 50% of loans distributed were to repeat borrowers. There are 10 Lakh merchants who have taken loans till date, creating a strong base for repeat loans.
Our Gross Merchandise Value (GMV) for the quarter stood at ₹5.1 Lakh Cr. In Q4 FY25, Average Monthly Transacting Users (MTUs) increased to 7.2 Cr as compared to 7.0 Cr in the previous quarter. The merchant subscriber base for Paytm’s payment devices expanded by 8 Lakh during the quarter, reaching a total of 1.24 Cr. The company has further reduced its indirect costs by 1% QoQ to ₹991 Cr and 16% YoY, driven by various factors including reduction in non-sales employee costs by 36% YoY. Its platform continues to see consistent engagement from both consumers and merchants, supported by steady expansion in its device network and recent approval to onboard new UPI users—opening fresh avenues for growth.
“With India’s MSME sector growing rapidly, we see a big opportunity in mobile payments and financial services distribution. The company, a leading merchant acquirer, aims to capitalize on this by launching innovative payment solutions tailored for diverse merchant needs and expanding its network in tier-2 and tier-3 cities. The company closed the quarter with a robust cash balance of ₹12,809 Cr,” said the company.
The company remained at the forefront with the launch of innovative new devices such as India’s first Solar Soundbox and the Mahakumbh Soundbox. Paytm Solar Soundbox is India’s first solar-powered soundbox for merchants, designed to provide uninterrupted payment alerts using solar energy, especially beneficial for small businesses in areas with limited electricity. The Paytm Mahakumbh Soundbox is an upgraded 4G-enabled Soundbox with a built-in digital screen for instant visual payment alerts alongside traditional audio confirmations, enhancing transaction tracking and privacy for merchants.
We remain grateful for your continuous support and remain committed to our mission to building a profitable company and creating shareholder value while driving digitisation and inclusive financial access
