Paytm Close To Delivering Profits, Biz Shows Resilience In Q4 As Revenue Grows To ₹1,911 Cr

Paytm delivered a resilient Q4 FY25 with 5% revenue growth to ₹1,911 Cr and achieved EBITDA before ESOP profitability, driven by strong performance in financial services and core payments.

Mobile payments pioneer Paytm has posted a resilient performance for the January-March quarter of FY25, showing steady growth across its core businesses. The fintech major reported a 5% quarter-on-quarter increase in revenue, reaching ₹1,911 crore in Q4 FY25, demonstrating a steady recovery in its core business segments.

It also achieved ₹81 crore in EBITDA before ESOP costs, including UPI incentive, signalling strong operational control and a clear path toward sustainable, profitable growth. Excluding UPI incentive, EBITDA before ESOP improved by ₹51 crore QoQ to ₹11 crore. Also, excluding the one-time exceptional expenses of ₹522 crore, Paytm’s profit after tax (PAT) improved to ₹(23) crore.

Paytm’s contribution profit rose to ₹1,071 crore, a 12% quarter-on-quarter jump, with the contribution margin improving to 56%. The company closed the quarter with a robust cash balance of ₹12,809 crore, providing ample strength for future investments and growth initiatives.

In the payments business, Paytm’s net payment margin stood at ₹578 crore, which included ₹70 crore from the UPI incentive for the year. Excluding the incentive, the margin was ₹508 crore, a 4% increase from the previous quarter.

Financial services continued to be a major growth driver for Paytm. Revenue from this segment rose to ₹545 crore in Q4 FY25, up 9% sequentially. Merchant loan disbursements during the quarter reached ₹4,315 crore, with more than half going to repeat borrowers, a sign of strong credit performance and user stickiness.

User and merchant activity remained strong. Paytm’s Gross Merchandise Value (GMV) for the quarter touched ₹5.1 lakh crore, and its Average Monthly Transacting Users (MTUs) increased to 7.2 crore. The merchant subscriber base for Paytm’s payment devices grew by 8 lakh in the quarter, reaching 1.24 crore by March 2025.

The company also showcased remarkable consumer and merchant stickiness, despite the business disruptions in the first half of FY 2025. On a full-year basis, Paytm recorded ₹6,900 crore in operating revenue for FY25, a decline from ₹9,978 crore in FY24, however, it reflects resilience following business disruptions earlier in the year.

Paytm is focusing on India’s large MSME sector, seeing it as a key growth opportunity for mobile payments and financial services. The company plans to roll out innovative payment solutions designed to meet the unique needs of small and mid-sized businesses, while also strengthening its presence in tier-2 and tier-3 cities across the country.