Paytm Achieves EBITDA Profitability Milestone in Q4 FY25

Paytm, a leader in payments and financial services, has announced its achievement of EBITDA profitability before ESOP costs for the fourth quarter of FY25. This milestone represents a key advance in Paytm's strategy towards sustained profitability, underscoring the effects of stringent cost-control and operational efficiency measures.

According to a company statement, Paytm recorded an EBITDA profit of Rs 81 crore in the January-March quarter, signaling its capacity to generate operating profits before stock-based expenses. This development marks significant progress for the fintech leader, highlighted by steady growth in its core business functions and a resurgence in user engagement as Paytm resumes UPI onboarding and hones its focus on payments and financial services. Additionally, Paytm's net losses have been significantly reduced. Excluding a unique Rs 522 crore ESOP charge, the company reported an improved Profit After Tax (PAT) figure of Rs (23) crore for Q4 FY25, reflecting a major quarter-on-quarter advancement as Paytm inches closer to achieving overall profitability.

This achievement aligns with the company's CEO, Vijay Shekhar Sharma's, voluntary forfeiture of 2.1 crore ESOPs, which has contributed to this one-off adjustment. Paytm asserted that the ESOP-related charge this quarter is a singular non-cash accounting adjustment and does not affect its fundamental business performance or cash reserves. A major driver for Paytm's path to profitability is its expanding financial services sector, with revenues growing 9% sequentially to Rs 545 crore, driven by increased merchant loan disbursements and improved collection efficiencies. Concurrently, Paytm's merchant ecosystem is expanding, with 8 lakh new merchants added to its payment devices network, bringing the total merchant subscriber base to 1.24 crore as of March 2025.

This steady growth in merchant adoption is solidifying Paytm's dominance in offline payments, a pivotal component of its revenue and growth strategy. With a robust cash reserve of Rs 12,809 crore at the close of March 2025, Paytm declares it retains substantial financial flexibility to invest in its core business areas and future innovations.

(With inputs from agencies.)