Shares of One97 Communications Ltd, the parent company of Paytm, rose 3.33% to ₹841.95 in early trade on May 7, rebounding after a nearly 6% drop in the previous session. The bounce comes despite the company posting a consolidated net loss of ₹540 crore for the March quarter (Q4 FY25), which included a one-time exceptional cost of ₹522 crore due to ESOP grants to CEO Vijay Shekhar Sharma and a provision for a potential SEBI settlement.
Excluding this exceptional item, Paytm’s net loss narrowed to ₹18 crore, and it reported a positive EBITDA of ₹81 crore during the quarter.
Revenue from operations fell 16% year-on-year to ₹1,912 crore, primarily impacted by RBI restrictions on Paytm Payments Bank in January 2024. However, the company recorded a 5% QoQ growth, driven by strong performance in financial services and UPI incentives.
For FY25, Paytm’s net loss reduced sharply to ₹663 crore, down from ₹1,422 crore in FY24, even though annual revenue declined 28% to ₹7,625 crore due to regulatory headwinds.
Key Business Updates:
- Merchant device base (Soundbox): 1.24 crore, up 8 lakh QoQ
- Financial services revenue: ₹545 crore, up 9% QoQ
- Net payment margin: ₹578 crore
- Gross merchandise value: ₹5.1 lakh crore in Q4
- Cash balance: ~₹13,000 crore as of March 2025
Paytm’s stock recovery on May 7 suggests investor confidence in its operational resilience and strong liquidity position, even as the company navigates regulatory hurdles and works to restore its payments bank services.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always consult with a financial advisor before making investment decisions.
