Paytm parent One 97 Communications Limited reported a net loss of ₹539.8 crore for Q4 FY25, which at first glance appears significantly wider than the ₹208.3 crore loss in the previous quarter. However, a closer look reveals that this headline figure is heavily influenced by exceptional, one-time charges—most notably an accelerated ESOP expense of ₹492 crore recorded during the quarter.
Excluding these exceptional items and UPI incentives, the company’s performance reflects a much healthier trend. On a comparable basis, Paytm’s profit after tax (PAT) improved by ₹115 crore quarter-on-quarter, narrowing the adjusted loss to ₹93 crore in Q4 FY25 from ₹208 crore in Q3 FY25.
The company stated that EBITDA before ESOP and including UPI incentives stood at ₹81 crore in Q4 FY25, while excluding UPI incentives, it was ₹88 crore—showing a ₹65 crore sequential improvement. Paytm attributed this positive movement to stronger operating leverage, lower depreciation and amortisation expenses due to reduced capex, and increased other income from higher cash reserves.
The ₹492 crore exceptional charge stems from the CEO’s voluntary decision to forgo ESOPs, which has been accounted for in compliance with Ind-AS 102. As a result, Paytm recorded this as a non-cash expense and also transferred ₹4,092 crore from its ESOP reserve back into retained earnings, boosting its free reserves.
The company also incurred an additional ₹30 crore impairment on investments in certain associates or subsidiaries, taking the total exceptional items to ₹522 crore for the quarter.
Despite the headline net loss figure, Paytm’s internal financial bridge shows continued improvement in core profitability, setting a stronger base for FY26, especially with ESOP-related expenses expected to reduce significantly in upcoming quarters.
