Paytm has shared its financial performance for the final quarter of FY25, recording earnings before ESOP-related expenses of ₹81 crore — a key milestone that underscores the company’s strides toward profitability.

The fintech major posted a 5% increase in revenue over the previous quarter, reaching ₹1,911 crore, reflecting stable momentum in its principal business segments. The improved performance was driven by better cost efficiency and operational control. While the company remained in the red, its net loss narrowed to ₹23 crore, excluding a one-time employee stock option (ESOP) expense of ₹522 crore.

For the full financial year, Paytm reported a revenue of ₹6,900 crore — a 31% year-on-year decline. The fall was largely attributed to operational setbacks faced during the first half of the year. However, the company noted sustained engagement among users and merchants, with the rollout of new payment devices and the recent nod to onboard fresh UPI users expected to provide new growth avenues.

Paytm added 8 lakh new merchant subscribers for its payment hardware in the March quarter alone, bringing the total to 1.24 crore by the end of FY25. This expansion strengthens its digital payments network and positions it to scale its broader suite of financial services.

The company’s financial services arm saw a 9% sequential rise in revenue, clocking ₹545 crore in Q4. Loan disbursements to merchants hit ₹4,315 crore for the quarter, with more than half going to repeat customers — signaling strong retention and credit reliability.

Operating efficiency also improved. Indirect expenses came down by 1% compared to Q3 and by 16% year-on-year, aided by a 36% drop in non-sales employee costs. ESOP-related expenses are also projected to ease considerably, falling to a range of ₹75–100 crore starting Q1 FY26, down from ₹169 crore in Q4.

With a cash reserve of ₹12,809 crore, Paytm maintains a strong liquidity position that enables it to continue investing in growth and product innovation.