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Shares of Paytm rose nearly 6% to Rs 863 on May 7, after the fintech giant reported a narrowed net loss of Rs 540 crore for Q4 FY25. The company is inching closer to break-even, with its reported loss primarily driven by a one-time exceptional cost of Rs 522 crore.
Excluding this one-off expense—related to the grant of 21 million ESOPs to MD and CEO Vijay Shekhar Sharma—Paytm’s adjusted net loss stood at just Rs 18 crore for the quarter.
Despite a 16% year-over-year drop in revenue from operations to Rs 1,912 crore, Paytm posted a positive EBITDA of Rs 81 crore. Revenue gains from financial services distribution and a Rs 70 crore UPI incentive helped offset pressure from lower payment volumes following the festive season.
In a regulatory filing, the Noida-based company noted that, excluding the UPI incentive, revenue was up 1% quarter-on-quarter, signaling stabilization after a period of volatility.
Domestic brokerage Motilal Oswal reiterated its ‘Neutral’ stance on the stock, setting a target price of Rs 870. The firm acknowledged a recovery in Paytm’s disbursement metrics and projected a 29% revenue CAGR between FY25 and FY27. It also expects Paytm to remain EBITDA positive through this period.
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