Paytm Shares Surge 6% After Q4 Net Loss Narrows to ₹540 Crore

Market Performance

Paytm shares witnessed a sharp 6% surge on May 7, following the announcement of its Q4 FY25 results. The stock was trading at ₹863 apiece during early market hours, reflecting investor optimism despite a reported net loss.

The surge comes a day after the company released its financial results post-market hours on May 6, offering a mixed bag of performance indicators.

Main News

The fintech giant reported a net loss of ₹540 crore for Q4 FY25, slightly narrowing from the ₹550 crore loss in the same quarter last year. Despite the red ink, the company is inching closer to breaking even.

A significant contributor to the quarterly loss was a one-time cost of ₹522 crore, mainly due to 21 million Employee Stock Options (ESOPs) granted to MD and CEO Vijay Shekhar Sharma. Without this one-time expense, the net loss would have stood at a much smaller ₹18 crore.

Company Financials Overview

Revenue

• Q4 FY25 Operating Revenue: ₹1,912 crore
• This marks a 16% year-over-year decline
• Revenue saw 1% quarter-on-quarter growth (excluding ₹70 crore UPI incentive)

EBITDA

• The company reported a positive EBITDA of ₹81 crore
• This signifies a notable shift toward operational profitability

Net Loss

• Reported Net Loss: ₹540 crore
• Adjusted Net Loss (excluding one-time cost): ₹18 crore

Company Details

Paytm, headquartered in Noida, continues to navigate its transition phase. Despite revenue pressures, the company is witnessing gradual improvements across business metrics.

Its financial services distribution showed resilience, with consistent revenue contributions. Meanwhile, incentives like the ₹70 crore UPI support, although non-recurring, added to topline growth.

Summary

Paytm shares surge 6% as investor sentiment improved following the company’s Q4 FY25 results. While a headline net loss of ₹540 crore may seem steep, adjusted numbers point toward a potential turnaround.

With a positive EBITDA and trimmed operational losses (excluding ESOP costs), the company is on the path toward stabilization. This performance could be a stepping stone for sustained market confidence in the upcoming quarters.