Paytm Share Price Rises 5.48% on May 7 Amid 5% Revenue Growth in Q4 FY25

One 97 Communications Limited, the parent company of Paytm, has announced its financial results for the quarter and financial year ended March 31, 2025.  

Post the announcement, on May 7, 2025, Paytm share price opened at ₹808.00, down from its previous close of ₹814.85. At 9:31 AM, the share price of Paytm was trading at ₹859.50, up by 5.48% on the NSE. 

Q4 FY 2025 Financial Performance 

One 97 Communications reported a 5% quarter-on-quarter (QoQ) growth in operating revenue, reaching ₹1,911 crore. The company stated that this growth was driven by a contribution profit of ₹1,071 crore, up 12% QoQ, with a contribution margin of 56%. 

The company also experienced a marked improvement in its EBITDA (before ESOP), which stood at ₹81 crore, an improvement of ₹121 crore from the previous quarter. 

Despite a negative EBITDA of ₹(88) crore, there was a substantial improvement of ₹135 crore QoQ. The profit after tax (PAT) also showed a notable improvement, reaching ₹(23) crore, an improvement of ₹185 crore compared to the previous quarter. 

Business Highlights 

The company’s net payment margin, including the UPI incentive, stood at ₹578 crore, with a GMV of ₹5.1 lakh crore. The merchant subscriber base for devices grew to 1.24 crore, marking an addition of 8 lakh subscribers QoQ. 

Financial services revenue also saw an increase of 9% QoQ, reaching ₹545 crore. The company’s contribution profit, excluding the UPI incentive, rose 4% QoQ to ₹1,001 crore, maintaining a contribution margin of 54%. Furthermore, the company managed to reduce its indirect costs by 1% QoQ and 16% YoY, largely due to a reduction in non-sales employee costs by 36% YoY. 

Impact of UPI Incentives and Industry Outlook 

The UPI incentive for the company was ₹70 crore in Q4 FY 2025. However, the UPI incentive revenue was lower than in the previous year due to decreased incentives from the Government. The company expects the introduction of MDR on UPI for large merchants to boost future monetisation opportunities. 

Also Read: SBI or HDFC Bank: Where’s the Bigger Payout for Investors? 

Conclusion 

One 97 Communications showed financial progress in Q4 FY 2025 with growth in operating revenue, contribution profit, and financial services. The industry’s expectation of MDR on UPI presents further opportunities for monetisation, which could improve future margins. 

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