Paytm’s parent One97 Communications Ltd is expected to earn from the ongoing quarter after fintech recorded losses in the quarter ended in March.
The company reports net loss ₹According to its exchange documents, the 5.398 million yuan in the fourth quarter of fiscal 25 was a shrinkage of more than a year ago. Q4 losses are driven by one-time special charges ₹Due to employee stock option acceleration (ESOP) fees and ₹3 million involves other damages. In addition to special projects, net losses are ₹230 million are under review in the quarter.
“This fee is one-time and is excellent in nature. If you're going to see all the other expenses, we're on the verge of PAT profitability,” Shekhar said on the May 6 earnings call. “I'm pretty sure that starting in the next quarter (Q1) and if everything goes well, everything we're seeing is likely to be a profitable quarter.”
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Paytm earns most of its revenue from payments, finance and marketing services. Paytm's consolidated revenue fell by 16% from fourth quarter operations (YOY) to ₹19.115 million ₹22671 million. Its income rose in turn.
RBI Action HIT Business
In early 2024, the Reserve Bank of India (RBI) banned Paytm colleague Paytm Payments Bank's compliance issues with new clients, which affected the company's operations in the subsequent quarter. In October last year, National Payments Corporation allowed Paytm to join its UPI application through a partnership with banks in order to expand its consumer UPI business.
The company said further profits from its UPI service are expected to allow “quickly” merchant discount rate (MDR), which is optimistic about gradual income. The report shows that the government is considering MDRs for digital payments to large merchants.
MDR is the fee that banks charge from merchants when processing digital payments. For UPI payments, this fee is 30 basis points of transaction value Before the government abandons it in 2020.
Paytm's financial services revenue increased by 9% in the quarter in succession ₹5.45 million. The company said that while Paytm continues to see growth in merchant loans, the overall number of financial services customers fell in the quarter.
This is the back of a slow personal loan credit cycle. According to a company statement, the value of personal loans issued by Paytm in the fourth quarter fell to ₹142.2 billion ₹One quarter of the morning is 17.46 million. The company attributes it to “its loan partners continue to use enhanced risk policies, which is in line with industry trends.”
It said that due to the “capital market regulation adjustment”, equity brokerage Paytm Money also contributed to loss of customer numbers.
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“If the credit cycle is lowered, this will have a positive impact on personal loans. Or if we see the credit line in India continues to grow. There has been some regulatory development in the industry over the past three to four months, thus reducing the credit line,” Madhur Deora said. “In Paytm Money, we think we have a lot of opportunities to earn more advertising.”
In the fourth quarter, merchant loan issuance rose to ₹From 43.15 million ₹The third quarter was 38.31 million, based on the contribution of the default loss guarantee (DLG) model.
Meanwhile, Paytm said it is expanding its global footprint with new subsidiaries in the UAE, Saudi Arabia and Singapore. “Internationalization will mean working with local players rather than launching consumer Paytm apps in new markets. This will require less investment to expand services in new markets,” Sharma said.
The company also expects AI to double its efforts to increase additional hiring to increase revenue. “There is no sharp drop in staff, but we are unlikely to recruit for replacement exports,” Sharma said.
