New Delhi, India With a solid Q4 FY25 performance, Paytm, a distribution company for payments and financial services, achieved a significant milestone by turning a profit at the EBITDA level before ESOP.

This is a significant advancement in the fintech major’s journey toward long-term profitability and shows the results of its continuous efforts to reduce costs and improve operational effectiveness.

According to the corporate statement, Paytm produced an EBITDA before ESOP profit of Rs 81 crore during the Jan-Mar quarter, proving that it could make operational profits before deducting stock-based charges. As it continues UPI onboarding and concentrates on payments and financial services, the fintech giant has made significant strides in its main business and seen early indications of user growth, marking a significant milestone.

Paytm’s net losses have also significantly decreased. In Q4 FY25, the company’s Profit After Tax (PAT) increased to merely Rs 23 crore, excluding a one-time non-cash extraordinary ESOP charge of Rs 522 crore. This indicates that Paytm is getting closer to total profitability and is a notable improvement from quarter to quarter.

The one-time adjustment is a result of Vijay Shekhar Sharma, the company’s founder and CEO, voluntarily choosing to relinquish all 2.1 crore ESOPs that were given to him this quarter. This quarter’s ESOP-related expense is a one-time non-cash accounting adjustment, and the firm has made it clear that it has no bearing on its cash reserves or fundamental business performance.

With revenue climbing 9% sequentially to Rs 545 crore, Paytm’s expanding financial services division is a key factor in the company’s journey to profitability. This growth is being aided by more merchant loan disbursements and improved collection efficiency. Meanwhile, the merchant ecosystem of Paytm is growing. The company’s network of payment devices gained 8 lakh new merchants during the quarter, increasing the overall number of merchant subscribers to 1.24 crore as of March 2025.

One of the main sources of Paytm’s income, its dominance in offline payments, is being strengthened by this continued merchant acceptance.

The firm claims that it has the financial freedom to invest in its core operations and upcoming product advancements thanks to its healthy cash position of Rs 12,809 crore as of the end of March 2025.