Latest news with #ESOP-related
India Today
09-05-2025
- Business
- India Today
YES Securities raises Paytm target to Rs 975 on profitability turnaround and surge in merchant lending
In its Q4FY25 result note on Paytm (One97 Communications Ltd.), YES Securities has maintained an ADD rating and raised the stock's target price to Rs 975 from Rs 915, citing improvements in contribution margin, operating efficiency, and lending momentum. The brokerage noted meaningful sequential gains across key financial and operating metrics, even as regulatory incentives like UPI subsidies moderated grew 4.6% quarter-on-quarter to Rs 1,911 crore, with payment services revenue up 4.3% QoQ and financial services revenue up 8.6% QoQ, according to the report. Despite a sharp drop in UPI incentives (from Rs 288 crore in Q4FY24 to Rs 70 crore in Q4FY25), contribution profit rose 11.8% QoQ to Rs 1,072 crore, resulting in a contribution margin of 56.1%, up by 363 basis rise in contribution margin was driven by improvement in net payment margin and cost optimisation, especially in processing charges,' the analysts stated. The report highlighted that payment processing charges declined 8.8% QoQ, benefiting from favourable mix, seasonality, and partner rate adjustments. These efficiencies, combined with stable employee and platform costs, led to EBITDA before ESOP turning positive at 81 crore, compared to a loss of Rs 40 crore in the previous quarter. EBITDA margin improved by 642 bps sequentially, reaching 4.2%.YES Securities also noted that marketing, employee benefits, and software costs were largely flat or lower, indicating tight cost lending, merchant loan disbursals grew 12.6% QoQ to Rs 4,320 crore, with 50–60% of disbursements now under the Default Loss Guarantee (DLG) model. The report observed that nearly half of the merchant loans were repeat transactions, suggesting strengthening borrower behaviour and product DLG model is gaining momentum with lenders, and the higher-margin lending mix is helping revenue stability,' the report merchant subscription base rose 6% QoQ to 12.4 million, while the company continued to expand its device-led monetisation footprint across offline Securities reaffirmed Paytm's medium-term guidance of 30–35% revenue growth and 15–20% EBITDA margin, stating that future margin expansion is likely as ESOP-related expenses taper and monetisation brokerage further noted that ongoing discussions around MDR on UPI for large merchants could result in 5–8 basis points upside in net margin if implemented.'We maintain ADD rating on Paytm with a revised target price of Rs 975, valuing it at 5.4x FY27 Price-to-Sales,' the report concluded.
Fashion Network
07-05-2025
- Business
- Fashion Network
Paytm's parent One97 Communications eyes profitability in the coming quarter
Fintech firm One97 Communications, which owns the Paytm brand, expects to report profit after tax from the next financial quarter after reporting a consolidated loss of Rs 545 crore for the fourth quarter of the 2025 financial year due to exceptional expenses. 'We are at a verge of PAT (profit after tax) profitability," said Paytm's founder and CEO Vijay Shekhar Sharma on an earnings call on May 6, the Press Trust of India reported. "I am very sure that next quarter onwards if everything goes as we are seeing it could very well be a PAT quarter." Paytm's fourth quarter results for the 2025 fiscal year included a notional loss of Rs 522 crore, primarily due to accelerated employee stock ownership plan expenses of Rs 492 crore and impairments of Rs 30 crore. Excluding these exceptional items, the business' loss stood at Rs 23 crore. Paytm also reported an operational profit of Rs 81 crore after excluding ESOP-related costs for the past quarter. The year-on-year loss narrowed on the back of reduced payment processing charges and lower employee benefit expenses. The company had posted a loss of about Rs 551 crore in the same quarter a year prior, India Retailing reported. The business' revenue from operations declined by 15.7% to Rs 1,911.5 crore in the fourth quarter of the 2025 financial year down from Rs 2,267.1 crore in the March 2024 quarter. For the full financial year, losses reduced to Rs 645.2 crore from Rs 1,390.4 crore in the 2024 fiscal, while revenue fell by 31% to Rs 6,900 crore.
Economic Times
06-05-2025
- Business
- Economic Times
Paytm expects to turn profitable from next quarter: Vijay Shekhar Sharma
Paytm-owner One97 Communications expects to turn profitable next quarter. Despite a Rs 545 crore loss in Q4, excluding exceptional ESOP-related costs, the loss was only Rs 23 crore. Operational profit reached Rs 81 crore. Annual losses and revenue declined significantly year-on-year in FY25. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Fintech firm One97 Communications , the owner of Paytm brand, expects to turn profitable from the next quarter, a top company official said on Tuesday. Paytm reported a consolidated loss of Rs 545 crore during the March quarter, comprising a notional loss of Rs 522 crore stemming out of the acceleration of ESOP (employee stock ownership plan) expense of Rs 492 crore and Rs 30 crore towards their excluding the exceptional loss of Rs 522 crore, the company posted a loss of Rs 23 crore for the March quarter."We are at a verge of PAT (profit after tax) profitability. I am very sure that next quarter onwards if everything goes as we are seeing it could very well be a PAT quarter," Sharma said, during the company's earning company achieved operational profit of Rs 81 crore after excluding ESOP costs in the March quarter as per the guidance, Paytm consolidated loss of Paytm during the quarter also narrowed on a year-on-year basis following a reduction in payment processing charges and employee company had incurred a loss of about Rs 551 crore in the same period a year ago, it said in a regulatory from operations dropped 15.7% to Rs 1,911.5 crore during the quarter from Rs 2,267.1 crore in the March 2024 FY25, the company's loss more than halved to Rs 645.2 crore from Rs 1,390.4 crore in FY24. Revenue from operations declined about 31% to Rs 6,900 crore from Rs 9,977.8 crore.
Business Upturn
06-05-2025
- Business
- Business Upturn
Explained: Paytm's Q4 FY25 loss is due to this exceptional item and has actually narrowed substantially
By News Desk Published on May 6, 2025, 17:16 IST Paytm parent One 97 Communications Limited reported a net loss of ₹539.8 crore for Q4 FY25, which at first glance appears significantly wider than the ₹208.3 crore loss in the previous quarter. However, a closer look reveals that this headline figure is heavily influenced by exceptional, one-time charges—most notably an accelerated ESOP expense of ₹492 crore recorded during the quarter. Excluding these exceptional items and UPI incentives, the company's performance reflects a much healthier trend. On a comparable basis, Paytm's profit after tax (PAT) improved by ₹115 crore quarter-on-quarter, narrowing the adjusted loss to ₹93 crore in Q4 FY25 from ₹208 crore in Q3 FY25. The company stated that EBITDA before ESOP and including UPI incentives stood at ₹81 crore in Q4 FY25, while excluding UPI incentives, it was ₹88 crore—showing a ₹65 crore sequential improvement. Paytm attributed this positive movement to stronger operating leverage, lower depreciation and amortisation expenses due to reduced capex, and increased other income from higher cash reserves. The ₹492 crore exceptional charge stems from the CEO's voluntary decision to forgo ESOPs, which has been accounted for in compliance with Ind-AS 102. As a result, Paytm recorded this as a non-cash expense and also transferred ₹4,092 crore from its ESOP reserve back into retained earnings, boosting its free reserves. The company also incurred an additional ₹30 crore impairment on investments in certain associates or subsidiaries, taking the total exceptional items to ₹522 crore for the quarter. Despite the headline net loss figure, Paytm's internal financial bridge shows continued improvement in core profitability, setting a stronger base for FY26, especially with ESOP-related expenses expected to reduce significantly in upcoming quarters. News desk at
