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“We Are on the Verge of Profitability”: Vijay Shekhar Sharma — Are Brighter Days Ahead for Paytm?
One 97 Communications, owner of Paytm, posts an operational profit of ₹81 crore for the March quarter, excluding ESOP costs, in line with its earlier guidance.

By Kumar Harshit

on May 8, 2025

In good news for the believers in Paytm, One 97 Communications registered around a 7 percent surge in its share price on Wednesday morning. This comes as the company registers a narrowing down of losses to Rs 545 crore for the fourth quarter ended March 31, 2025. Post the surge, the shares of Paytm rose to Rs 870 on the BSE, while at the NSE, it is priced at Rs 869.80, climbing 6.74 percent from its past figure. 

The company narrowed its losses to ₹545 crore in the fourth quarter ending March 31, driven by lower payment processing charges and reduced employee benefit expenses, as per the report by ET. The company had reported a loss of around Rs 551 crore in the same period a year ago, it said in a regulatory filing. 

Profits Reported 

"Paytm's PAT (profit after tax) has improved by Rs 185 crore quarter-over-quarter to a negative of Rs 23 crore in the fourth quarter of financial year 2025, excluding a one-time exceptional ESOP charge of Rs 522 crore," the company said in a statement on Tuesday.

At the same time, the company reported an operational profit of ₹81 crore for the March quarter, excluding ESOP costs, in line with its guidance.

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Lowering Costs Quarter by Quarter 

Speaking about ESOP costs in Q4 at the earnings call, Vijay Shekhar Sharma, Paytm's CEO, says, "As you are aware, we had one one-time charge this quarter. Our ESOP expenses have reduced quarter on quarter previously and are expected to be even lower next quarter.”

He further adds, “We are at the verge of profitability and are confident to deliver on it if everything goes well.” The founder seems pretty confident regarding delivering on the expectations of the Paytm lovers and investors. 

Future of Paytm 

To understand the future of Paytm, two statements made during the company's earnings call are worth noting. First is the CEO’s statement, where he says, “ We have 200–250 million repeat users on our platform. Rather than overspend on marketing, we’re focused on investing in technology to enhance user value and drive sustained growth.”

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Second is the statement made by Madhur Deora, CFO-Paytm, in the earnings call, where he says, “Going forward, our consumer growth will be product-led. We continue to see opportunities in financial services distribution across broking and lending, as well as advertising. On the consumer side, we remain optimistic on account of a highly engaged user base."