One 97 Communications Limited — Earnings Release 2025

May 6, 2025

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May 06, 2025

BSE Limited National Stock Exchange of India Limited Department of Corporate Services, The Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 543396 Symbol: PAYTM

Sub.: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements)

- Regulations, 2015 Earnings Release

Dear Sir / Ma’am,

In continuation to our earlier letter dated April 23, 2025, and pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with NSE Master Circular No. NSE/CML/2025/25 dated April 30, 2025 and BSE Master Circular No. dated April 30, 2024, please find enclosed copy of Earnings Release for the quarter and financial year ended March 31, 2025.

The Earnings Release will also be hosted on the Company's website viz. https://ir.paytm.com/financialresults.

Kindly take the same on record.

Thanking you Yours Sincerely, For One 97 Communications Limited

SUNIL KUMAR Digitally signed by SUNIL KUMAR BANSAL BANSAL Date: 2025.05.06 16:40:14 +05'30' Sunil Kumar Bansal Company Secretary and Compliance Officer

Encl. as Above

One 97 Communications Limited compliance.officer@paytm.com www.paytm.com

Corporate Office - One Skymark, Tower-D, Plot No. H-10B, Sector-98, Noida-201304 T: +91120 4770770 F: +91120 4770771 CIN: L72200DL2000PLC108985 Registered Office - 136, First Floor, Devika Tower, Nehru Place, New Delhi-110019

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Earnings Release

For the year and quarter ending March 2025

6 May 2025

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1

Earnings Release | Q4 FY 2025

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Q4 FY 2025 Revenue of ₹1,911 Cr; EBITDA Before ESOP and PAT[*] improved to ₹81 Cr and ₹(23) Cr, respectively

Achieved EBITDA Before ESOP (excluding UPI incentive) profitability as per guidance

Financial Highlights:

• Operating revenue of ₹1,911 Cr, up 5% QoQ

• Contribution profit of ₹1,071 Cr, up 12% QoQ; contribution margin of 56%

• EBITDA Before ESOP of ₹81 Cr, improvement of ₹121 Cr QoQ

• EBITDA of ₹(88) Cr, an improvement of ₹135 Cr QoQ

• PAT[*] of ₹(23) Cr, an improvement of ₹185 Cr QoQ

• UPI acquiring incentive of ₹70 Cr

• Cash balance of ₹12,809 Cr

Business Highlights:

• Net payment margin of ₹578 Cr, including UPI incentive; GMV of ₹5.1 Lakh Cr

• Payment Processing Margin, excluding UPI incentive, continues to be above 3 bps, in line with our guidance

• Merchant subscriber base for devices has reached 1.24Cr as of Mar’25, addition of 8 Lakh QoQ

• Financial services revenue increased to ₹545 Cr, up 9% QoQ

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Revenue growth momentum Achieved EBITDA Before ESOP PAT [] close to breakeven
continues profitability
₹1,911 Cr ₹81 Cr
₹(23) Cr
₹1,828 Cr
₹(41) Cr ₹(208) Cr
₹1,660 Cr
₹(186) Cr ₹(415) Cr
₹1,502 Cr
₹(545) Cr ₹(840) Cr
Jun-24 Sep-24 Dec-24 Mar-25 Jun-24 Sep-24 Dec-24 Mar-25 Jun-24 Sep-24 Dec-24 Mar-25
(Qtr ending) (Qtr ending) (Qtr ending)
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• excluding exceptional items

2

Earnings Release | Q4 FY 2025

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Summary P&L table

(Quarter ending, in ₹ Cr)	Jun-24	Sep-24	Dec-24	Mar-25 (Excl. UPI Incentive)	QoQ Growth	Description for Q4 FY 2025 results (excluding UPI incentive)	Mar-25 (Reported, incl. UPI Incentive)
Revenue from Operations 1,502 1,660 1,828 1,841 1% Growth momentum continues, despite festive season surge in the previous quarter 1,911
Contribution Profit 755 894 959 1,001 4% 1,071
Contribution Margin % 50% 54% 52% 54% 189bps Increase in share of high margin Financial Services revenue 56%
Indirect Expenses (1,301) (1,080) (1,000) (991) (1)% Leveraged AI to reduce non-sales employee cost (991)
EBITDA Before ESOP cost (545) (186) (41) 11 nm Achieved EBITDA Before ESOP profitability, as per guidance 81
Margin % (36)% (11)% (2)% 1% 282bps 4%
ESOP Cost (247) (218) (182) (169) (7)% ESOP cost to reduce significantly (169)
EBITDA (792) (404) (223) (158) (29)% (88)
PAT (Excluding exceptional items) (840) (415) (208) (93) (55)% PAT close to breakeven (23)
Exceptional Items* 0 1,345 0 (522) nm (522)
PAT (840) 930 (208) (615) 196% (545)

• Exceptional items include: 1) For Q2 FY 2025, gain of ₹1,345 Cr on account of sale of entertainment ticketing business; and 2) for Q4 FY 2025, ₹492 Cr charge towards acceleration of ESOP expense, and ₹30 Cr towards other impairments

Continued focus on payments and distribution of financial services for sustained, profitable growth

In Q4 FY 2025, we achieved operating revenue of ₹1,911 Cr, with an increase in revenues from distribution of financial services and ₹70 Cr of UPI incentive for FY 2025. Excluding the UPI incentive, revenue increased 1% QoQ, despite the festive season surge in payments volume in the previous quarter.

Our net payment margin, including UPI incentive was at ₹578 Cr. Excluding UPI incentive, net payment margin was ₹508 Cr (up 4% QoQ). Due to the seasonality benefit in Q3 mentioned above, Payments Services revenue (excluding UPI incentive) was down 3% QoQ, whereas payment processing cost was lower 9% QoQ (reduction of ₹50 Cr QoQ). Payment processing margin, excluding UPI incentive, continues to be above 3 bps, in line with our guidance. UPI incentive revenue was lower this year on account of lower incentive from the Government. The Industry expects MDR on UPI for large merchants to be allowed in the near future, which will result in incremental monetisation opportunities. We will update our payment processing margin guidance once we have clarity on MDR on UPI.

3

Earnings Release | Q4 FY 2025

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Financial Services revenue grew 9% QoQ, on account of higher share of merchant loans, higher trail revenue from Default Loss Guarantee (DLG) portfolio, and better collection efficiencies.

Contribution profit, including UPI incentive, was at ₹1,071 Cr (56% margin). Excluding UPI incentive, contribution profit was up 4% QoQ at ₹1,001 Cr with contribution margin of 54%, aided by higher share of Financial Services revenue. We have further reduced our indirect cost by 1% QoQ to ₹991 Cr, and 16% YoY, driven by various factors including reduction in non-sales employee costs by 36% YoY.

EBITDA Before ESOP, including UPI incentive was at ₹81 Cr. Excluding UPI incentive, EBITDA Before ESOP has improved by ₹51 Cr QoQ to ₹11 Cr.

This quarter, there are certain exceptional costs amounting to ₹522 Cr as detailed below:

• As mentioned in our filings, we have a one-time, non-cash, acceleration of ESOP expense of ₹492 Cr in Q4 FY 2025, which will result in an equivalent lowering of ESOP expenses in future quarters. Accordingly, starting from Q1 FY 2026, ESOP cost will be substantially lower with Q1 FY 2026 ESOP cost estimated to be in the range of ₹75-100 Cr as against ₹169 Cr in Q4 FY 2025.

• Impairment with regards to investment in certain associate/subsidiary amounting to ₹30 Cr.

Excluding these exceptional items, in Q4 FY 2025, PAT improved to ₹(23) Cr. Excluding UPI incentive and exceptional items, PAT improved by ₹115 Cr QoQ to ₹(93) Cr.

Key Focus Areas

We are focusing on the following areas to drive sustainable growth and profitability:

• Merchant payment: We will continue to strengthen merchant payment ecosystem with merchant payment innovations, including new devices and aggregation of various MDR-bearing payment instruments.

• Consumer acquisition: We will continue to drive MTU growth by focusing on product innovation and disciplined investments in marketing.

• International business: Our technology led merchant payments and financial services distribution business model has the potential for expansion in international markets. For additional long-term growth, we are exploring opportunities in select international geographies, which will start showing results after 3 years.

• Financial Services: We plan to increase high margin financial services revenue by expanding financial services partners and products.

4

Earnings Release | Q4 FY 2025

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Financial Update for quarter ending March 2025 (Q4 FY 2025)

Payment Services: Consolidating leadership in merchant payments

Paytm's platform has showcased remarkable consumer and merchant stickiness, despite the business disruptions in the first half of FY 2025. Our device merchant network continues to expand significantly, fueled by innovative offerings, a large field force and service infrastructure. The approval to onboard new UPI users reopens exciting avenues for growth in our MTUs, where we intend to grow by developing innovative products, and disciplined investments in marketing.

India's vast MSME sector presents a significant opportunity for mobile payments and financial service distribution. The company, a leading merchant acquirer, aims to capitalize on this by launching innovative payment solutions tailored for diverse merchant needs and expanding its network in tier-2 and tier-3 cities. Monetization strategies include subscription revenue, MDR revenue, distributing financial products based on merchant cash flows, and offering marketing services. The potential mobile payments accepting merchants in India are estimated at over 10 Cr, and we expect 40-50% of them needing software/hardware solutions in the long-term.

In Q4 FY 2025, Payment Services revenue (including other operating revenue) was ₹1,098 Cr. In Q3 FY 2025, there was a seasonal surge in payments volume owing to the festive season. Accordingly, in Q4 FY 2025, Services revenue (excluding UPI incentive) was down 3% QoQ, whereas payment processing was lower by 9% QoQ (reduction of ₹50 Cr QoQ).

Our Net payment margin, including UPI incentive was at ₹578 Cr. Excluding UPI incentive, net payment margin was ₹508 Cr (up 4% QoQ). Net payment margin is comprised of:

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Paytm Soundbox
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Net Payment Margin

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₹578 Cr
70
₹488 Cr
₹465 Cr
₹383 Cr
508
Jun-24 Sep-24 Dec-24 Mar-25
(Qtr ending)
Net payment margin UPI incentives for FY 2025
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1. Payment Processing Margin:

In Q4 FY 2024, GMV grew by 1% QoQ to ₹5.1 Lakh Cr, as GMV normalised after 13% QoQ growth in Q3 FY 2025. Payment processing margin, excluding UPI incentive, was comfortably above the guided 3bps margin. Our UPI incentive revenue was lower YoY on account of lower incentive from the Government. The Industry expects MDR on UPI for large merchants to be allowed in the near future, which will result in incremental monetisation opportunities. Our payment processing margin guidance will be updated once we have more details and clarity on MDR on UPI.

Gross Merchandise Value (Continued business)

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5.1 L Cr
5.0 L Cr
4.5 L Cr
4.3 L Cr 4.3 L Cr
Mar-24 Jun-24 Sep-24 Dec-24 Mar-25
(Qtr ending)
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5

Earnings Release | Q4 FY 2025

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2. Subscription revenues:

As of March 2025, merchant subscriptions were at 1.24 Cr, an increase of 8 Lakh QoQ. New subscription paying device merchant sign-ups continue to see strong growth. As communicated earlier, we are picking up inactive devices and redeploying them at new merchants after refurbishment, resulting in lower capex. Refurbishment costs are expensed through the P&L (part of indirect costs) and are much lower compared to the capex for new devices.

Over the last few quarters, we have worked on reducing the cost of devices, substantially increased refurbishment of old devices and increased the productivity of the sales team. We pass on some of the benefits to the highly engaged merchants, which is leading to greater retention, increase in market share, and larger funnel for loan distribution, resulting in overall higher merchant monetisation.

Merchant Subscriptions (including Devices)

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1.24 Cr
1.17 Cr
1.12 Cr
1.09 Cr
1.07 Cr
Mar-24 Jun-24 Sep-24 Dec-24 Mar-25
(Qtr ending)
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Paytm Mahakumbh Soundbox

We remain in the forefront with the launch of innovative new devices. We recently launched Solar Soundbox and Mahakumbh Soundbox. Paytm Solar Soundbox is India's first solar-powered soundbox for merchants, designed to provide uninterrupted payment alerts using solar energy, especially beneficial for small businesses in areas with limited electricity. The Paytm Mahakumbh Soundbox is an upgraded 4G-enabled Soundbox with a built-in digital screen for instant visual payment alerts alongside traditional audio confirmations, enhancing transaction tracking and privacy for merchants.

Monthly Transacting Users (MTU): Focus on product led growth

In Q4 FY 2025, our average MTU has increased to 7.2 Cr, as compared to 7.0 Cr in Q3 FY 2025 as we started onboarding of new UPI customers after NPCI granted us the approval in October 2024. We have updated our app to focus on payments and financial services, and are seeing early signs of user growth and retention. We will continue to drive MTU growth by developing innovative products, and disciplined investments in marketing.

Monthly Transacting Users

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9.6 Cr
Oct: NPCI approval
for UPI onboarding
7.8 Cr
7.2 Cr
7.1 Cr 7.0 Cr
Mar-24 Jun-24 Sep-24 Dec-24 Mar-25
(Qtr ending)
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6

Earnings Release | Q4 FY 2025

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Financial Services: Low penetration offers significant opportunity

In Q4 FY 2025, revenue from Financial Services and Others was ₹545 Cr, up 9% QoQ, on account of

higher share of merchant loans, higher trail revenue from Default Loss Guarantee (DLG) portfolio, and better collection efficiencies. We have seen strong growth in financial services revenue during the year on the back of better asset quality that our partners are experiencing. This is driving strong interest from various financial institutions to partner with us and we have added new partners during this quarter.

On a like-to-like basis (excluding Postpaid revenue), Financial services revenue has grown 10% in FY 2025 despite disruption during the 1st half of the year. This is on account of large number of deeply engaged customers and highly relevant products.

During Q4 FY 2025, 5.5 Lakh key financial services customers availed loans, equity broking, and insurance, through our platform. We've witnessed significant revenue growth in recent quarters despite a stable financial services customer count. The stable customer count is due to the personal loan credit cycle and a temporary slowdown in our equity broking business (Paytm Money) resulting from capital market regulatory adjustments. Looking ahead, we anticipate growth in financial services customers within both loan distribution and Paytm Money.

The outstanding AUM amount for DLG portfolios as on March 31, 2025 is ₹6,324 Cr as compared to ₹4,244 Cr on December 31, 2024.

Financial Services Revenue

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₹545 Cr
₹502 Cr
₹376 Cr
₹280 Cr
Jun-24 Sep-24 Dec-24 Mar-25
(Qtr ending)
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Financial Services Revenue (ex-Postpaid)

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₹1,688 Cr
₹1,538 Cr
₹1,034 Cr
₹335 Cr
FY 2022 FY 2023 FY 2024 FY 2025
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Number of Key Financial Services Customers

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7.9 L
5.9 L 6.0 L 5.9 L
5.5 L
Mar-24 Jun-24 Sep-24 Dec-24 Mar-25
(Qtr ending)
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7

Earnings Release | Q4 FY 2025

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Loan Distribution

Merchant Loans

With a large merchant acquiring network, largest payment device base, and partnership with banks and NBFCs, we are uniquely positioned to capitalize on the Merchant loan distribution opportunity. Even in a year when we experienced some disruption, merchant loan distribution registered a growth of 24% in FY 2025.

The merchant loan distribution business has grown from ₹1,386 Cr to ₹13,958 Cr from FY 2022 to FY 2025. This was achieved through growth in following operating parameters and we expect these trends to continue:

• Growth of device merchant base from 29 Lakh to 1.24 Cr (4.3x, a 63% CAGR)

• Growth in penetration from 3.5% to 5.4%, despite conservative approach to ensure better credit quality outcomes for our lending partners

• Growth in average ticket size from ₹1.4 Lakh to ₹2.1 Lakh (1.5x, a 15% CAGR)

More than 50% of loans distributed are to repeat borrowers. There are 10 Lakh merchants who have taken loans till date, creating a strong base for repeat loans. In the last 2 years, repeat loans have grown at a CAGR of more than 70% as against overall merchant loan growth of 50% CAGR.

During Q4 FY 2025, Merchant Loans distribution continues to see strong growth with a distribution of ₹4,315 Cr during the quarter, versus ₹3,831 Cr in Q3 FY 2025, with a significant proportion of merchant loans distributed under the DLG model.

Personal Loans

The value of Personal Loans distributed in Q4 FY 2025 has reduced to ₹1,422 Cr versus ₹1,746 Cr in Q3 FY 2025, as our lending partners continued with tightened risk policies, which is in line with the industry trends.

Lenders have taken the conservative view over the last 2 years due to the credit cycle. Based on the current discussions with our lending partners, there are early signs of recovery in the credit cycle, which could result in an increase in the business in the later part of the year. During FY 2025, we have added more partners to enable this growth.

Other financial services

We continue to invest in building equity broking and mutual fund distribution business by offering high quality trading platform at a low and transparent cost. Paytm Money has started offering Margin Trading Facility (MTF) and has been registered as a Research Analyst to offer research insights to investors. We are also expanding the distribution of mutual funds by leveraging SIPs and other wealth management products.

In Insurance, we are currently focusing on expanding through DIY on the App for motor and health insurance and building hybrid journeys for our Merchants.

8

Earnings Release | Q4 FY 2025

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Marketing Services: Driving additional monetization from Merchants

We enable merchants to do more commerce activities and these various offerings are availed by consumers on our App. Our Marketing Services business primarily includes advertising, travel ticketing, credit card distribution, and deals & gift vouchers.

In Q4 FY 2025, Marketing Services revenue was ₹267 Cr, flat QoQ. Going ahead, growth in MTU and increase in monetisation from existing consumers will be the key driver for revenue growth.

• The GMV for ticketing, deals & gift vouchers, etc., was ₹2,238 Cr, a marginal QoQ decline due to seasonality in the travel vertical, in line with the industry trend

• Credit card distribution is scaling at a slower pace as issuers are currently taking a cautious stance, which is evident in slower growth for the industry. There are 14.3 Lakh activated credit cards as of March 2025, compared to 11.8 Lakh a year back. Similar to consumer loans, we expect pick-up in growth in this segment in later part of the year

• In our advertising business, we are focusing on delivering higher ROI for advertisers through use of AI for sharper customer cohorting, & deeper relationships with advertisers

Marketing Services Revenue

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₹321 Cr
₹302 Cr
₹267 Cr ₹267 Cr
Jun-24 Sep-24 Dec-24 Mar-25
(Qtr ending)
Marketing Services Entertainment ticketing
Revenue business revenue
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Advertising &
Loyalty Services
Credit
Ticket Booking
Cards
‸‸
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9

Earnings Release | Q4 FY 2025

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Revenue and Contribution Profit

Operating revenue of ₹1,911 Cr. Contribution profit, including UPI incentive, was ₹1,071 Cr, with a contribution margin of 56%. Excluding UPI incentive, contribution profit increased 4% QoQ to ₹1,001 Cr with increase in contribution margin to 54% due to increased share of high margin financial services revenue.

• Payment processing charges were lower by 9% QoQ at ₹520 Cr

• Promotional cashbacks and incentives was ₹41 Cr, versus ₹37 Cr in Q3 FY 2025

• Other direct expenses increased 6% QoQ to ₹278 Cr, mainly on account of higher DLG cost

Indirect Expenses (excluding ESOP cost)

We continue to focus on expanding platform, through investment in marketing and sales employees. However, other portions of indirect costs has come down materially due to focused cost control, resulting in overall indirect cost decrease by 1% QoQ and 16% YoY in Q4 FY 2025. We expect indirect expenses to increase in Q1 FY 2026 on account of annual appraisals.

We are expanding our distribution network, leading to QoQ increase in sales employee cost to ₹243 Cr. Marketing cost was at ₹102 Cr, lower than we have historically spent since we are currently focusing on product-led MTU growth and increase in customer retention and monetisation. We will continue to make disciplined investments in marketing.

Our non-sales employee costs declined by 3% QoQ and 36% YoY as we continue to leverage AI for improving productivity across businesses. Software, cloud and data centre expenses declined by 5% QoQ and 10% YoY to ₹146 Cr. Other indirect expenses declined by 1% QoQ to ₹165 Cr (cost of refurbishment of devices is included in other indirect expenses).

Indirect Expenses (excluding ESOP cost)

(Qtr ending)

(in ₹ Cr) Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 YoY (%)	(in ₹ Cr) Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 YoY (%)	(in ₹ Cr) Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 YoY (%)	(in ₹ Cr) Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 YoY (%)	(in ₹ Cr) Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 YoY (%)	(in ₹ Cr) Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 YoY (%)	(in ₹ Cr) Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 YoY (%)
Cost of expanding platform:	340 401 353 331				345 1%
Marketing	83 177 125 104				102 23%
Sales employees	257 224 228 227				243 (5)%
Non-sales employee costs	522 482 385 348				336 (36)%
Software & Cloud expenses	162	182	158	154	146	(10)%
Other indirect expenses	162	236	184	167	165	2%
Total Indirect Expenses 1,185 1,301 1,080 1,000 991 (16)%

10

Earnings Release | Q4 FY 2025

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ESOP Cost and ESOP Pool Schedule

In line with the trends seen in previous 3 quarters, Q4 FY 2025 ESOP cost was lower at ₹169 Cr, on account of ESOP lapses at the time of employee separation during the quarter. Our FY 2025 ESOP cost was ₹815 Cr versus expected charge of ₹1,176 Cr disclosed in Q4 FY 2024 earnings release.

On April 16, 2025, our Founder and CEO, Mr. Vijay Shekhar Sharma informed the Company that he has voluntarily forgone all 2.1 Cr ESOPs granted to him. The NRC has treated these ESOPs as cancelled and the same have been returned back to the ESOP pool. This will result in a one-time, non-cash, acceleration of ESOP expense of ₹492 crores in Q4 FY 2025, and an equivalent lowering of ESOP expenses in future years. Starting from Q1 FY 2026, ESOP cost will be substantially lower with Q1 FY 2026 ESOP cost estimated to be in the range of ₹75-100 Cr as against ₹169 Cr in Q4 FY 2025.

Consequent to the above and as per IND AS 102, entire cost of the underlying ESOP grant amounting to ₹4,092 Cr (recorded in the Statement of Profit and Loss from FY 2022 to FY 2025), has been credited back to Retained Earnings of the Company and therefore, has increased the free reserves of the Company.

ESOP Pool Schedule

As of May 6, 2025	(in Cr.)
Basic shares outstanding	63.8
ESOPs vested and unexercised	0.2
ESOPs granted and unvested	1.1
ESOPs available for distribution	2.9
Estimated fully diluted shares	67.9

Capex

Capex for FY 2025 was ₹317 Cr versus ₹813 Cr for FY 2024. Lower capex is largely on account of reduction in cost of devices, focus on refurbishment of devices (cost of refurbishment of devices is included in other indirect costs) & lower device deployments in first half of FY 2025. Going forward, we expect capex to increase in line with increased pace of device deployment, however capex will be much lower than FY 2024 levels (pre disruption) even though we are deploying more devices than previously.

This has resulted in depreciation & amortization (D&A) expenses for Q4 FY 2025 to come down further to ₹150 Cr, a reduction of 9% QoQ & 23% YoY. We expect D&A expenses to be in the range of ₹500-₹600 Cr in FY 2026.

Cash Balance

Our cash balance is ₹12,809 Cr as of quarter ending March 2025, as compared to ₹12,850 Cr as of quarter ending December 2024. The above excludes Paytm Money Ltd (PML) customer funds and Merchant Funds in Escrow/Nodal of ₹326 Cr and ₹2,467 Cr, for March 2025 quarter, and ₹287 Cr and ₹2,454 Cr, for December 2024 quarter, respectively.

Our cash balance has increased by ₹4,498 Cr during FY 2025, primarily on account of monetization of two non-core assets (entertainment ticketing business, and our stock acquisition rights in PayPay) for ₹4,386 Cr.

11

Earnings Release | Q4 FY 2025

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EBITDA and Profit After Tax

EBITDA Before ESOP, including UPI incentive was at ₹81 Cr. Excluding UPI incentive, EBITDA Before ESOP improved by ₹51 Cr QoQ to ₹11 Cr. As guided, we achieved the EBITDA Before ESOP profitability in this quarter. EBITDA, including UPI incentive, was ₹(88) Cr. Excluding UPI incentive, EBITDA improved by ₹65 Cr QoQ to ₹(158) Cr.

This quarter, there are certain exceptional costs amounting to ₹522 Cr as detailed below:

• As mentioned in our filings, we have a one-time, non-cash, acceleration of ESOP expense of ₹492 Cr in Q4 FY 2025, which will result in an equivalent lowering of ESOP expenses in future quarters. Accordingly, starting from Q1 FY 2026, ESOP cost will be substantially lower with Q1 FY 2026 ESOP cost estimated to be in the range of ₹75-100 Cr as against ₹169 Cr in Q4 FY 2025

• Impairment with regards to investment in certain associate/subsidiary amounting to ₹30 Cr

Excluding these exceptional items, in Q4 FY 2025, PAT improved to ₹(23) Cr. Excluding UPI incentive and exceptional items, PAT improved by ₹115 Cr QoQ to ₹(93) Cr.

Consequent to the voluntarily forgoing of the ESOP and their returning back to the ESOP pool, as per IND AS 102, entire cost of the underlying ESOP grant amounting to ₹4,092 Cr (recorded in the Statement of Profit and Loss from FY 2022 to FY 2025), has been credited back to Retained Earnings of the Company and therefore, has increased the free reserves of the Company.

QoQ PAT improvement bridge (excluding UPI incentive)

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Q3 FY2025 PAT Chart Title Q4 FY2025 PAT
Higher other
Income/cost
Lower D&A on higher cash
Expenses balance
Reduction in on lower capex
ESOP Cost in FY 2025 ₹(93) Cr
to continue
₹15 Cr
₹13 Cr ₹36 Cr
₹52 Cr
₹15 Cr
₹13 Cr
Increase in EBITDA
Before ESOP
₹(208) Cr ₹51Cr Operating leverage
driving profitability
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• Q4 FY 2025 PAT is excluding exceptional items of ₹(522) Cr

• ** Other income/cost include Other income, Finance costs, Share of profit / (loss) of associates / joint ventures, Income Tax expense

12

Earnings Release | Q4 FY 2025

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Summary of Consolidated Financial Performance

Particulars (in ₹ Cr)	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended	Year Ended	Year Ended
	Mar-25 (Audited) Mar-24 (Audited) YoY Dec-24 (Unaudited) QoQ					Mar-25 (Audited) Mar-24 (Audited) YoY
Payment Services	1,046	1,554	(33)%	1,003	4%	3,879	6,128	(37)%
Financial Services and Others	545	304	79%	502	9%	1,703	2,004	(15)%
Marketing Services	267	395	(32)%	267	0%	1,158	1,738	(33)%
Other Operating Revenue	52	14	271%	56	(7)%	160	108	48%
Revenue from Operations	1,911	2,267	(16)%	1,828	5%	6,900	9,978	(31)%
Payment processing charges	520	715	(27)%	570	(9)%	2,125	3,280	(35)%
As % of GMV	0.10%	0.15%	(5) bps	0.11%	(1)bps	0.15%	0.23%	(8) bps
Promotional cashback & incentives	41	46	(11)%	37	11%	151	310	(51)%
Other direct expenses	278	219	27%	262	6%	946	850	11%
Total Direct Expenses	840	979	(14)%	869	(3)%	3,222	4,440	(27)%
Contribution Profit	1,071	1,288	(17)%	959	12%	3,678	5,538	(34)%
Contribution Margin %	56%	57%	(79) bps	52%	354bps	53%	56%	(220) bps
Indirect Expenses	991	1,186	(16)%	1,000	(1)%	4,369	4,979	(12)%
Marketing	102	83	23%	104	(2)%	508	612	(17)%
Employee cost (Excl ESOPs)	579	779	(26)%	575	1%	2,473	3,124	(21)%
Software, cloud and data center	146	162	(10)%	154	(5)%	639	643	(1)%
Other indirect expenses	165	162	2%	167	(1)%	749	600	25%
EBITDA Before ESOP Cost	81	102	(21)%	(41)	nm	(691)	559	nm
Margin %	4%	5%	(30) bps	(2)%	644 bps	(10)%	6%	(1,561) bps

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Earnings Release | Q4 FY 2025

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Summary of Key Operational Metrics

Operational KPIs	Units	Quarter Ended	Quarter Ended	Quarter Ended	Quarter Ended
		Mar-25 (Unaudited)	Mar-24 (Unaudited)	YoY	Dec-24 (Unaudited)
Registered Merchants (end of period)	Cr	4.4	4.1	9%	4.3
Payment Devices (cumulative; end of period)	Cr	1.24	1.07	17%	1.17
GMV	₹ Lakh Cr	5.10	4.69	9%	5.04
GMV (Continued Business)*	₹ Lakh Cr	5.10	4.29	19%	5.04
Merchant Transactions	Cr	1,184	962	23%	1,108
Total Transactions	Cr	1,317	1,129	17%	1,232
Average Number of Sales Employees	#	36,724	36,521	1%	32,019
Cost of Sales Employees (including training)	₹ Cr	243	257	(5)%	227
MTU (average over the period)	Cr	7.2	9.6	(25)%	7.0
Key financial services customers	Lakh	5.5	7.9	(31)%	5.9
Value of personal and merchant loans distributed** ₹ Cr 5,738 5,079 13% 5,577

*Continued business excludes disrupted products such as Wallet, Postpaid etc

**As communicated in Q2 FY 2025 earnings release, key financial services customers will be the relevant metrics for tracking financial services and accordingly disclosure on value of loans disbursed will be discontinued after Q4 FY 2025

Reconciliation of EBITDA Before ESOP with Profit / (Loss) for the period

Particulars (in ₹ Cr)	Quarter Ended	Year Ended
	Mar-25 (Audited) Mar-24 (Audited) YoY Dec-24 (Unaudited) QoQ	Mar-25 (Audited) Mar-24 (Audited) YoY
EBITDA Before share based payment expenses (A) 81 103 (21)% (41) (298)% (691) 559 (224)%
Share based payment expenses (B) (169) (326) (48)% (182) (7)% (815) (1,466) (44)%
Finance costs (C) (4) (5) (20)% (4) 0% (16) (24) (33)%
Depreciation and amortization expense (D) (150) (196) (23)% (165) (9)% (673) (736) (9)%
Other income (E) 224 132 70% 189 19% 724 547 32%
Share of profit/(loss) of associates/joint ventures (F) 0 (17) nm 0 nm 3 (38) nm
Exceptional items (G) (522) 0 nm 0 nm 823 (6) nm
Income Tax expense (H) (3) (14) (79)% (5) (40)% (18) (32) (44)%
Loss on Impairment of Associate (I) 0 (227) nm 0 nm 0 (227) nm
Profit / (Loss) for the period/year (J=sum of A to I) (545) (550) (1)% (208) 162% (663) (1,422) (53)%

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Earnings Release | Q4 FY 2025

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Indicative Performance Metrics for Loan Distribution (Mar 2025 quarter)

	Merchant Loans
Bounce Rates	NA
Bucket 1 Resolution %	83% to 90%
Recovery Rate Post 90+	30% to 35%
ECL% 4.5% to 5.0%

Loans are underwritten and booked by our lending partners in their balance sheets. Paytm acts as a collection outsourcing partner and the numbers are hence indicative of those efforts

Breakup of available Cash and investable balance (Net Cash Balances)

Particulars (in ₹ Cr)		Mar-24	Jun-24	Sep-24	Dec-24	Mar-25
Cash and Bank Balances		6,460	5,322	4,928	4,451	4,539
Deposits with banks		2,329	3,486	3,617	6,997	7,018
Investments (Mutual Funds/T-Bills/CP/G- Sec/NCD/NBFC FDs)		2,345	2,743	4,540	4,143	4,046
Total Balances		11,134	11,552	13,085	15,591	15,602
Paytm Money Ltd (PML) customer funds		339	449	412	287	326
Merchant Funds in Escrow / Nodal		2,483	2,995	2,674	2,454	2,467
Total Balances (excluding PML and merchant funds)		8,311	8,108	9,999	12,850	12,809

Note: The Company maintains distinct Bank accounts (Escrow and Nodal) for online and offline payments business. Previously, balances in these accounts were netted off against “Payable to Merchants” appearing under “Other Financial Liability” in financial statements. For the year ended March 31, 2025, to enhance transparency and clarity, the balances in these separate Bank accounts are now presented on a gross basis. Previous quarters numbers have also been reinstated to provide correct comparatives.

Definitions for Metrics & Key Performance Indicators

Metric	Definition
GMV	GMV is the rupee value of total payments made to merchants through transactions on our app or our in- store payment solutions, and payments processed through Paytm payment gateway, over a period. It excludes any consumer-to-consumer payment service such as money transfers
Monthly Transacting User (MTU)	Number of unique users in a particular calendar month who have successfully completed a transaction on the Paytm App or have used the Paytm for Business App
Net Payments Margin	Payments revenues (including other operating revenue) less payments processing charges
Contribution Profit	Contribution profit is a non-GAAP financial measure. We define Contribution profit as revenue from operations less payment processing charges, promotional cashback & incentives expenses, connectivity & content fees, contest, ticketing expenses & logistics, deployment & collection cost of our businesses
Financial Services customers	Key financial services customers are unique consumers and merchants who have availed Paytm’s and group entity’s financial services offerings, i.e. equity broking, insurance and credit products, such as merchant and consumer loans distributed through our platform. However, it does not include customers availing mutual fund distribution, Postpaid loans or any attachment insurance products, as they contribute negligible revenue/profitability

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Earnings Release | Q4 FY 2025

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Pioneer of India’s mobile payment revolution

Paytm is India's leading mobile payments and financial services distribution company. Pioneer of the mobile QR payments revolution in India, Paytm builds technologies that help small businesses with payments and commerce. Our mission is to serve half a billion Indians and bring them to mainstream of economy with help of technology.

Q4 FY 2025 Earnings Call

Please join for our Earnings Conference call for the shareholders, investors and `x analysts to discuss financial results of the Company for the quarter ended March 31, 2025.

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th May 2025
6 06:00 PM – 07:00 PM
Pre-Registration
Download the report at
ir.paytm.com
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Earnings Release | Q4 FY 2025

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By reading this release you agree to be bound as follows:

This earnings release is prepared by One 97 Communications Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of any -particular person and is not and nothing in it shall be construed as an invitation, offer, solicitation, recommendation or advertisement in respect of the purchase or sale of any securities of the Company or any affiliates in any jurisdiction or as an inducement to enter into investment activity and no part of it shall form the basis of or be relied upon in connection with any contract or commitment or investment decision whatsoever. This earnings release does not take into account, nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. Before acting on any information you should consider the appropriateness of the information having regard to these matters, and in particular, you should seek independent financial advice. This earnings release and its contents are confidential and proprietary to the Company and/or its affiliates and no part of it or its subject matter be used, reproduced, copied, distributed, shared, retransmitted, summarized or disseminated, directly or indirectly, to any other person or published in whole or in part for any purpose, in any manner whatsoever.

The information contained in this earnings release is a general background information of the Company and there is no representation that all information relating to the context has been taken care of in the earnings release. We do not assume responsibility to publicly amend, modify or revise any information contained in this earnings release on the basis of any subsequent development, information or events, or otherwise. This earnings release includes certain statements that are, or may be deemed to be, “forward-looking statements” and relate to the Company and its financial position, business strategy, events and courses of action.

Forward-looking statements and financial projections are based on the opinions and estimates of management as on the date such statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forwardlooking statements and financial projections. Representative examples of factors that could affect the accuracy of forward looking statements include (without limitation) the condition of and changes in India’s political and economic status, government policies, applicable laws, international and domestic events having a bearing on Company’s business, and such other factors beyond our control.

Forward-looking statements and financial projections include, among other things, statements about: our expectations regarding our transaction volumes, expenses, sales and operations; our future merchant and consumer concentration; our anticipated cash needs, our estimates regarding our capital requirements, our need for additional financing; our ability to anticipate the future needs of our merchants and consumers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Forward-looking statements are not guarantees of future performance including those relating to general business plans and strategy, future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and no representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts in the earnings release, if any, are correct or that any objectives specified herein will be achieved.

We have converted financial amounts from ₹ millions into ₹ Cr and hence there could be some totaling anomalies in the numbers.

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Earnings Release | Q4 FY 2025

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Notes and Disclaimers for Earnings Release

We, or any of our affiliates, shareholders, directors, employees, or advisors, as such, make no representations or warranties, express or implied, as to, and do not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein and accept no liability whatsoever for any loss, howsoever, arising from any use or reliance on this earnings release or its contents or otherwise arising in connection therewith. The information contained herein is subject to change without any obligation to notify any person of such revisions or change and past performance is not indicative of future results.

This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. No rights or obligations of any nature are created or shall be deemed to be created by the contents of this earnings release.

Use of Operating Metrics

The operating metrics reported in this earnings release are calculated using internal Company data based on the activity of our merchants, consumers and other participants in our ecosystem. While these numbers are based on what we believe to be reasonable estimates of engagement, for the applicable period of measurement, there are inherent challenges in measuring usage across our large online, offline, in-store and mobile presence. The methodologies used to measure these metrics require significant judgment and are also susceptible to algorithm or other technical errors. We regularly review our processes for calculating these metrics, and from time to time we may discover inaccuracies in our metrics or may make adjustments to improve their accuracy, which can result in adjustments to previously disclosed metrics. In addition, our metrics will differ from estimates published by third parties due to differences in methodology.

Non-GAAP Financial Measures

In addition to our results determined in accordance with Ind AS, we believe the following Non-GAAP measures are useful to investors in evaluating our operating performance. We use the following Non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Non-GAAP financial information, when taken collectively with financial measures prepared in accordance with Ind AS, may be helpful to investors because it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies in our industry because it provides consistency and comparability with past financial performance. However, our management does not consider these Non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with Ind AS.

Non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with Ind AS. Non-GAAP financial information may be different from similarly-titled Non-GAAP measures used by other companies. The principal limitation of these Non-GAAP financial measures is that they exclude significant expenses and income that are required by IndAS to be recorded in our financial statements, as further detailed below. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these Non-GAAP financial measures. A reconciliation is provided below for each Non-GAAP financial measure to the most directly comparable financial measure prepared in accordance with Ind AS. Investors are encouraged to review the related Ind AS financial measures and the reconciliation of Non-GAAP financial measures to their most directly comparable Ind AS financial measures included below and to not rely on any single financial measure to evaluate our business.

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