One 97 Communications Ltd, the parent company of Paytm, is set to announce its Q4FY25 earnings. After a turbulent year marked by regulatory setbacks from the Reserve Bank of India (RBI) against its payments bank arm, the fintech giant based in Noida, Uttar Pradesh, India, is showing signs of a potential turnaround. Analysts project a rebound in revenue and operational metrics, signaling cautious optimism for the company’s future.
One 97 Communications Ltd, the parent company of digital payments platform Paytm, headquartered in Noida, Uttar Pradesh, is set to report its Q4FY25 financial results today. The company has been under the spotlight following the Reserve Bank of India’s (RBI) directive on January 31, 2024, which ordered Paytm Payments Bank Ltd (PPBL) to cease operations by February 29 due to persistent non-compliances.
Despite facing a difficult past year—including a significant drop in share price and heavy operational losses—analysts suggest that the company could see a meaningful rebound in the fourth quarter. According to Ishan Tanna of Ashika Institutional Equity, Paytm is poised for growth, with expectations of ₹2,250 crore in revenue and ₹95 crore in EBITDA for the quarter.
Tanna added that the company is on track to achieve EBITDA breakeven by Q4FY25 and maintain profitability through FY26. Contributing factors include better cost control, growing UPI user base, and improved lending capabilities, with nearly 80% of platform loans now FLDG-backed.
Paytm’s troubles began with RBI’s crackdown on PPBL, its banking division, due to long-standing compliance failures including KYC issues, data sharing violations, and cyber risk management concerns. The situation led to a significant dent in Q1FY25 performance, including a ₹765 crore fall in operating revenue and a ₹648 crore EBITDA loss (excluding ESOP costs).
In January 2025, company CEO Vijay Shekhar Sharma expressed optimism about a revival, noting that Paytm had distanced itself from the troubled bank entity. He emphasized that changes in governance and business strategy had been implemented to course-correct.
The Q3FY25 earnings showed signs of stabilization, with narrowed losses at ₹208.5 crore and revenues of ₹1,827.8 crore. A significant one-time gain from divesting the ticketing business helped the company post a profit in Q2FY25. Looking ahead, YES Securities anticipates a 20% QoQ rise in operational revenue for Q4FY25, buoyed by UPI incentives and robust growth in financial services.
However, risks persist. Regulatory scrutiny, a slowdown in new merchant onboarding, and tempered growth in lending products could still challenge the fintech leader’s recovery.
As Paytm prepares to release its Q4FY25 earnings, all eyes will be on whether the numbers align with the optimism that analysts and management have projected for the company’s next chapter.
