Paytm reports wider loss in Q4, shares decline

Paytm, an Indian digital payments and financial services company, has reported a wider loss for the fourth quarter, attributed mainly to stock options affecting earnings. According to the company’s latest financial results, losses narrowed to Rs 539.80 crore, but significant expenses, including an exceptional cost of Rs 522 crore, impacted the overall outcome.

Despite these losses, Paytm achieved operational profitability when excluding Employee Stock Ownership Plan (ESOP) costs. However, revenue took a hit with a decline of nearly 16%, further contributing to the company’s financial challenges during this period.

As Paytm released its Q4 results, the stock market showed some volatility. Broader markets and auto stocks outperformed, with both the SENSEX and NIFTY indices experiencing fluctuations between gains and losses. The market’s broader performance did not reflect positively on Paytm, as its shares saw a dip following the financial report.

The VIX, a measure of market volatility, also rallied by 3.58%, suggesting increased uncertainty and risk in the financial environment. While the NIFTY index settled below 24,400, Paytm’s shares underperformed amid these broader market dynamics.

The recent financial data from Paytm highlights the ongoing challenges the company faces as it navigates cost pressures related to stock options and fluctuating revenues amidst a volatile stock market climate.