Paytm AGM 2024: Our commitment is now to focus on PAT, says Vijay Shekhar Sharma; shares drop 1%

"We recognise that EBITDA before ESOP, due to its large ESOP charge, provides only a partial picture of our financial health," Sharma said.

Sharma added that the company's commitment is now to focus on PAT, reflecting its drive towards true profitability. “With a commitment to the core payments business, we aim to deliver PAT profitability soon,” Sharma said.

The fintech also said it will apply for a payment aggregator (PA) license to RBI in due course. 

The founder and managing director of One97 Communications earlier said, "We, as a nation, have leapfrogged to become leaders in financial technology, and now we have the opportunity and obligation to extend that leadership into AI technology. Paytm is committed to leading the industry with our advanced AI capabilities."

Sharma further said that their AI systems are already operational in Japan. Their risk management and fraud detection systems not only enhance their payment solutions in India but also support one of the largest mobile payment companies in Japan (PayPay), where they are also a potential shareholder. There is strong demand and high expectations for them to continue advancing our AI-powered risk management solutions.

Last seen, shares of the company were trading 1% lower at ₹660.45 apiece on the BSE.

Last month, the company received the government's approval for downstream investment in wholly-owned subsidiary Paytm Payments Services Ltd.

"With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to existing partners," Paytm filing said.

The Reserve Bank of India (RBI) had rejected Paytm's PA licence permit application in November 2022 and instructed the company to reapply with Press Note 3 compliance under the foreign direct investment norms.

As per Press Note 3, the government had made its prior approval mandatory for investments from nations that share land borders with India.