Paytm Shares Slip 8% After Q3 Results

Paytm Shares Plunge Nearly 9% During Intraday

SUMMARY

Shares of One97 Communications, the parent company of Paytm, slipped 8% to their intraday low of INR 826 apiece on the BSE a day after the fintech major reported a consolidated net loss of INR 208.5 Cr in Q3 FY25

Operating revenue slumped 36% YoY to INR 1,827.8 Cr during the quarter under review

JM Financial reinitiated its coverage on Paytm with a ‘buy’ rating and target price of INR 1,250, signaling an upside potential of 39% from the stock's last close

Shares of One97 Communications, the parent company of Paytm, slipped 8% to their intraday low of INR 826 apiece on the BSE today (January 21) after the fintech major reported a consolidated net loss of INR 208.5 Cr in the quarter ended December 31, 2024.

Net loss stood at INR 221.7 Cr in the same quarter last year.

It is pertinent to mention that the Vijay Shekhar Sharma-led company reported a net profit of INR 930 Cr in the September quarter of the current fiscal year.

Operating revenue slumped 36% to INR 1,827.8 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 2,850.5 Cr in the year-ago period. Sequentially, it rose 10% from INR 1,659.5 Cr on a quarter-on-quarter basis, led by growth in its payments and financial services businesses.

Adjusted EBITDA (excluding ESOP expenses) loss narrowed by 78% quarter-on-quarter to INR 41 Cr in Q3 FY25.

Earlier this week, brokerage JM Financial reinitiated its coverage on Paytm

with a ‘buy’ rating and target price of INR 1,250, signaling an upside potential of 39% from the stock’s previous close.

The stock has climbed over 4% in the last five trading sessions and surged more than 12% over the past 12 months.

The brokerage noted that Paytm has revaluated its business models following the regulatory action against Paytm Payments Bank last year and continues on a sustained recovery path.

It expects Paytm to achieve adjusted EBITDA profitability in Q4 FY25 and a profit after tax (PAT) breakeven in FY26.

In an exchange filing on Monday, along with its Q3 results, Paytm said that its arm Mobiquest Mobile Technologies will divest its entire 100% stake in its wholly owned subsidiary Xceed IT Solutions.

Meanwhile, another Paytm subsidiary, Paytm Cloud Technologies is set to incorporate three new subsidiaries in UAE, Saudi Arabia and Singapore. The move comes as the fintech major looks to expand and monetise its tech-enabled payments and financial services in international markets.

Paytm shares were trading 5.12% lower at INR 852 apiece on the BSE at 12:46 PM.