Paytm Shares Slump Nearly 9%

Shares of Paytm parent One97 Communications slipped nearly 9% to INR 895.25 apiece during the intraday trading on the BSE today (January 8) after the NPCI’s UPI data showed that Paytm had a stagnant growth in monthly users in December.

The stock touched this low after December 3, 2024, when it was trading at INR 890.75.

As per NPCI data for UPI apps, Paytm retained its third position with its volume of user transactions standing at 1,150.96 Mn in December, reflecting a marginal rise from 1,075.09 Mn in the previous month.

Quoting the NPCI data, brokerage UBS pointed out that Paytm did not gain any share in UPI in December even after receiving the approval to add new customers in October 2024. Its share in the UPI market stood at 5.5% in the month, which was the same as the previous two months. 

The brokerage also said, “Paytm likely has not seen material monthly transactional user (MTU) addition in December. Paytm MTU came down from about 100 Mn in Jan to 68 Mn in September 2024. MTU increase (is) important for B2C offerings.”

However, UBS maintained its price target of INR 1,000 on Paytm and a ‘neutral’ rating.

The fintech player saw its market share nearly halve to 7.03% in 2024 from 14.1% in the previous year amid the RBI’s crackdown on its subsidiary Paytm Payments Bank. 

It is also pertinent to note that the Vijay Shekhar Sharma-led company allotted 1.48 Lakh equity shares to its eligible employees under various employee stock option plan (ESOP) schemes earlier this week.

In Q2 FY25, Paytm posted a consolidated profit after tax (PAT) of INR 930 Cr as against a loss of INR 292 Cr a year ago. Its revenue from operations fell 34% year-on-year to INR 1,660 Cr in the reported quarter from INR 2,519 Cr in the year-ago period.

Paytm shares ended the day 8.2% lower at INR 902.05 on the BSE.