Paytm Shares Rally Over 9% After Q4 Results

Shares of Paytm parent, One97 Communications, soared 9.5% to INR 892.60 apiece on the BSE during intraday trading session today, a day after the company reported its fourth quarter financial results.

The company’s stock closed 7.2% at INR 873.85 per share on the BSE, compared to its previous close of INR 815.30 apiece.

The Vijay Shekhar Sharma-led fintech major managed to trim its annual loss by 54% to INR 663.2 Cr in FY25 from INR 1,422.4 Cr in the previous year, while its operating revenue stood at INR 6,900.4 Cr, marking a 31% decline from INR 9,977.8 Cr in FY24.

In terms of its quarterly performance, the company reported a consolidated net loss of INR 544.6 Cr in the Q4 FY25, a 1% fall from INR 550.5 Cr loss it incurred in the previous year.

However, Paytm’s operating revenue for the quarter under review dipped 19% YoY to INR 1,911.5 Cr from INR 2,267.1 Cr in Q4 FY24.

On the back of recovering annual performance and slight improvement in sequential revenue growth, JM Financial has raised its target price (PT) for the company to INR 1,070, from INR 1,000 previously. Also, the brokerage maintained its rating on the stock as “buy.” 

On the company’s bottomline, the brokerage remarked that Paytm’s impact on UPI incentives would be compensated by limited rise in indirect expenses, while the drop in employee stock option plan (ESOP) expenses would result in sharp jump in PAT profitability.

“With headwinds behind and adjusted EBITDA profitability achieved, we forecast Paytm to sustain the momentum while continuing to be highly disciplined on costs,” JM Financial said.

The brokerage further said, “We also expect Paytm to benefit from virtuous network effects, deserving of a platform, to deliver sharp margin expansion.”

This comes months after Paytm CFO Madhur Deora mentioned that the company is expecting to turn profitable on an adjusted EBITDA basis in one or two quarters, during the Q3 FY25 earnings call.

Ahead of its financial results announcement, the company’s board approved the allotment of 63,108 equity shares and 1,04,400 stock options to the eligible employees under ESOP 2019. 

Market capitalisation of the fintech unicorn stands at INR 55,738.13 Cr (around $6.58 Bn).

Meanwhile, the market indices recovered its losses for the day and ended in above the line, where BSE Sensex ended 0.13% up at 80,746.78, while Nifty 50 closed 0.14% higher at 24,414.40 today.