Shares of One97 Communications, the parent company of Paytm, jumped 6% on May 7 after the fintech firm reported a narrowed net loss of ₹540 crore for the fourth quarter of FY25, compared to ₹550 crore in the same period last year.
Financial Highlights
- Revenue from operations declined 16% YoY to ₹1,912 crore, down from ₹2,267 crore in Q4FY24.
- EBITDA turned positive, with a surplus of ₹81 crore during the quarter.
- The company’s net loss included a one-time cost of ₹522 crore, primarily due to Employee Stock Options (ESOPs) granted to CEO Vijay Shekhar Sharma.
- Excluding the exceptional cost, Paytm’s net loss stood at ₹18 crore, signaling its progress toward profitability.
Market Reaction & Analyst Views
- Paytm shares were trading at ₹863 apiece in early trading on May 7.
- Brokerage firm Motilal Oswal reiterated its neutral rating on the stock, with a target price of ₹870 per share.
- Analysts expect steady business recovery, projecting a 29% revenue CAGR over FY25-27.
Future Outlook
Paytm continues to focus on merchant payments, financial services, and international expansion, with analysts predicting profitability by FY27.
