Shares of Paytm parent company One97 Communications will remain in focus in Wednesday’s trading session after the fintech company declared its June quarter earnings on July 22 after the market hours.
On Tuesday, One97 Communications share price rose 3.5 per cent to close at ₹1,053.10. The stock has gained over 5 per cent in past five trading sessions and nearly 19 per cent in a month.
Paytm Q1 results 2025
The company posted a consolidated net profit of ₹122.5 crore in Q1FY26, a significant improvement from a net loss of ₹839 crore in the same period last year.
Its operating revenue climbed 28% year-on-year to ₹1,917 crore, up from ₹1,502 crore in Q1FY25. On a quarter-on-quarter basis, revenue growth was modest at 0.3%, compared to ₹1,911 crore in Q4FY25, when the firm had recorded a net loss of ₹540 crore.
The revenue boost was driven by a rise in subscription-based merchants, increased Gross Merchandise Value (GMV), and higher income from financial services distribution.
The company reported a turnaround in its financials, with EBITDA reaching ₹72 crore (a 4% margin) and profit after tax (PAT) at ₹123 crore. This improvement was attributed to AI-driven operational efficiencies, a disciplined approach to cost management, and increased other income, according to the company’s filing.
“ Operating revenue for Q1 FY2025 stood at ₹1,502 crore as reported by Paytm, broadly in line with expectations. Merchant payment metrics have rebounded, and consumer metrics remain stable. The business continues to suffer from recent operational disruptions and regulatory changes, but management expects improvement in subsequent quarters as merchant activity recovers,” said Khushi Mistry, Research Analyst at Bonanza.
Mistry further said that Paytm’s Q1 results are a reasonable step on its path to post-disruption recovery. Merchant activity and platform resilience are encouraging, but investors will look for sustained profitability and clarity on regulatory issues.
Paytm share price – Should you buy or sell post Q1 results 2025?
Drumil Vithlani, Technical Research Analyst at Bonanza, while recommending ‘ hold’, said that Paytm has been consistently forming an HH-HL structure, indicating a sustained uptrend.
“ For those holding existing positions, it is advisable to maintain a stop-loss at ₹1000 and continue holding for a potential upside towards ₹1,100, provided the stock sustains above the breakout zone with supportive volume action,” Vithlani said.
Meanwhile, brokerage firm Jefferies has upgraded the Paytm stock to ‘buy’ from earlier rating of ‘hold’, along with raising the target price to ₹1,250 from ₹900 earlier after the Q1 results.
Jefferies is of the view that although the sequential growth in Monthly Transacting Users (MTU) and Gross Merchandise Value (GMV) is promising, contribution margins are likely to settle at slightly lower levels over the next two to three quarters.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
