- Paytm reported a net income of 1.23 billion rupees for Q1 2025.
- This is a significant improvement from the 8.39 billion rupees loss reported in the same quarter last year.
- Analysts had anticipated a net loss of 1.27 billion rupees, so the results surpassed expectations.
- Paytm‘s revenue for the quarter stood at 19.2 billion rupees, marking a 28% increase year-on-year.
- However, the revenue was slightly below the estimated 19.68 billion rupees.
- Total costs for the quarter were reduced by 19% year-on-year to 20.2 billion rupees.
- The quarter included a one-time cost of 167 million rupees.
- Following the earnings announcement, Paytm‘s shares rose by 3.3% to 1,051 rupees.
- The trading volume on this movement was 8.72 million shares.
- Current analyst ratings on Paytm include 9 buys, 7 holds, and 3 sells.
Paytm on Smartkarma
Analysts on Smartkarma are closely monitoring Paytm, with two notable reports by Akshat Shah and Sudarshan Bhandari shedding light on different aspects of the company.
In his report titled “PayTM Block – US$242m Secondary Block Deal a Small One to Digest,” Akshat Shah discusses Antfin (Netherlands) Holding B.V.’s plan to raise up to US$242m by selling a 4% stake in Paytm. This move comes after Antfin has been gradually reducing its stake in the company since its November 2021 IPO. Shah evaluates the deal using an ECM framework, providing insights into the dynamics at play.
On the other hand, Sudarshan Bhandari in his report “Paytm 2.0: Growth Triggers Loading…” highlights Paytm‘s strategic shifts post-regulatory challenges, emphasizing efforts to enhance profitability and investor confidence. Bhandari notes that Paytm is focusing on high-margin verticals like lending and merchant services, aiming for a potential re-rating in FY26 with triggers such as MDR revival, PPBL embargo removal, and PA license approval in sight.
A look at Paytm Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
One 97 Communications Limited, known popularly as Paytm, is positioned for strong long-term growth, as indicated by its Smartkarma Smart Scores. With a notable score of 4 in Growth and a perfect 5 in Momentum, the company shows promise in expanding its market presence and maintaining positive performance trends. While its Value and Resilience scores are at a respectable level of 3, suggesting a solid foundation and financial health, the lower Dividend score of 1 may indicate a focus on reinvesting profits back into the business for further expansion. Overall, Paytm‘s Smart Scores suggest a bright future ahead, particularly in terms of growth and market momentum.
One 97 Communications Limited, the parent company of Paytm, is a payment solutions provider that offers a variety of online services such as hotel bookings, mobile top-ups, bill payments, and more. With a global customer base, Paytm‘s strong Smart Scores, particularly in Growth and Momentum, hint at a promising outlook for the company’s long-term prospects. Despite the lower Dividend score, indicating a lesser focus on distributing profits to shareholders, the overall assessment suggests that Paytm is well-positioned to capitalize on opportunities in the digital payment sector and maintain its trajectory of growth and innovation in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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