Earnings Alerts

Paytm (PAYTM) Earnings Fall Short: Q2 Net Income Declines 98% While Revenue Grows 24%

By November 5, 2025 No Comments
  • Paytm‘s net income for the second quarter was significantly lower than expected at 210 million rupees, a 98% drop year-over-year, compared to the estimate of 1.35 billion rupees.
  • Revenue increased by 24% year-over-year to 20.6 billion rupees, slightly above expectations of 20.2 billion rupees.
  • Payment services generated 11.5 billion rupees in revenue, up 22% year-over-year, beating the estimate of 11.17 billion rupees.
  • Revenue from financial services and other segments rose sharply by 63% year-over-year to 6.11 billion rupees, surpassing the forecast of 5.79 billion rupees.
  • Marketing services revenue decreased by 25% year-over-year, totaling 2.28 billion rupees, below the predicted 2.56 billion rupees.
  • Total costs for the quarter were 20.6 billion rupees, a decrease of 8.4% year-over-year.
  • The average number of monthly transacting users increased by 5.6% year-over-year to 75 million.
  • Paytm plans to invest an additional 22.5 billion rupees in its unit, Paytm Payments Services, through a rights issue of shares.
  • Analyst recommendations for Paytm are 11 buys, 5 holds, and 3 sells.

Paytm on Smartkarma

Analysts on Smartkarma, such as Akshat Shah, are closely monitoring the movement of Antfin’s stake in Paytm. Antfin (Netherlands) Holding B.V. is looking to raise funds by selling off its remaining stake in Paytm. In a recent report titled “PayTM Block – US$434m Clean-Up by Antfin,” the analyst delves into the details of this strategic move. Antfin has gradually been reducing its stake in Paytm since the company’s IPO in November 2021, with the latest sell-off aimed at raising up to US$434 million. The report provides insights on the implications of this transaction within the context of the overall market.

Another report by Akshat Shah sheds light on Antfin’s plan to raise US$242 million through a secondary block deal involving Paytm. Titled “PayTM Block – US$242m Secondary Block Deal a Small One to Digest,” the analysis examines the dynamics of this transaction and its impact on the company’s financial position. With Antfin strategically divesting its stake in Paytm, investors are keen to understand the implications of such moves on the company’s future prospects. These insightful reports on Smartkarma offer valuable perspectives for investors navigating the complex landscape of financial markets.


A look at Paytm Smart Scores

FactorScoreMagnitude
Value2
Dividend1
Growth4
Resilience4
Momentum5
OVERALL SMART SCORE3.2

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, the parent company of Paytm, is showing strong potential for long-term growth according to Smartkarma Smart Scores. With impressive scores in Growth (4), Resilience (4), and Momentum (5), Paytm is positioned well to expand its market reach and adapt to changing business environments. While the Value score is modest at 2 and Dividend score low at 1, the company’s emphasis on growth and ability to withstand economic challenges are promising indicators for its future performance.

Paytm‘s focus on innovation and adaptability, as seen in its high scores for Growth, Resilience, and Momentum, suggests that the company may continue to thrive in the evolving digital payment landscape. Despite being less attractive in terms of value and dividend offerings, Paytm‘s strong performance in crucial areas essential for long-term success bodes well for investors seeking growth opportunities in the payment solutions sector.

### Summary: One 97 Communications Limited, the entity behind Paytm, offers a range of online services, including payment solutions, hotel bookings, mobile content, and bill payments, catering to a global customer base. ###


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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