
Paytm Q1 Results Preview: Co seen swinging to profit on healthy revenue growth
Paytm
is expected to report a turnaround in
profitability
in the first quarter of FY26, with analysts projecting a profit after tax (PAT) of over Rs 18.9 crore, compared to a net loss in the same quarter last year.
Revenue from operations is seen rising 27% year-on-year, driven by resilient performance in its payments and financial services verticals, according to brokerage
JM Financial
.
Explore courses from Top Institutes in
Select a Course Category
PGDM
Technology
Cybersecurity
Leadership
Design Thinking
Product Management
Data Science
Finance
MCA
Data Science
Project Management
Operations Management
MBA
Digital Marketing
Artificial Intelligence
healthcare
CXO
Data Analytics
Degree
others
Healthcare
Public Policy
Management
Others
Skills you'll gain:
Financial Analysis & Decision Making
Quantitative & Analytical Skills
Organizational Management & Leadership
Innovation & Entrepreneurship
Duration:
24 Months
IMI Delhi
Post Graduate Diploma in Management (Online)
Starts on
Sep 1, 2024
Get Details
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Sleep Apnea Ruined My Life – Then I Found This Simple Trick
Health Insight
Undo
Sequentially, YES Securities expects overall
revenue growth
of around 2%, adjusting for the Rs 70 crore UPI incentive booked in the March quarter.
Payments services revenue is forecast to rise 5% quarter-on-quarter, while financial services and others may grow 10% QoQ, aided by a likely improvement in loan disbursals, even as lower take rates and reducing First Loss Default Guarantees (FLDG) weigh on topline growth.
A key metric to watch will be the payment processing charges (PPC) as a percentage of payments revenue. YES Securities estimates this to rise to 55% in Q1, up from 49.8% in Q4FY25, mainly due to the absence of the UPI incentive benefit that had supported margins in the previous quarter.
Live Events
The company's profitability will also be shaped by its expense profile. YES Securities projects total expenses (excluding PPC and ESOP costs) to increase 5% QoQ, compared to 1% in Q4FY25.
This, coupled with lower operating leverage, may compress the EBITDA margin (excluding other income and ESOP cost) to just 0.6%, a sequential decline of 362 basis points.
Even so, JM Financial believes Paytm is on track to report PAT-level profitability, driven by improved contribution margins and indirect expense control. Notably, the company had booked an exceptional loss in Q4FY25 due to an accelerated charge on ESOP cancellations.
All eyes will be on the sustainability of Paytm's margin trajectory, the impact of lower FLDGs on financial services revenue, and commentary around UPI monetisation and lending partnerships as the company steps into a crucial post-regulatory transition phase.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
an hour ago
- Time of India
Rules Change 1st August: LPG Cylinder, Credit Card, UPI सहित 1 अगस्त से बदलेंगे ये अहम नियम
ग़जाला प्रवीन Produced by: | Navbharat Times• 27 Jul 2025, 10:39 pm Rules Change 1st August: LPG Cylinder, Credit Card, UPI सहित 1 अगस्त से बदलेंगे ये अहम नियम


Time of India
an hour ago
- Time of India
Robust tourism helps excise dept boost revenue by 45% since 2022
Panaji : Goa's excise department has seen a significant jump in revenue, with a 45% increase over the last four financial years. The department raked in Rs 947.9 crore in 2024-25, as against Rs 650 crore in 2021-22. This increase is attributed to robust tourist footfalls and enforcement by the department. Goa's excise collection shot up to Rs 865 crore in 2022-23 due to several measures implemented by the excise department. In 2023-24, the department's revenue increased to Rs 900.2 crore. Goa's excise revenue is largely driven by tourists who either purchase alcohol from retail stores or consume liquor at restaurants and hotels. Alcohol sales are also driven by events in the state. Data shared with the legislative assembly also shows that Rs 4.1 crore is owed to the department by 242 retail outlets, bars and alcohol manufacturers since 2018. Of the 242 defaulters, most are from Tiswadi and Salcete talukas. While some of the licence holders have come forward and cleared their dues, the department has been forced to issue notices to most of the excise licence holders to recover what is owed. Those outlets which have ignored notices and reminders to pay the annual audit fees risk having their licences being cancelledwith the department already proposing to cancel some licences">, said officials. In the Goa budget 2023-24, the excise duty on high-end liquor was reduced and duty on other categories of Indian made foreign liquor (IMFL) was marginally increased to shore up revenues. The department said that while no tax refund or waiver has been granted under the Excise Duty Act, applicants have been offered an adjustment of excise duty only in cases where permits are cancelled and the said excise duty paid for liquor goods in these cancelled permits are adjusted in their future permits.


Time of India
an hour ago
- Time of India
Govt owes tourism contractors over Rs 39.7cr with bills from 2019
Panaji : From housekeeping services and painting to legal fees and translations, the tourism department has racked up Rs 39.7 crore in unpaid bills. Contractors for events, vehicles and executed projects have been fretting with their money lying locked up with the tourism department as well as the Goa Tourism Development Corporation (GTDC), with some of the bills dating all the way back to 2019. Among those that the department owes money are govt entities such as Goa Human Resource Development Corporation Limited and Goa Electronics Limited. The tourism department's 17 outstanding bills are largely for tourism roadshows and trade fairs, and most are for the current year with just two bills dating back to Dec 2024. However, GTDC's track record of clearing bills of contractors and event management firms is not on par. The Goa Human Resource Development Corporation Ltd provided security services at GTDC residencies for 2019-20 for which it billed GTDC Rs 1.03 crore, an amount that remains unpaid, shows data released in the state legislative assembly. Invoices towards the organisation of the Manohar Parrikar Vidnyan Mahostav in Dec 2021 worth Rs 3.7 lakh also remain unpaid. Taxi bills worth Rs 8.65 crore remain unpaid, shows the data released in the state legislative assembly. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Emergency Generators in Sevilla: (Prices May Surprise You) Emergency Generator | Search Ads Search Now Undo Information provided by the department also shows that Rs 4.4 crore has to be released to a private firm for development of amenities at the Bom Jesus Basilica under the PRASHAD Scheme. GTDC said that many of these bills are 'under consideration' and will be cleared once scrutiny and approval is obtained. Bills for the G20 meetings, which were held in Goa, also remain unpaid. Goa hosted several G20-related meetings during India's presidency in 2023, including the G20 Tourism Working Group Meeting and the Tourism Ministers' Meeting.