Paytm Soars 122% In A Year, Still Lags IPO Price By 53%; Will Q1 Results Push Paytm Higher?
Shares of One97 Communications, which operates Paytm, have surged over 122% in the past year; Whill it rally further?
Paytm Q1 Results Today: Shares of One97 Communications, which operates digital payments platform Paytm, have surged over 122% in the past year. Despite the sharp recovery, the stock remains 53% below its IPO issue price of Rs 2,150. All eyes are now on the company's June quarter (Q1FY26) results, due on July 22, which analysts say could determine the stock's next big move.
Paytm made its market debut in November 2021 with much anticipation but witnessed a steep fall of 27% on the listing day. After hitting a record low of Rs 438.35 in November 2022, the stock has staged a steady comeback and now trades around Rs 1,016.
While the rally has lifted investor sentiment, analysts believe that for the stock to return to its IPO levels, Paytm must demonstrate consistent earnings growth and improved operational performance.
Currently hovering around Rs 1,018, the stock has shown signs of a technical breakout, supported by a consistent pattern of higher highs and higher lows (HH–HL) on the charts. Technical analysts believe the upcoming June quarter results, due today, July 22, could be a key trigger for further upside.
'The stock has shown significant recovery and is forming a higher-high, higher-low structure on the weekly charts, which is a bullish signal," said Rajesh Bhosale, Technical Analyst at Angel One. He noted that a decisive close above Rs 1,100 could open the path towards Rs 1,250 and potentially Rs 1,400.
The company has been focusing on profitability, reporting an EBITDA before ESOP cost of Rs 153 crore in Q4 FY24, a notable turnaround from a Rs 234 crore loss in the same period the previous year. Management has also pointed to improved contribution margins across business segments.
In a recent investor update, Paytm highlighted robust growth in merchant payments, lending, advertising, and financial services. Its lending arm, in particular, showed strong traction.
With Q1 earnings just around the corner, analysts say that continued profitability and margin improvement will be critical to sustain investor interest and determine the stock's future trajectory.
Paytm Result Q1 Expectations
Paytm is expected to post a net profit of Rs 18.9 crore for the quarter ended June 2025 (Q1FY26), a sharp turnaround from a net loss of Rs 839.6 crore in the year-ago period, according to estimates by JM Financial. In the previous quarter (Q4FY25), the company had reported a net loss of Rs 544.6 crore.
Motilal Oswal Financial Services (MOFSL) also projects a net profit for the quarter, albeit at a more modest Rs 2 crore.
On a consolidated basis, Paytm's revenue in Q1FY26 is projected to rise 27% year-on-year to Rs 1,910.9 crore, from Rs 1,501 crore in Q1FY25, primarily supported by strong traction in its payments and financial services verticals, JM Financial noted. However, sequential revenue growth is likely to remain flat.
The contribution margin is estimated to decline by 67 basis points quarter-on-quarter due to a growing share of financial services—particularly from merchant loans via the Default Loss Guarantee (DLG) model, which carries higher take rates. Still, better operating leverage, especially lower employee costs, is expected to keep the company Adjusted EBITDA positive, with an estimated margin of 1.1%, according to JM Financial.
Analysts at Yes Securities anticipate Paytm's revenue from Payment Services (excluding UPI incentives) to grow 6% quarter-on-quarter and 21% year-on-year. The Financial Services and Others segment is expected to see a 10% QoQ revenue increase.
Loan disbursals during the quarter are likely to grow 8% sequentially and 23% annually, led primarily by merchant loans, with a notably reduced share of DLG-backed loans. Meanwhile, personal loan disbursements are expected to remain tepid due to tightened norms around unsecured lending.
Key Triggers to Watch
Stock Performance
Paytm shares have seen strong gains recently. The stock has rallied 19% in the past month, 17% in three months, and 23% over six months. On a year-to-date basis, it is up 5%, and over the past year, it has delivered multibagger returns of 122%.
At 11:40 AM on Monday, Paytm shares were trading 2.92% higher at Rs 1,048 on the BSE.
tags :
paytm
view comments
Location :
New Delhi, India, India
First Published:
July 22, 2025, 12:26 IST
News business » markets Paytm Soars 122% In A Year, Still Lags IPO Price By 53%; Will Q1 Results Push Paytm Higher?
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
8 minutes ago
- Business Standard
India's net GST revenue rises 1.7% to ₹1.68 trillion in July; refunds surge
India's net revenues from goods and services tax (GST) grew by a marginal 1.7 per cent in July to ₹1.68 trillion, thanks largely to a sharp spike in refunds even as gross collections from the indirect tax were up 7.5 per cent at almost ₹ 1.96 lakh crore. July's net GST kitty growth marks the slowest pace since last February from when disaggregated data on gross and net GST collections is available. In June, net GST revenues were up 3.3 per cent. Net revenues from domestic transactions, in fact, contracted 0.2 per cent in July, even though gross domestic revenues were up 6.7 per cent, as refunds for domestic transactions more than doubled to nearly ₹17,000 crore from under ₹8,000 crore in July 2024. GST refunds to exporters grew at a slower pace of 20 per cent and added up to a little over ₹10,000 crore, so net revenues from imports were up 7.5 per cent at ₹42,548 crore. Gross revenues from imports rose 9.7 per cent prior to refunds, to touch nearly ₹53,000 crore. 'Higher refunds on domestic supplies could be from excess tax payments, inverted duty structures, and other adjustments. The increased refunds should aid cash flows for businesses,' observed Abhishek Jain, indirect tax head and partner at KPMG. Sequentially, July's net GST collections, for transactions undertaken in June, were nearly 6 per cent higher than from ₹1.59 trillion reported in June. In May and April, the net GST receipts were registered at ₹1.73 trillion and ₹2.09 trillion respectively. In the first four months of financial year 2025-26, net GST revenues are up 8.4 per cent at ₹7.11 trillion, with domestic revenues rising 6.1 per cent to ₹5.6 trillion and import revenues surging 18.1 per cent to almost Rs. 1.51 trillion. Gross GST revenues, before effecting refunds, are up 10.7 per cent to ₹8.18 trillion, while refunds have risen 29 per cent to about ₹1.07 trillion. 'The growth in net monthly collection is only 1.7 per cent as against YTD (year-to-date) growth of 8.4 per cent, though partly attributed to significant increase in refunds,' said Pratik Jain, partner with Price Waterhouse & Co LLP. 'After a tepid growth in the previous month as well, the GST Council may like to discuss the possible measures to augment the revenues in the next meeting. With the GST Compensation Cess going away, the states may also be a bit more concerned about the slowdown in GST collections,' Jain remarked. MS Mani, partner at Deloitte India noted that though there has been a focus on domestic manufacturing and import substitution, the GST revenue numbers indicate that the gross GST domestic revenue risen only 9 per cent so far this year, while import revenues have risen 16 per cent. The spike in refunds augurs well for businesses as it signals quicker processing by the tax authorities, he said. Mani also pointed to the weak growth in revenues amongst large producing and consuming states — from 2 per cent for Delhi, 3 per cent for Gujarat, 4 per cent for Rajasthan, 6 per cent for Maharashtra, 7 per cent for Karnataka and Uttar Pradesh, and 8 per cent for Tamil Nadu. The state-wise data shows smaller states and Union Territories like Tripura (41 per cent), Andaman and Nicobar Islands (31 per cent), and Meghalaya (26 per cent) posted over 25 per cent growth in July. , Uttar Pradesh (7 per cent) reported single digit growth. Mizoram, Manipur and Lakshdweep clocked contractions of 21 per cent, 36 per cent and 52 per cent, respectively, as did Jammu and Kashmir (-5 per cent), Chhatisgarh (-4 per cent), and Jharkhand (-3 per cent).
Time of India
15 minutes ago
- Time of India
Retd ACP duped of Rs 94L by ‘fake' investment firm
Berhampur: A retired assistant commissioner of police (ACP) from New Delhi and his family members were allegedly duped of around Rs 94 lakh after they invested in a private firm in silk city two years ago, which turned out to be fake. A case was registered against the firm's owner at Baidyanathpur police station on Thursday after K S N Subudhi, the retired ACP, filed a complaint. Subudhi, a resident of Ganesh Nagar here, invested around Rs 50 lakh in Nov 2023 after discussing it with his relatives, including his son, who had already invested Rs 43.99 lakh in the firm in 2022. Before investing the money he received after retirement, Subudhi visited the firm's office in Jyoti Nagar, and held a discussion with the owner. The firm's owner told Subudhi that they followed all the guidelines of Reserve Bank of India (RBI) and conducted financial transactions with several banks. He also requested Subudhi to invest in the company to earn a commission. Immediately after his investment, Subudhi started receiving a weekly commission after the deduction of TDS for a few weeks. But the firm suddenly stopped paying commission, citing bank problems, and assured him that payments would resume after the issue was resolved. The accused assured Subudhi that all the deposits were safe. From Jan last year, Subudhi could not reach him on phone. The firm's owner also did not respond to his messages requesting the return of the money. After some days, Subudhi learned that the accused had fled to an unknown destination, siphoning off the money of all investors. As there was no response to his calls and messages, Subudhi realised that the firm's owner had cheated him and his family members of their hard-earned money, leading him to lodge a police complaint. SP (Berhampur) Saravana Vivek M said that earlier they had registered at least five cheating cases against the accused in different police stations. In one case, one of his associates was arrested. Several attempts have been made to arrest him, but he managed to escape. "Search efforts have been intensified to nab the accused," he added.
Time of India
16 minutes ago
- Time of India
Delhi zoo may increase ticket prices to 100
New Delhi: The Delhi zoo is considering increasing its ticket prices from Rs 80 to Rs 100 as part of modernisation efforts and also align with other zoos in India. Officials stated that a final decision has yet to be made. The most recent ticket price hike occurred in 2021 when the entry fee was doubled from Rs 40 to Rs 80 following the zoo's reopening after the Covid-19 pandemic. Prior to that, tickets were raised in 2013 from Rs 20 to Rs 40. The Delhi zoo currently attracts between 8,000 to 10,000 visitors on weekends and 4,000 to 6,000 on weekdays. "In several states and countries across the world, the average ticket price per adult is over Rs 100. In the recent meeting, a discussion was held regarding a possible hike, which may see ticket charges increase from Rs 80 to 100," a zoo official said. The official added that the file is yet to be sent to the ministry and that only after due approval will the charges be revised. You Can Also Check: Delhi AQI | Weather in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi If approved, adult tickets will cost Rs 100 and Rs 50 for children. TNN
