Paytm Shares Rise After Q3 Earnings Beat Estimates

The shares of One97 Communications Ltd., rose after the earnings beat estimates despite reporting a net loss for the December fiscal quarter.

The parent company of Paytm, reported a net loss of Rs 208.3 crore for the third quarter of fiscal year 2025, as compared to a profit of Rs 928.3 crore in the previous quarter. However, the loss beat analysts' expectations, with Bloomberg consensus estimates predicting a loss of Rs 332 crore.

The net loss is not a very accurate reflection of the company’s performance, especially as the net profit from the July-September quarter was largely driven by a one-time gain from the sale of its events and movie ticketing business to Zomato Ltd.

Paytm's bottom-line is an improvement over the corresponding quarter last year when Paytm reported a loss of Rs 221.7 crore.

Despite the continued loss, the company's revenue showed positive growth, increasing by 10.1% to Rs 1,828 crore for the quarter, surpassing the expected Rs 1,660 crore.

When factoring out one-time gains, Paytm’s core operations appear to be improving, as its Ebitda loss narrowed to Rs 222 crore, compared to Rs 403 crore in the previous quarter. The company also reported a loss before tax of Rs 203 crore, improving from Rs 411 crore in the previous quarter.

Paytm stock rose as much as 2.21% during the day to Rs 920 apiece on the NSE. It was trading 1.35% higher at Rs 912.30 apiece, compared to an 0.29% advance in the benchmark Nifty 50 as of 11:10 a.m.

It has risen 14.10% in the last 12 months. The relative strength index was at 46.63.

Nine out of the 19 analysts tracking the company have a 'buy' rating on the stock, six recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 879.41, implying a upside of 0.4%.