Paytm Shares Fall Despite Strong Q3 Results

Shares of Paytm fell over 4% after the company's parent, One 97 Communications Ltd, posted a third consecutive quarter of profit on Thursday, with the stock trading at Rs 1138.30 apiece.

Paytm reported a profit of Rs 225 crore. The company recorded a 20% year-on-year increase in operating revenue to Rs 2,194 crore. A part of Paytm's payments revenue during the quarter included incentives under the RBI's Payments Infrastructure Development Fund (PIDF) scheme, which was applicable until December 2025. EBITDA improved to Rs 156 crore, while margins stood at 7%.

The company's Gross Merchandise Value (GMV) rose 24% YoY to Rs 6.2 lakh crore, reflecting continued gains in both merchant and consumer payments. Merchant subscriptions reached 1.44 crore, with an addition of 27 lakh devices year-on-year, expanding its recurring revenue base. 

Contribution profit for the quarter stood at Rs 1,249 crore, up 30% YoY, with a contribution margin of 57% due to higher payment processing margins and increased share of distribution of financial services revenue. Paytm ended the quarter with a cash balance of Rs 12,882 crore.

Paytm Q3 Results (Consolidated, QoQ)

• Revenue up 6.5% At Rs 2,194 crore versus Rs 2,061 crore.
• Ebitda up 10.6% At Rs 156 crore versus Rs 141 crore.
• Margin at 7.1% Vs 6.8%.
• Net profit at Rs 225 crore versus Rs 21 crore 

Paytm Share Price Today
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The scrip fell as much as 4.49% to Rs 1138.30 apiece. This compares to a 0.46% decline in the NSE Nifty 50 Index.

Total traded volume so far in the day stood at 3.11 times its 30-day average. The relative strength index was at 45.95

Out of 21 analysts tracking the company, 14 maintain a 'buy' rating, six recommend a 'hold,' and one recommend 'sell' rating, according to Bloomberg data. The average 12-month consensus price target of Rs 1418.42 implies an upside of 23.8%.

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