Paytm Q3 Results Review — Motilal Oswal Retains 'Neutral' Stance On The Stock; Here's Why

Paytm continues to witness an improvement in its business metrics. Disbursements have started to recover and are off the lows of Q1. GMV improves at a steady rate..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.One 97 Communications Ltd. reported a net loss of Rs 2.1 billion, lower than our estimated loss of Rs 3.6 billion due to better revenues and lower indirect and ESOP cost. Revenue from payments rose 6% QoQ to Rs 10 billion, while revenue from financial services grew 34% QoQ to Rs 5 billion, aided by DLG loans, which have better revenues.Total revenue thus grew 10% QoQ to Rs 18.3 billion (largely in line), while gross merchandise value stood at Rs 5.04 trillion (in line, 13% QoQ). Subscription revenue improved owing to an increase in merchants and revenue per merchant, while disbursements rose 6% QoQ from the lows of Q1 (down 64% YoY).Net payment margin grew 5% QoQ (down 35% YoY) to Rs 4.9 billion (10bp of GMV versus 10 bp in Q2 FY25), while contribution margin declined to 52.5% amid higher direct expenses (owing to DLG cost) and higher payment processing charges. We largely maintain our contribution profit estimates. We estimate Paytm to turn Ebitda positive by FY27. We value Paytm at Rs 950, based on 18x FY30E Ebitda discounted to FY26E, which corresponds to 6.1x FY26E sales. We retain Neutral rating on the stock.Click on the attachment to read the full report:.Paytm Q3 Results: Reports Rs 208-Crore Loss But Beats Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Paytm Q3 Results Review — Motilal Oswal Retains 'Neutral' Stance On The Stock; Here's Why

The brokerage estimates Paytm to turn Ebitda positive by FY27.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP