Paytm Shares Surge Amid Positive Q1 FY2025 Financial Results

One 97 Communications, Paytm's parent company, sees stock prices rise by 1.66% in a bearish market after announcing a reduction in operational losses for Q1 FY2025. While competitors like Zomato and PB Fintech faced declines, Paytm's financial performance and strategic moves indicate resilience and growth.

In a broader trend where stock prices of domestic technology giants are down by 2-2.7 per cent, One 97 Communications, the parent company of Paytm, witnessed an upward swing after announcing its Q1 FY2025 financial results. Paytm's share price soared past the Rs 451 mark, reflecting a 1.66 per cent rise during the day's trading session. Shares closed at Rs 445.30 apiece on Thursday.

Meanwhile, technology peers such as Zomato and PB Fintech saw declines of nearly 2 per cent to Rs 216 and almost 3 per cent to Rs 1,412 apiece, respectively. Paytm announced its financials on Friday, reporting an operating revenue of Rs 1,502 crore and an EBITDA loss of Rs 792 crore. The net loss for the quarter stood at Rs 840 crore.

The full financial impact of recent disruptions became clear in Q1 FY2025 for the company. Despite this, Paytm projected revenue and profitability improvements driven by growth in merchant payment metrics, accelerated merchant reactivation, and an expanding merchant base, coupled with a focus on cost optimization. New merchant sign-ups and increased daily GMV have rebounded to January levels, boosting the merchant subscriber count to 1.09 crore. The customer base has stabilized at 7.8 crore with rising GMV per customer. The company maintains a robust balance sheet with Rs 8,108 crore in cash reserves.

(With inputs from agencies.)