Latest news with #One97CommunicationsLtd.
India Today
09-05-2025
- Business
- India Today
YES Securities raises Paytm target to Rs 975 on profitability turnaround and surge in merchant lending
In its Q4FY25 result note on Paytm (One97 Communications Ltd.), YES Securities has maintained an ADD rating and raised the stock's target price to Rs 975 from Rs 915, citing improvements in contribution margin, operating efficiency, and lending momentum. The brokerage noted meaningful sequential gains across key financial and operating metrics, even as regulatory incentives like UPI subsidies moderated grew 4.6% quarter-on-quarter to Rs 1,911 crore, with payment services revenue up 4.3% QoQ and financial services revenue up 8.6% QoQ, according to the report. Despite a sharp drop in UPI incentives (from Rs 288 crore in Q4FY24 to Rs 70 crore in Q4FY25), contribution profit rose 11.8% QoQ to Rs 1,072 crore, resulting in a contribution margin of 56.1%, up by 363 basis rise in contribution margin was driven by improvement in net payment margin and cost optimisation, especially in processing charges,' the analysts stated. The report highlighted that payment processing charges declined 8.8% QoQ, benefiting from favourable mix, seasonality, and partner rate adjustments. These efficiencies, combined with stable employee and platform costs, led to EBITDA before ESOP turning positive at 81 crore, compared to a loss of Rs 40 crore in the previous quarter. EBITDA margin improved by 642 bps sequentially, reaching 4.2%.YES Securities also noted that marketing, employee benefits, and software costs were largely flat or lower, indicating tight cost lending, merchant loan disbursals grew 12.6% QoQ to Rs 4,320 crore, with 50–60% of disbursements now under the Default Loss Guarantee (DLG) model. The report observed that nearly half of the merchant loans were repeat transactions, suggesting strengthening borrower behaviour and product DLG model is gaining momentum with lenders, and the higher-margin lending mix is helping revenue stability,' the report merchant subscription base rose 6% QoQ to 12.4 million, while the company continued to expand its device-led monetisation footprint across offline Securities reaffirmed Paytm's medium-term guidance of 30–35% revenue growth and 15–20% EBITDA margin, stating that future margin expansion is likely as ESOP-related expenses taper and monetisation brokerage further noted that ongoing discussions around MDR on UPI for large merchants could result in 5–8 basis points upside in net margin if implemented.'We maintain ADD rating on Paytm with a revised target price of Rs 975, valuing it at 5.4x FY27 Price-to-Sales,' the report concluded.
Mint
07-05-2025
- Business
- Mint
Paytm share price to remain in focus after Q4 results 2025. Do you own?
One97 Communications Ltd., the parent company of payments aggregator Paytm, share price will remain in focus in Wednesday's trading session after the company reported financial results for the quarter ending on March 31, 2025 on May 6. Paytm stock ended Wednesday's trading session in red after the announcement, fell over 5.72 per cent to close at ₹ 816.50 apiece. The payment aggregator's stock has delivered multibagger returns by soaring over 31,919.61 per cent in five years. One 97 Communications, the company behind the fintech platform Paytm, reported a consolidated net loss of ₹ 540 crore for Q4FY25, compared to a loss of ₹ 550 crore in the same period last year. This loss is attributable to the parent company's shareholders. The revenue from operations for the quarter ending in March was ₹ 1,912 crore, marking a 16% decline compared to ₹ 2,267 crore in the same quarter of the previous financial year. The loss increased sequentially from ₹ 208 crore in Q3FY25. However, revenue for the January-March quarter of FY25 saw a sequential rise of nearly 5%, compared to ₹ 1,828 crore in the October-December quarter of FY25. 'In Q4 FY2025, we achieved operating revenue of ₹ 1,911 Cr, with an increase in revenues from distribution of financial services and ₹ 70 crore of UPI incentive for FY2025. Excluding the UPI incentive, revenue increased 1% QoQ, despite the festive season surge in payments volume in the previous quarter,' the company said. Paytm's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) before ESOP increased to ₹ 81 crore, marking a quarter-on-quarter improvement of ₹ 121 crore, according to the company's filing. The UPI acquiring incentive was recorded at ₹ 70 crore, and the company's cash balance amounted to ₹ 12,809 crore. "Payment processing margin, excluding UPI incentive, continues to be above 3 bps, in line with our guidance. UPI incentive revenue was lower this year on account of lower incentive from the Government. The Industry expects MDR on UPI for large merchants to be allowed in the near future, which will result in incremental monetisation opportunities. We will update our payment processing margin guidance once we have clarity on MDR on UPI," it added. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Hans India
25-04-2025
- Business
- Hans India
Win 100g Gold with Paytm's ‘Golden Rush' During Akshaya Tritiya
Paytm's One97 Communications Ltd. has rolled out its 'Golden Rush' campaign to mark Akshaya Tritiya, encouraging digital gold savings by offering reward points and a chance to win from a 100-gram gold prize pool. Customers who invest at least Rs 500 in Paytm Gold between April 25 and May 5 will receive reward points equal to 5 per cent of each transaction. These points will be tracked on a campaign leaderboard, with top savers sharing the total prize pool of 100 grams of gold. Paytm Gold provides a mechanism to acquire 24-karat, 99.99 per cent purity gold sourced from MMTC-PAMP, stored in insured vaults under the oversight of the London Bullion Market Association. Users may opt for a one-time purchase or enroll in the Daily Gold SIP, starting at Rs 9 per day, to build digital gold savings through regular small investments. To join the Golden Rush, users should open the Paytm app and search for 'Paytm Gold' or 'Daily Gold SIP.' After entering the investment amount, they can confirm the live gold rate, inclusive of GST, and complete payment via UPI, net banking or debit card. Once processed, gold holdings will update instantly in the user's Paytm account, with SMS and email confirmations sent to the investor. The campaign aligns with the Akshaya Tritiya tradition of investing in gold and aims to foster disciplined digital gold saving habits among users ahead of weddings, festivals and long-term wealth planning.
