Paytm Share Price Rose 6%, Extends 4-Day Gains

On November 22, 2024, shares of One97 Communications, the parent company of Paytm, traded 6.28% higher at ₹898.45 at 2:30 PM on NSE. The stock added to yesterday’s gain of around 3.86%.

Recent Developments

The rally was driven by an optimistic outlook from a global brokerage, which reiterated confidence in the fintech company’s potential for strong earnings growth under favourable conditions.

Paytm’s positive momentum has been bolstered by recent regulatory changes. The National Payments Corporation of India (NPCI) has permitted the company to resume onboarding new UPI users after nearly nine months of restrictions set by the Reserve Bank of India.

Q2 FY25 Financial Highlights

In Q2FY25, Paytm reported a net profit of ₹930 crore, a sharp contrast to the net loss of ₹290.5 crore in the same period last year. However, this profit surge was primarily attributed to a one-time gain of ₹1,345 crore from selling its movie ticketing business to Zomato.

The company reported operating revenue of ₹1,660 crore, reflecting an 11% quarter-on-quarter growth, while EBITDA improved by ₹388 crore quarter-on-quarter to ₹404 crore. Additionally, EBITDA before ESOP stood at ₹186 crore, showing a quarterly improvement of ₹359 crore.

Shareholding Pattern Update

One 97 Communications has a fully public shareholding structure. As of September 30, 2024, mutual funds held a 7.86% stake in the company, reflecting an increase compared to the previous quarter.

Meanwhile, foreign institutional investors (FIIs) owned 18.02% of the company’s shares during the same period, marking a decline from the last quarter.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.