Paytm Q4 Results Preview: Will The Fintech Player Turn Profitable? Check Estimates & Targets

Paytm Q4 results preview: One 97 Communications, nan genitor institution of fintech level Paytm, is group to denote its results for nan 4th and financial twelvemonth connected Tuesday, May 06, 2025. Analysts search nan banal are expecting nan financial services subordinate to move astatine slightest break-even successful Q4FY25.

Analysts search nan banal are expecting Paytm to study a degrowth successful revenues connected a year-on-year (YoY) basis, while income maturation connected a quarter-on-quarter (QoQ) is seen healthy. Some analysts are expecting it to move operationally profitable and moreover connected a net-net ground arsenic good connected nan backmost of crisp emergence successful nan contributing margins.

YES Securities is penciling Paytm to timepiece a gross of Rs 2,198.9 crore, up 20.3 per cent QoQ but down 3 per cent YoY. Ebitda is seen astatine Rs 15.2 crore, while nett profit whitethorn travel successful astatine 36 crore arsenic per its estimates. It is expecting an Ebitda separator of 10 per cent, an betterment of 1200 bps QoQ.

"We presume 6 per cent QoQ maturation successful Payments Services Revenue and 30 per cent QoQ maturation successful Financial Services and Others and get astatine an wide maturation successful Revenue from operations of 20 per cent QoQ, aft factoring successful UPI incentive. We besides forecast Payment Processing Charges (PPC) arsenic a proportionality of Payments Revenue to beryllium astatine 51 per cent," YES Securities said.

Ahead of its earnings, shares of Paytm dropped astir 4 per cent to Rs 834.25 to Tuesday, commanding a full marketplace capitalization somewhat supra Rs 53,000 crore. The banal has collapsed much than 21 per cent from its 52-week precocious astatine Rs 1,063, deed successful December 2021. It is still 175 per cent supra its 52-week debased astatine Rs 310, deed successful May 2024.

JM Financial is expecting Paytm to study a gross of Rs 1,974.6 crore, up 8 per QoQ but down 12.9 per cent YoY. Ebitda nonaccomplishment is penciled to beryllium narrowed astatine Rs 64.7 crore, while it expects Paytm to study a nett profit of Rs 4.5 crore. JM has a 'buy' standing connected nan banal pinch a target value of Rs 1,000.

"Paytm's payments business is expected to broadly beryllium level sequentially, while return rates are expected to diminution owed to expanding operation of UPI. Financial services business is apt to beryllium driven by merchant loans, while individual loans will beryllium a drag," said JM Financial.

"We estimate 1 per cent QoQ maturation successful GMV successful 4QFY25. Revenue from operations is expected to summation by 15 per cent QoQ to Rs 2,090 crore, while publication profit is apt to turn 23 per cent QoQ to Rs 1,180 crore. Contribution separator is frankincense expected to amended to 56.3 per cent. We expect Paytm to study adjusted Ebitda breakeven successful 4QFY25," Motilal Oswal said.

Published on: May 6, 2025 11:17 AM IST