Paytm Shares Jump 7% After Q4 Results – Here’s What’s Going On

Paytm’s stock saw a big rise of around 7% recently, and it’s got a lot of people talking. This happened right after the company shared its earnings report for the January–March quarter of 2024. Even though the company posted a bigger loss than last year, there’s still a sense of hope among market experts.

What the Numbers Say

In the last three months, Paytm reported a loss of ₹550 crore — that’s more than double what it lost during the same time last year. Its revenue (money it made from services) also dropped by 3% to ₹2,267 crore. This dip was mainly because of issues tied to its Payments Bank business, which was recently hit by restrictions from the Reserve Bank of India.

For the full year, though, the picture looks a bit better. Paytm’s revenue grew by about 25% to ₹9,977 crore, and its yearly loss actually went down a bit, from ₹1,776 crore last year to ₹1,422 crore this year.

The company says the real impact of those banking restrictions will show up more clearly in the results for the next quarter (April to June 2025).

User Growth and Business Expansion

Even with financial challenges, Paytm is still growing in other areas. The number of people using the app every month rose to 96 million — that’s 7% higher than last year. The total money moving through Paytm’s platform (called GMV or Gross Merchandise Value) also shot up by 30%, reaching ₹4.7 lakh crore.

Paytm has been working hard to expand its reach among small businesses too. The number of shops and vendors using Paytm’s card machines and QR codes grew to 10.7 million — that’s nearly 60% more than last year.

To keep its UPI (money transfer) services running smoothly after the bank restrictions, Paytm teamed up with major banks like Axis Bank, SBI, HDFC, and YES Bank. These partnerships will help Paytm continue processing payments without relying on its own bank.

What Analysts Are Saying

Many stock market experts still believe in Paytm’s long-term future, even if things look shaky right now.

• Experts at Goldman Sachs say Paytm could become one of the most profitable tech companies in India by next year.

• Citi Research feels confident too, especially because Paytm’s digital payment and loan businesses are growing fast.

• Motilal Oswal, a financial services company, said that despite losses, Paytm had a decent quarter and showed signs of improvement.

• Macquarie, another global firm, also sees potential and was impressed by higher-than-expected earnings before costs.

All these experts agree on one thing: Paytm’s plans for cutting costs using technology and expanding its financial services could help it bounce back strongly.

What’s Next for Paytm?

Paytm says the recent disruptions are temporary. The company is now focusing on getting its systems in order, working closely with new banking partners, and offering better services. They also plan to keep improving their business by using more automation and artificial intelligence to save money.

While there are still a few bumps in the road, many believe Paytm is making the right moves to recover and grow in the future.