June 12, 2025: One 97 Communications Ltd, the parent company of Paytm, saw its stock tumble 7.51% today, closing at ₹888.35. This sharp drop ranked Paytm among the top losers in the NIFTY MIDCAP 150 index, sparking concerns over its financial trajectory.
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📉 Market Reaction
The sell-off comes in response to a mixed financial picture for FY2025. Despite improved annual losses compared to previous years, the company’s Q4 FY25 results revealed a deeper net loss of ₹544.3 crore and negative earnings per share (EPS) of ₹8.47, raising fresh doubts about profitability and operational efficiency.
📊 Quarterly Financial Highlights (Consolidated)
- Q4 FY25 Revenue: ₹1,911.5 crore
- Net Loss: ₹544.3 crore
- EPS: -₹8.47
- Notable Spike: Q2 FY25 showed a rare net profit of ₹925.7 crore — a sharp contrast to surrounding quarters.
📅 Annual Financial Summary
| Year | Revenue (Cr) | Net Profit (Cr) | EPS (₹) | ROE (%) |
|---|---|---|---|---|
| FY2021 | ₹2,802.4 | -₹1,627.0 | -₹281.16 | -25.95 |
| FY2022 | ₹4,974.2 | -₹2,350.5 | -₹38.00 | -16.90 |
| FY2023 | ₹7,990.3 | -₹1,764.0 | -₹27.00 | -13.64 |
| FY2024 | ₹9,977.8 | -₹1,384.7 | -₹22.00 | -10.63 |
| FY2025 | ₹6,900.4 | -₹665.7 | -₹10.35 | -4.38 |
Despite an improvement in the bottom line over the years, the fall in FY25 revenue compared to FY24 is a red flag for investors.
💰 Cash Flow & Balance Sheet Snapshot
- Cash from Operations (FY25): ₹38 crore (down from ₹225 crore in FY24)
- Investing Outflow (FY25): -₹1,934 crore
- Share Capital: Stable at ₹63 crore
- Reserves & Surplus: Rose to ₹12,810 crore in FY25
- Debt to Equity: 0.00 — debt-free balance sheet
📈 Valuation Metrics
- P/E Ratio (FY25): -63.23 (Negative due to losses)
- Book Value per Share: ₹201.79
- Market Sentiment: Very Bullish (as of June 12, 2025, via Moneycontrol)
🧾 Takeaway
While Paytm’s improving annual net loss and zero debt position show resilience, volatile quarterly earnings and a sharp drop in FY25 revenue have shaken investor confidence. The current bearish trading reflects market unease, despite analysts signaling longer-term optimism.