Paytm Share Price Nosedives, Can It Rebound from Here?

Paytm Q1 FY26 Results Preview: Analysts Expect Revenue and Profit Growth

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.

Disha Rojhe