Paytm’s turnaround was driven by cost cuts, a sharper focus on core payments, and gains in financial services revenue, while regulatory changes eased with the exit of Chinese investors.
Shares of One97 Communications, the parent company of Paytm, have gained traction on the analysts’ radar, with a 13% rally in the last month.
SEBI-registered analyst Mayank Singh Chandel flagged that the fintech firm reported its first-ever profit from operations in the first quarter (Q1, marking a sharp turnaround from heavy losses just 18 months ago.
And in a significant ownership change, Chinese investor Antfin sold its entire stake in August 2025, completing the exit of all Chinese shareholders, pointing to a move expected to ease regulatory compliance in India.
While Chandel sees bullish potential for Paytm going ahead, he urges caution as the stock faces technical resistance near ₹1,150.
Technical Outlook
On its technical charts, he noted that Paytm’s stock has been in a long-term accumulation range and is currently trading in the resistance zone between ₹1,000 and ₹1,150.
Chandel said aggressive traders could consider entering on a breakout above the flag pattern with strong volume, while conservative traders may prefer to wait for a decisive break above the ₹1,150 level.
He added that a further resistance exists near ₹1,500, formed after the gap-down opening on Dec. 15, 2021.
Q1 Earnings Snapshot
Revenue rose 28% year-on-year to ₹1,918 crore, while profit after tax stood at ₹123 crore compared with a loss of ₹840 crore in the same quarter last year. EBITDA turned positive at ₹72 crore, with the contribution margin improving from 50% to 60%.
The recovery followed a difficult period starting in January 2024, when the Reserve Bank of India imposed strict rules on Paytm Payments Bank, triggering a 47% revenue drop over six months.
The company responded by cutting 10% of its workforce, saving ₹650 crore, exiting non-core businesses, and shifting its focus from acquiring new customers to retaining existing ones.
Five operational shifts drove the comeback: deploying AI for fraud prevention and customer retention, repairing devices instead of replacing them to cut costs, shifting loan models to repeat borrowers without upfront deposits, growing merchant subscriptions for recurring income, and cutting capital expenses by 61%, which lifted cash reserves to ₹18,872 crore.
By segment, payment services revenue grew 18% to ₹1,144 crore, and financial services revenue doubled to ₹561 crore on stronger merchant lending. Meanwhile, marketing and commerce revenue declined 23% due to the exit from entertainment ticketing.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘neutral’ amid ‘low’ message volume.
Paytm’s stock has risen 8.4% so far in 2025.
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