Paytm Sales Drop 36%, Shares Fall Amid Regulatory Challenges

Paytm's parent company, One97 Communication Limited, saw its shares decline by around 6% following the release of its third-quarter results, which revealed a net loss of Rs 208.3 crore, albeit an improvement from last year. Revenue decreased by 36% to Rs 18.3 billion, falling short of analysts' expectations. The company's banking operations have been severely impacted due to regulatory actions that forced the closure of Paytm Payments Bank, leading to a need for new lender partnerships. Despite the challenges, analysts from various brokerages expressed cautious optimism about potential EBITDA profitability by FY27, with some maintaining 'BUY' ratings based on long-term growth prospects. Paytm's average monthly transacting users fell slightly to 70 million, and the company reported a 16% increase in merchant loans issued during the quarter. Overall, while there are signs of improvement, the company continues to navigate significant operational hurdles resulting from regulatory scrutiny.