Paytm shares drop nearly 3% post Q1 earnings announcement

New Delhi: Shares of fintech firm One97 Communications, which owns the Paytm brand, declined nearly 3 per cent on Wednesday morning trade largely due to profit-taking in the counter.

The stock dropped 2.62 per cent to Rs 1,025 on the BSE.

At the NSE, it went lower by 2.46 per cent to Rs 1,025.10.

One97 Communications on Tuesday reported its first-ever consolidated net profit at Rs 122.5 crore in the quarter ended June 2025, mainly on account of cost optimisation and an increase in payment revenue.

Paytm had posted a net loss of Rs 840 crore in the year-ago period.

"Q1 results of Eternal and Paytm indicate steady growth potential of the digital stocks which have a long runway of growth," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

"EBITDA and PAT turned profitable at Rs 72 crore and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income," Paytm said in a statement.

Paytm Founder and CEO Vijay Shekhar Sharma said that the company has filtered out words related to adjustments under various heads.

"This is the first quarter where we have pruned out every word which included EBITDA (operational profit) before ESOP, PAT (profit after tax) before ESOP or anything before ESOP. Next quarter onward, we will stop giving the ESOP line. It will be only employee cost. We are maturing towards absolute complete employee cost, including EBITDA or PAT, where the ESOP cost is the cost of the management. No more adjusting anything," he said.

Paytm earlier issued profitability targets after complex adjustments.