One97 Communications Ltd., the parent company of Paytm, has delivered a robust 176.98% return over the past year. However, the stock has dipped 7.5% so far in 2025.
Market sentiment is split: out of 19 analysts tracking the stock, nine recommend buying, seven advise holding, and three suggest selling. The average 12-month consensus price target implies a modest upside of 0.9%.
Aditya Agarwala, head of research and investments at Invest4edu, recommends buying One97 Communications with a target price of Rs 980 and a stop loss of Rs 845.
CLSA, in a recent note, maintained a ‘hold’ rating on Paytm with a target price of Rs 870, signalling a 2% downside risk. The brokerage notes the possibility of the Merchant Discount Rate being reintroduced on UPI person-to-merchant transactions, prompted by a government budget cut for fiscal 2026.
CLSA estimates that the MDR could boost Paytm’s adjusted earnings before interest, taxes, depreciation, and amortisation by 20–50% in fiscals 2027 and 2028. The brokerage expects UPI-P2M industry growth of 18–25% over the next three years and sees MDR reintroduction as a significant potential catalyst for rerating the stock.
Last month, Goldman Sachs acquired a 0.58% stake in One97 Communications for over Rs 300 crore via open market purchases. Meanwhile, Alibaba affiliate Antfin Netherlands Holding BV offloaded 4% of its stake at Rs 826 apiece, raising Rs 2,104 crore in the process.
On the financial front, One97 Communications reported a net loss of Rs 540 crore for the quarter ended March 31, 2025, more than doubling the previous quarter’s loss of Rs 208 crore and far exceeding Bloomberg’s consensus estimate of Rs 177.8-crore loss.
This was driven by an exceptional, non-cash one-time charge of Rs 492 crore related to accelerated Employee Stock Option Plan expenses. Excluding this one-time expense, the net loss narrowed to Rs 23 crore, showing significant operational improvement.
Revenue from operations rose 4.6% sequentially to Rs 1,911 crore. The company’s Ebitda loss also narrowed sharply to Rs 88.6 crore from Rs 222.4 crore in the previous quarter, signalling operational progress despite ongoing challenges.
. Read more on Markets by NDTV Profit.