New Delhi, May 7 || Paytm (One97 Communications Limited) has delivered a solid operational turnaround in Q4 FY25, achieving profitability at the EBITDA before ESOP level -- a significant milestone in its path to sustained profits.
To this, leading brokerages have responded positively, raising their price targets and highlighting Paytm’s improving fundamentals, sharp cost control, and expanding merchant ecosystem.
According to Bernstein, which reiterated its Outperform rating, Paytm has "achieved EBITDA breakeven with PAT profitability in sight."
Bernstein has set a price target of Rs 1,100, implying a potential 35 per cent upside. The brokerage attributed a couple of growth drivers leading to EBITDA before ESOP profitability this quarter.
“A combination of stable payment margins and sequential growth in financial services revenue, coupled with a marginal decline/stable expenses line resulted in Paytm turning profitable on EBITDA before ESOP basis,” said the report by the brokerage.
JM Financial echoed this optimism, stating, “Adjusted EBITDA profitability achieved, PAT in focus next quarter”. The firm maintained its ‘Buy’ rating with a raised price target of Rs 1,070.
It cited Paytm’s contribution margin expansion and disciplined expense control as key positives, along with steady growth in merchant loans and improved collection efficiency that are strengthening the company’s financial services business.