Paytm shares surge 8% after solid Q4 results: Should you buy, sell or hold?

Paytm shares surge 8% after solid Q4 results: Should you buy, sell or hold

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26 Aug, 2025 12:21

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Paytm shares surged over 8 percent on May 7 after the fintech company reported that its net loss has narrowed to Rs 540 crore in Q4 FY25. Several brokerages have issued bullish calls for the stock, adding to the share price rally.

Notably, Paytm is now close to break even as its Rs 540-crore loss included a one-time cost of Rs 522 crore during the quarter under review. The Noida-based company's one-time cost was in relation to the 21 million Employee Stock Options (ESOPs) which were granted to the Managing Director and CEO Vijay Shekhar Sharma.

Paytm also reported EBITDA positive with a surplus of Rs 81 crore during Q4. Its revenue from operations however tumbled 16 percent year-over-year to Rs 1,912 crore.

At 12:30 pm on May 7, shares of One 97 Communications Ltd, the parent of Paytm, were trading 7.5 percent higher at Rs 876 apiece.

Motilal Oswal reiterates 'Neutral' rating with Rs 870 target price

After Paytm's Q4 results were released, Motilal Oswal reiterated its 'neutral' rating on the stock with a target price of Rs 870 apiece. "Paytm reported a year of recovery in business metrics during FY25. Disbursement recovery is well on track, led by healthy disbursements in merchant loans. GMV also demonstrated steady state recovery. Most business metrics continue to improve as recovery progresses. We expect a steady business recovery, leading to a 29% revenue CAGR over FY25-27," the domestic brokerage said.

"We maintain our contribution profit estimates and project PAYTM to turn EBITDA positive by FY27," it added.

JM Financial reiterates 'Buy' rating with Rs 1,070 target price

JM Financial reiterated its 'Buy' rating on the stock, with a target price of Rs 1,070 apiece. The latest target price implies an upside potential of nearly 22 percent from the stock’s current market price.

"Even excluding incentive, company reported 1% sequential growth, despite 4Q being a seasonally weak quarter. While Payments GMV remained flat QoQ, strong growth in Financial Services (via merchant loans) drove the uptick… Management expects Paytm to turn PAT positive next quarter along with multiple growth triggers such as MDR on UPI, return of wallet, etc," the brokerage said.

Emkay Global reiterates 'Buy' rating with Rs 1,050 target price

Emkay Global retained its 'Buy' rating on the stock, with a target price of Rs 1,050. The latest target price implies an upside potential of over 19 percent from the stock’s current market price.

"Though Paytm reduced overall loss in FY25 mainly due to business consolidation and cost optimization, we expect it to turn net profit-positive in FY26 on the back of revenue acceleration from payment as well as the financial services business, higher treasury income on cash balance boosted by recent stake sales, and lower depreciation/ESOP cost," Emkay said.

Jefferies maintains 'Buy' rating with Rs 1,100 target price

Jefferies maintained its 'Buy' rating on the stock, and hiked its target price to Rs 1,100 apiece, according to a note seen by CNBC-TV18 This implies an upside potential of nearly 25 percent from the stock’s current market price.

Bernstein maintains 'Outperform' rating with Rs 1,100 target price

Bernstein has kept an 'Outperform' rating on the stock, with a target price of Rs 1,100 apiece, according to CNBC-TV18.

Dolat Capital Markets sees 36% upside

Dolat Capital Markets set a target price of Rs 1,200 apiece, as per CNBC-TV18. This marks an upside potential of over 36 percent from the stock's current market price.

Also read: Our LIVE blog on Q4 results

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.