Shares of One97 Communications, the parent company of fintech major Paytm, continued to decline for the fourth consecutive session on January 13. The shares fell to Rs 796.1, marking a decline of over 6 percent.
Earlier, UBS had released a report citing NPCI data, which mentioned that Paytm did not gain any UPI market share in December.
In October, Paytm received approval to add customers. Nevertheless, its share of the UPI market almost halved, falling from 10 per cent at the start of 2024 to 5.5 per cent by the end of the year.
During the October-November period, Paytm’s market share remained stable at 5.5 per cent. Paytm’s monthly transacting users (MTUs) have also declined by about 100 million, from 168 million at the start of 2024 to 68 million by the end of September 2024.
In a recent note, Mirae Asset Capital Markets has estimated that Paytm will achieve breakeven at the net profit level by Q4FY26, driven by higher contribution of financial services to its revenue. For the upcoming quarter, analysts at Motilal Oswal have forecast a 10 per cent quarter-on-quarter (QoQ) growth in Paytm’s gross merchandise value (GMV) to Rs 4.9 lakh crore in Q3FY25.
They also expect an 8 per cent QoQ growth in revenue from operations to Rs 1,800 crore and a 14 per cent QoQ growth in contribution profit to Rs 1,012 crore in Q3FY25. Out of a total of 17 brokerage firms, six have recommended buying Paytm, six have recommended holding it, and five have recommended selling it.
