One 97 Communications, the company behind Paytm, continued its winning streak for the third day, with shares rising by 8.60% in early trading, surpassing ₹400 after 8 weeks to hit ₹414.
The stock has surged by 33.54% from its lowest point of ₹310 in May’s second week. On Friday, the shares hit the 10% upper circuit limit after a 2% increase in the previous session.
Stock markets recently increased the upper circuit limit for Paytm to 10% after initially lowering it to 5% due to high volatility caused by RBI’s restrictions on Paytm Payments Bank.
Paytm has mentioned a positive trend and solid stabilization in its Unified Payments Interface (UPI) operations. In May, the total UPI transaction value on Paytm’s platform rose to ₹1.24 trillion, boosted by new features like Credit Card on UPI and UPI Lite.
As per ANI, total transactions on the platform stabilized at 1.14 billion in May, solidifying Paytm’s position as the third-largest player by market share since becoming a Third-Party Application Provider (TPAP) in March.
Additionally, thanks to its wide merchant network, Paytm remains at the forefront in peer-to-merchant (P2M) UPI transactions.
In May 2024, UPI reached a milestone by processing nearly 14 billion transactions, marking a significant 49% year-on-year increase, handling transactions valued at ₹20.45 trillion—the highest since its inception in 2016, as per the report.
This increase highlights the increasing favor for digital payments among Indian consumers and businesses. Paytm has shown strong support for UPI and has collaborated with different banks and financial entities like Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank to improve its UPI offerings.
In January, the RBI banned Paytm Payments Bank Limited (PPBL) from receiving deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags, effective March 15, to safeguard customers and merchants.
This move prompted investors to heavily sell the company’s shares in the following months, resulting in a 47% decrease in February, a 7.51% decline in April, and an additional 3.13% drop in May.
In the fourth quarter of the financial year 2023–24, the company’s loss increased to ₹550 crore due to the impact of the RBI’s ban on transactions involving its payments bank. This is in contrast to a loss of ₹167.5 crore in the same period the previous year.
Paytm’s revenue from operations dropped by 2.8 percent to ₹2,267.1 crore in the mentioned quarter, down from ₹2,464.6 crore in the corresponding quarter of FY23.
In the fiscal year ending on March 31, 2024, the company reduced its loss to ₹1,422.4 crore, a decrease from ₹1,776.5 crore in FY23. Paytm’s yearly revenue rose by around 25 percent to ₹9,978 crore for FY24, an increase from ₹7,990.3 crore in FY23.
