One 97 Communications Ltd. (IN:PAYTM)
:PAYTM
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One 97 Communications Ltd.
(PAYTM)
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Rating:58Neutral
Price Target:
₹1,247.00
▲(6.12% Upside)
Action:Reiterated
Date:05/08/26
The score is driven by a strong balance sheet and improving profitability, but is held back materially by weak cash conversion and very negative free cash flow. Technicals are supportive, while valuation is stretched (high P/E), limiting upside unless cash flows improve.
Positive Factors
Strong balance sheet and low leverage
Very low leverage and a sizable equity base provide durable financial flexibility. Over a 2-6 month horizon this reduces refinancing and solvency risk, supports continued investment in product and merchant tools, and cushions execution missteps while management scales monetization.
Negative Factors
Very weak cash generation and deeply negative FCF
Severely negative free cash flow despite reported profitability is a durable risk. Large cash burn constrains strategic optionality, may force capital raises or slower investment, and means reported earnings are not yet translating into internally generated cash to fund growth or buffer downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet and low leverage
Very low leverage and a sizable equity base provide durable financial flexibility. Over a 2-6 month horizon this reduces refinancing and solvency risk, supports continued investment in product and merchant tools, and cushions execution missteps while management scales monetization.
Read all positive factors
One 97 Communications Ltd. (PAYTM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹721.80B
Dividend YieldN/A
Average Volume (3M)133.84K
Price to Earnings (P/E)129.8
Beta (1Y)1.51
Revenue Growth22.26%
EPS GrowthN/A
CountryIN
Employees43,960
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-9.49
Shares Outstanding640,180,200
10 Day Avg. Volume178,675
30 Day Avg. Volume133,839
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)3.82
Price to Sales (P/S)7.26
P/FCF Ratio-7.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,317.33Price Target Upside12.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)18.97
Revenue Forecast (FY)₹101.51B
One 97 Communications Ltd. Business Overview & Revenue Model
Company Description
One97 Communications Limited provides payment, commerce and cloud, and financial services to consumers and merchants in India. The company provides payment and financial services, which primarily includes payment facilitator services, facilitation...
How the Company Makes Money
Paytm primarily earns revenue by monetizing its large base of consumers and merchants across payments, commerce, and financial services distribution. Key revenue streams include: (1) Payments and merchant services: fees and charges associated with...
One 97 Communications Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
86
Very Positive
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.58B | 84.37B | 67.41B | 98.70B | 79.04B | 49.63B |
| Gross Profit | 26.38B | 24.56B | 16.17B | 29.54B | 20.25B | -7.23B |
| EBITDA | 487.00M | 11.68B | 438.00M | -6.30B | -12.34B | -20.98B |
| Net Income | -6.04B | 5.53B | -6.59B | -14.17B | -17.76B | -23.93B |
Balance Sheet | ||||||
| Total Assets | 225.37B | 239.15B | 214.48B | 171.39B | 179.66B | 179.92B |
| Cash, Cash Equivalents and Short-Term Investments | 129.29B | 145.91B | 106.81B | 75.80B | 81.60B | 46.47B |
| Total Debt | 2.74B | 1.72B | 1.60B | 1.77B | 2.23B | 2.21B |
| Total Liabilities | 72.27B | 78.87B | 64.51B | 38.41B | 49.73B | 38.62B |
| Stockholders Equity | 153.40B | 160.26B | 150.27B | 133.27B | 130.16B | 141.52B |
Cash Flow | ||||||
| Free Cash Flow | -1.58B | -86.71B | -4.43B | -1.71B | -2.90B | -17.43B |
| Operating Cash Flow | 440.00M | 90.00M | -1.21B | 6.51B | 4.16B | -12.36B |
| Investing Cash Flow | -3.73B | 9.52B | -20.43B | 3.18B | 26.25B | -54.89B |
| Financing Cash Flow | -240.00M | -350.00M | -527.00M | -221.00M | -11.12B | 80.53B |
One 97 Communications Ltd. Technical Analysis
Negative
1175.05
Price Trends
1100.51
Positive
1144.34
Negative
1197.54
Negative
Market Momentum
1.33
Positive
48.57
Neutral
48.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAYTM, the sentiment is Negative. The current price of 1175.05 is above the 20-day moving average (MA) of 1133.36, above the 50-day MA of 1100.51, and below the 200-day MA of 1197.54, indicating a neutral trend. The MACD of 1.33 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PAYTM.
One 97 Communications Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ₹69.37B | 13.43 | ― | 3.28% | 9.68% | 1.75% | |
66 Neutral | ₹48.93B | 22.25 | ― | 0.27% | 90.29% | 6.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ₹44.71B | 20.43 | ― | 0.51% | 20.30% | 12.16% | |
59 Neutral | ₹28.87B | 20.44 | ― | ― | 46.32% | 47.80% | |
58 Neutral | ₹721.80B | 129.82 | ― | ― | 22.26% | ― |
* Technology Sector Average
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One 97 Communications Ltd. Corporate Events
Paytm Parent Sets Board Meet and Earnings Call for FY26 Results
Apr 28, 2026
One 97 Communications Ltd., which runs the Paytm digital payments and financial services platform, is a major player in India’s fintech ecosystem, providing mobile payments and related services to consumers and merchants nationwide. The comp...
Paytm to Wind Up Payments Bank After RBI Licence Cancellation, Says Core Business Unaffected
Apr 25, 2026
One 97 Communications has announced that Paytm Payments Bank Limited, its associate entity, will undergo voluntary winding up following the Reserve Bank of India’s cancellation of the bank’s licence with effect from April 24, 2026. Onc...
Paytm Parent Converts ₹197 Crore Game Unit Loan to Equity, Backs Loan Distribution With ₹90 Crore Guarantee
Apr 16, 2026
One 97 Communications has approved the conversion of about ₹197 crore of loans and accrued interest to its step-down subsidiary First Games Technology into 19.68 crore equity shares at par, increasing its effective stake from 55% to 82.6% on...
Paytm boosts stake in gaming subsidiary, okays ₹90 crore loss guarantee for partner loans
Apr 16, 2026
One 97 Communications has approved the conversion of about ₹197 crore of loans and unpaid interest to its step-down subsidiary First Games Technology into equity, issuing 19.67 crore new shares at par value and lifting its effective stake fr...
Paytm Expands Southeast Asia Footprint With New Indonesian Subsidiary
Apr 10, 2026
One 97 Communications has expanded its international footprint with the incorporation of PT Paytm Indonesia Teknologi as a wholly owned step-down subsidiary in Indonesia. The new entity was set up jointly by Paytm Cloud Technologies and Paytm Sing...
Paytm marginally increases share capital after ESOP-based allotment
Apr 1, 2026
One 97 Communications Ltd. has allotted 63,995 new equity shares to eligible employees following the exercise of vested stock options under its 2019 and 2008 employee stock option schemes. The shares, with a face value of ₹1 each and an exer...
One 97 Says Gaming Arm Gets ₹142 Crore Loan Waiver With No Hit to Finances
Mar 27, 2026
One 97 Communications Ltd. disclosed that its step-down subsidiary, First Games Technology Pvt. Ltd., has received a loan waiver of about ₹142 crore, including accrued interest, from shareholder AGTech Media Holdings Ltd. The waiver follows ...
Paytm sees immaterial impact as NPCI cuts RuPay credit card UPI app fees
Mar 11, 2026
One 97 Communications Ltd said the National Payments Corporation of India has cut TPAP and payer PSP fees on RuPay credit card transactions made via UPI, reducing app-side revenue from consumer payments but leaving merchant acquiring income untouc...
Paytm Subsidiary Secures Renewal of IRDAI Insurance Broking Licence
Feb 10, 2026
One 97 Communications Ltd., operator of the Paytm digital payments and financial services platform, also runs Paytm Insurance Broking Private Limited as a wholly owned subsidiary engaged in distributing life and general insurance products. The com...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.