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One 97 Communications Ltd. (IN:PAYTM)
:PAYTM
India Market

One 97 Communications Ltd. (PAYTM) AI Stock Analysis

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IN:PAYTM

One 97 Communications Ltd.

(PAYTM)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
₹1,128.00
▼(-12.22% Downside)
The overall stock score is primarily influenced by the company's strong technical indicators, suggesting bullish momentum. However, this is offset by significant challenges in financial performance, particularly profitability and cash flow management, and a high P/E ratio indicating overvaluation. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
Strong Balance Sheet
A strong balance sheet with high equity and low debt enhances financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.
Diverse Revenue Streams
Diverse revenue streams reduce dependency on any single income source, enhancing stability and enabling the company to capitalize on various market opportunities.
Improving Gross Profit Margin
An improving gross profit margin indicates better cost management and pricing power, which can lead to enhanced profitability over time.
Negative Factors
Negative Cash Flow
Negative cash flow indicates cash management issues, which can strain operations and limit the ability to invest in growth opportunities, impacting long-term sustainability.
Declining Revenue Growth
A significant decline in revenue growth suggests challenges in market demand or competitive positioning, potentially affecting the company's ability to expand its market presence.
Ongoing Profitability Challenges
Persistent profitability challenges can hinder reinvestment in the business and limit strategic flexibility, posing risks to long-term growth and shareholder value.

One 97 Communications Ltd. (PAYTM) vs. iShares MSCI India ETF (INDA)

One 97 Communications Ltd. Business Overview & Revenue Model

Company DescriptionOne97 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 of consumer and merchant lending to consumers and merchants, wealth management, etc. It also offers commerce and cloud services, including aggregator for digital products; ticketing business; and providing voice and messaging platforms to the telecom operators, enterprise customers, and other businesses, etc. In addition, the company provides consumers a range of instruments, both third party like cards; net banking and Paytm payment instruments, such as wallet, Paytm postpaid to make online payments for mobile recharge, utility bills, rent, education, wallet top-ups and money transfers using the Paytm app; and make online payments on third party apps and in-store payments through QR codes and devices. Further, it offers mobile banking, lending, insurance, and wealth management for consumers and merchants; merchant services including ability to sell tickets to customers; advertising; and loyalty solutions, such as deals and gift vouchers; and software and cloud services to enterprises, telecom companies, and digital and fintech platforms to track and enhance customer engagement, build payment systems, and unlock customer insights. Additionally, the company provides lifestyle destination for consumers to avail services, such as travel and entertainment ticketing, gaming, and more. One97 Communications Limited was incorporated in 2000 and is headquartered in Noida, India.
How the Company Makes MoneyPaytm generates revenue through multiple streams, primarily from transaction fees charged on digital payments made via its platform, which includes both consumer and merchant transactions. Additional revenue comes from value-added services such as insurance, financial products, and lending services provided through its Payments Bank. Advertising and promotional services on its marketplace also contribute to earnings, alongside partnerships with various brands and merchants for couponing and marketing initiatives. Furthermore, Paytm has been expanding its revenue base by integrating financial services, allowing it to earn from loan interest and fees associated with its financial products.

One 97 Communications Ltd. Financial Statement Overview

Summary
The company faces significant challenges with profitability and cash flow management, evidenced by ongoing losses and negative cash flow. Despite this, it maintains a strong balance sheet with low leverage and substantial equity. There are signs of potential improvement in profitability, but achieving consistent revenue growth and cash flow stability remains crucial for future success.
Income Statement
45
Neutral
The company has shown volatility in its revenue growth with a 39% decline from 2024 to 2025. Gross profit margin improved slightly in 2025, but the net profit margin remains negative, indicating ongoing losses. EBIT and EBITDA margins also reflect negative profitability, though there is a narrowing of losses which suggests potential improvement.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with a high equity ratio of 70% in 2025. The debt-to-equity ratio is low, indicating conservative leverage levels. However, fluctuations in total assets and liabilities pose potential risks. The company maintains a substantial cash reserve, enhancing financial stability.
Cash Flow
35
Negative
Cash flow analysis reveals challenges with negative free cash flow and operating cash flow in 2025, indicating cash management issues. The operating cash flow to net income ratio is unfavorable due to persistent losses. However, the company had a better cash flow position in prior periods, suggesting potential for recovery.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue73.16B69.00B99.78B79.90B49.74B28.02B
Gross Profit20.56B13.94B20.13B11.74B-2.46B-3.19B
EBITDA-2.82B-12.34B-8.55B-16.83B-23.67B-17.95B
Net Income3.03B-6.59B-14.17B-17.76B-23.93B-16.96B
Balance Sheet
Total Assets0.00214.48B171.39B179.66B179.92B91.51B
Cash, Cash Equivalents and Short-Term Investments131.48B106.81B75.80B81.60B46.47B30.24B
Total Debt0.001.60B1.77B2.23B2.21B6.12B
Total Liabilities-149.97B64.51B38.41B49.73B38.62B26.35B
Stockholders Equity149.97B150.27B133.27B130.16B141.52B65.35B
Cash Flow
Free Cash Flow0.00-4.43B-1.71B-2.90B-17.43B-22.75B
Operating Cash Flow0.00-1.21B6.51B4.16B-12.36B-20.82B
Investing Cash Flow0.00-20.43B3.18B26.25B-54.89B19.30B
Financing Cash Flow0.00-527.00M-221.00M-11.12B80.53B-2.22B

One 97 Communications Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1285.10
Price Trends
50DMA
1295.78
Negative
100DMA
1235.82
Positive
200DMA
1048.47
Positive
Market Momentum
MACD
-2.04
Positive
RSI
47.39
Neutral
STOCH
25.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAYTM, the sentiment is Neutral. The current price of 1285.1 is below the 20-day moving average (MA) of 1302.26, below the 50-day MA of 1295.78, and above the 200-day MA of 1048.47, indicating a neutral trend. The MACD of -2.04 indicates Positive momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PAYTM.

One 97 Communications Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
₹227.33B28.931.92%-12.65%-42.72%
72
Outperform
₹671.87B28.265.15%2.78%-5.10%
70
Outperform
₹260.41B37.551.30%0.29%7.17%
63
Neutral
₹42.89B25.071.62%6.36%-54.41%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
₹811.10B-135.39-6.78%11.38%
49
Neutral
₹287.31B-165.5430.27%65.87%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:PAYTM
One 97 Communications Ltd.
1,285.10
289.40
29.06%
IN:ANGELONE
Angel One Limited
2,479.55
-511.45
-17.10%
IN:ITI
ITI Limited
295.00
-62.15
-17.40%
IN:OFSS
Oracle Financial Services Software Limited
7,661.35
-4,575.03
-37.39%
IN:ROUTE
Route Mobile, Ltd.
730.90
-667.05
-47.72%
IN:TATATECH
Tata Technologies Limited
642.90
-254.49
-28.36%

One 97 Communications Ltd. Corporate Events

One 97 Communications Increases Equity Shares Through Employee Stock Options
Dec 2, 2025

One 97 Communications Limited has announced the allotment of 225,559 equity shares to its employees under its stock option schemes. This move, approved by the company’s Nomination and Remuneration Committee, increases the company’s total issued share capital, reflecting its commitment to employee incentives and potentially impacting its market positioning by aligning employee interests with shareholder value.

One 97 Communications Transfers Offline Merchant Payments to Subsidiary
Nov 28, 2025

One 97 Communications Ltd. has executed a Business Transfer Agreement to transfer its Offline Merchant Payments Business to Paytm Payments Services Limited, a wholly-owned subsidiary, effective from midnight of November 30, 2025. This move, approved by shareholders, aligns with regulatory requirements and aims to consolidate operations for enhanced efficiency, with key management personnel also transitioning to the subsidiary.

One 97 Communications Transfers Offline Payment Business to Subsidiary
Nov 28, 2025

One 97 Communications Limited has announced the transfer of its Offline Merchants Payment Business to its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL), effective from midnight of November 30, 2025. This move, approved by the company’s shareholders, is part of an internal restructuring to comply with the Reserve Bank of India’s regulations and aims to consolidate related business operations for enhanced efficiency. The transfer includes the movement of senior management personnel to PPSL, ensuring continuity in leadership and operations.

One 97 Communications Simplifies Group Structure with Key Acquisitions
Nov 28, 2025

One 97 Communications Ltd. has completed the acquisition of remaining stakes in Foster Payment Networks, Paytm Insuretech, and Paytm Financial Services, making them wholly owned subsidiaries. This strategic move simplifies the company’s group structure and extends its control over various financial service entities, potentially strengthening its position in the digital payments and financial services sector.

Paytm Payments Services Secures RBI Authorization as Payment Aggregator
Nov 26, 2025

Paytm Payments Services Limited, a subsidiary of One 97 Communications Ltd., has received a Certificate of Authorization from the Reserve Bank of India to operate as a Payment Aggregator under the Payment and Settlement Systems Act, 2007. This authorization is expected to enhance the company’s operations and financial performance, reflecting positively in its consolidated financials, and potentially strengthening its position in the digital payments industry.

Paytm Partners with Groq to Enhance AI Capabilities
Nov 5, 2025

Paytm has announced a partnership with Groq to enhance its platform with real-time AI capabilities. By integrating Groq’s LPU technology, Paytm aims to improve the efficiency and scalability of its AI-driven services, enhancing transaction processing, risk assessment, and customer engagement. This collaboration is expected to strengthen Paytm’s position in the payments and financial services industry by providing faster, more reliable, and intelligent experiences for its users.

One 97 Communications Releases Financial Results for September 2025
Nov 5, 2025

One 97 Communications Limited has announced the publication of its unaudited standalone and consolidated financial results for the quarter and half year ending September 30, 2025. The results have been published in major newspapers and are available on the company’s website. This disclosure is part of the company’s compliance with regulatory requirements, reflecting its commitment to transparency and stakeholder communication.

One 97 Communications Releases Q3 2025 Monitoring Report
Nov 4, 2025

One 97 Communications Ltd. has released its Monitoring Agency Report for the quarter ending September 30, 2025, which details the utilization of proceeds from its Initial Public Offering (IPO). The report, reviewed by Axis Bank Limited and approved by the company’s Audit Committee and Board of Directors, is part of regulatory compliance under SEBI regulations. This disclosure is aimed at maintaining transparency with stakeholders regarding the financial management and strategic deployment of funds raised through the IPO.

One 97 Communications Grants Over 246,000 Stock Options to Employees
Oct 15, 2025

One 97 Communications Limited has announced the approval of granting 246,261 stock options to eligible employees under its Employees Stock Option Scheme 2019. This move, approved by the Nomination and Remuneration Committee, reflects the company’s commitment to rewarding its workforce and aligning employee incentives with company performance. The announcement also noted the lapse of 969,511 stock options and the cancellation of 4,557 options, indicating a strategic management of its stock option plans. This development could potentially enhance employee retention and motivation, thereby impacting the company’s operational efficiency and market positioning.

Paytm Introduces Postpaid Credit Line on UPI with Suryodaya Bank
Sep 17, 2025

Paytm has launched ‘Paytm Postpaid’, a credit line on UPI, in partnership with Suryodaya Small Finance Bank. This service offers consumers the convenience of ‘Spend Now, Pay Next Month’, providing up to 30 days of interest-free credit for payments made across merchant UPI QR codes or online platforms. This innovation aims to enhance liquidity management for consumers and offers merchants assured instant settlement. Initially available to a selected user base, the service will expand further, reflecting Paytm’s commitment to secure and innovative payment solutions.

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.Date of analysis: Oct 23, 2025