Paytm Q2 Results Review - Revenue, Gross Merchandise Value Inline; Contribution Margin Expands: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.One 97 Communication Ltd. reported a profit after tax of Rs 9.3 billion, aided by the sale of its entertainment ticketing business, which resulted in net gains of Rs 13.5 billion. Adjusting for the same, the net loss stood at Rs 4.2 billion, better than our expectation of Rs 6.6 billion loss.Revenue stood at Rs 16.6 billion (largely in line), and gross merchandise value too stood largely in line at Rs 4.5 trillion (inline, 6% QoQ). Subscription revenues grew 22% YoY/3% QoQ, while disbursements saw an uptick of 5% QoQ (down 67% YoY).Net payment margin improved 21% QoQ to Rs 4.65 billion (10 bp of GMV versus 9 bp in Q1), which resulted in an improved contribution margin of 53.9%.We largely maintain our contribution profit estimates. We estimate Paytm to turn Ebitda positive by FY27. Also, Paytm has received much awaited approval from NPCI of onboarding of new UPI customers; we will further review our estimates and rating after getting more clarity on recovery in business volumes and growth in monthly transacting users, post this key regulatory approval. We retain our Neutral rating with a target price of Rs 700..Click on the attachment to read the full report:.Zomato Q2 Results Review - Stable Quarter, Quick Commerce Investments In Focus: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Paytm Q2 Results Review - Revenue, Gross Merchandise Value Inline; Contribution Margin Expands: Motilal Oswal

The brokerage estimate the company to turn Ebitda positive by FY27.

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Paytm Q2 Results Review - Revenue, Gross Merchandise Value Inline; Contribution Margin Expands: Motilal Oswal

The brokerage estimate the company to turn Ebitda positive by FY27.

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