Paytm shares slid 2% after large block deal of 1.32 crore shares changed hands

A total of 1.32 crore shares, representing 2.07% of the company’s equity, changed hands in a block deal at ₹1,307 per share, valuing the transaction at approximately ₹1,722 crore.

According to news reports, the transaction was estimated to be worth up to ₹1,639.7 crore, based on the floor price and the indicated share quantity.

Following the block deal, Paytm shares were trading at ₹1,314.30 apiece on NSE, falling 1.4%.

Vijay Shekhar Sharma's firm has a market capitalisation of ₹83,921.24 crore.

In the September quarter, the fintech firm had reported a strong improvement in profitability alongside solid revenue growth.  

Paytm's Q2 earnings

During the quarter, Paytm's operating revenue rose 24% year-on-year (YoY) to ₹2,061 crore, driven by continued growth in its payments and financial services businesses.

The company reported a profit after tax (PAT) of ₹211 crore, before a one-time charge for full impairment of a ₹190 crore loan to our JV, First Games Technology Pvt Ltd.

Reported PAT stood at ₹21 crore. The result marks a significant improvement from the previous quarter, underscoring Paytm’s progress towards sustainable profitability.

EBITDA improved to ₹142 crore, with a 7% margin, on account of revenue growth and operating leverage.

Contribution profit grew 35% YoY to ₹1,207 crore, with a healthy 59% margin, driven by higher net payment margins and an increased share of financial services revenue.

Paytm’s payment services revenue rose 25% YoY to ₹1,223 crore, while net payment revenue increased 28% to ₹594 crore.

Gross Merchandise Value (GMV) surged 27% YoY to ₹5.67 lakh crore, supported by improved processing margins on account of higher growth of credit cards on UPI and affordability offerings (such as EMI).