Paytm shares gain for fifth straight session, trade above ₹1,000 for first time in 2025; here's why

Shares of One97 Communications, the parent of payment service provider Paytm, rose for fifth straight session on Wednesday, July 16. In the last five trading sessions, Paytm shares have rallied nearly 12% to trade above its important psychological level of ₹1,000 for the first time this year, data from BSE showed. In intraday deals on Wednesday, Paytm shares rose as much as 2.5% to hit an intraday high of ₹1,013.75.

Paytm shares came under buying interest after reports suggested that the stock will be upgraded to MSCI Standard index. According to brokerage firm Motilal Oswal, Paytm is likely to be upgraded to MSCI Standard index from MSCI Smallcap index at its upcoming revision in August.

The revision in MSCI index will lead to buying in Paytm shares by funds which track MSCI indices, analysts said. As per Motilal Oswal calculations the possible rebalancing will lead to inflows worth $212 million.

Meanwhile, Paytm will announce its June quarter earnings on July 22 and will hold earnings conference call for investors at 6:00 pm on that day itself. In first quarter of current financial year, Paytm shares have outperformed the NIFTY50 index by rising 18% as against 8.5% gain in the NIFTY50 index.

In the fourth quarter of financial year 2024-25, Paytm's net loss narrowed to ₹540 crore in the January-March quarter from a loss of ₹550 crore in the same period last year. Its revenue from operations declined 16% in the fourth quarter of the financial year 2024-25 to ₹1,911 crore as against ₹2,267 crore registered in the year-ago period.

Paytm reduced its indirect costs by 1% quarter-on-quarter (QoQ) to ₹991 crore, marking a 16% year-on-year (YoY) decline. This was largely due to a 36% YoY reduction in non-sales employee costs. The company’s EBITDA before ESOP (including UPI incentive) stood at ₹81 crore, while excluding UPI incentives, it improved by ₹51 crore QoQ to ₹11 crore, reflecting better operational efficiency, the Noida-based company said.

As of 1:58 pm, Paytm shares traded 2.29% higher at ₹1,011.70, outperforming the BSE500 index which was up 0.11%.