Goal: ₹1,250
CMP: ₹853.20
One97 Communications (Paytm) reported ₹1,830 crore in Q3FY25 income (+10 per cent q-o-q) pushed by sustained rise in Funds GMV (+13 per cent q-o-q) together with a sharper development in monetary providers pushed by larger take-rates in service provider mortgage disbursals (16 per cent q-o-q).
Take-rate in monetary providers improved 188 bps sequentially majorly as a consequence of: about 80 per cent of service provider mortgage disbursals (₹3,100 crore) shifting to FLDG; larger mixture of service provider loans; and assortment efficiencies driving larger incentives on these service provider loans. Private Loans dipped 12 per cent q-o-q with continued stress being seen whereas service provider loans rose 16 per cent q-o-q pushed by pent-up demand.
Advertising and marketing providers income declined 12 per cent sequentially (flat excluding Occasions Ticketing enterprise). With front-ended DLG value being parked underneath different direct bills, the corporate reported 130bps sequential dip in contribution margin.
Nevertheless, continued tight management on oblique bills ensured Adj. EBITDA lack of ₹40.5 crore, enchancment of ₹150 crore q-o-q.
Going ahead, we count on the impression of DLG value to normalise with CM reverting again in the direction of 55 per cent (excluding UPI incentives) and the corporate reporting PAT profitability subsequent quarter, due to UPI incentives price ₹350 crore.
