Paytm shares soared to a 10% upper circuit limit, reaching ₹508.85 each on Friday, following news that the government approved its foreign direct investment (FDI) proposal for its payment aggregator business. The approval clears a major hurdle for Paytm Payment Services, the subsidiary affected by the previous FDI restrictions related to its Chinese connections.
The approval allows Paytm to proceed with a ₹50 crore investment in the subsidiary, which had been stalled for months. This development is expected to facilitate a return to normal business operations for the unit.
In financial results, Paytm’s losses widened significantly to ₹840.1 crore for Q1 FY25, up from ₹358.4 crore in the same quarter last year. Revenue from operations dropped to ₹1,502 crore, a 36% decline from ₹2,342 crore in the previous year. Total income also fell by 33.5%, from ₹2,464.2 crore to ₹1,639.1 crore. Revenue from payments contributed ₹900 crore, financial services added ₹280 crore, and the remainder came from marketing services. Losses increased from ₹550.5 crore in the previous quarter, and revenue from operations decreased by 33.7% from ₹2,267.1 crore.
Founded in 2010 by Vijay Shekhar Sharma, Paytm is a leading fintech company based in Noida, India. It provides various digital payment solutions and financial products. Paytm’s market capitalization stands at ₹32,376.81 crore, with a 52-week high of ₹998.30 and a low of ₹310 per share. As of 3:06 PM, shares remained locked at the 10% upper circuit limit, while the BSE Sensex was up 1.51% at 81,247.49.
