On Monday, Paytm's stock price experienced a decline of over 3% after the digital payments company reported a consolidated net loss of ₹292 crore for the second quarter of FY24. Paytm's shares dropped by as much as 3.47% to ₹953.00 per share on the BSE.

The company, led by Vijay Shekhar Sharma, disclosed a consolidated revenue from operations of ₹2,519 crore for the September quarter, reflecting a 32% growth compared to the ₹1,914 crore reported in the same period the previous year.

In Q2FY24, the fintech major recorded a negative Earnings Before Interest, Depreciation, Taxes, and Amortization (EBITDA) of ₹232 crore, which is an improvement compared to the EBITDA loss of ₹538 crore year-on-year. Nevertheless, most analysts anticipate that the company's operational efficiency will contribute to achieving operating profitability and overall profitability by the second half of FY25E.

Here is the analysis from brokerage firms regarding Paytm's Q2 results and its shares: BofA Securities noted that Paytm's Q2 results were largely in line with their revenue estimates, but EBITDA exceeded their expectations due to consistent growth in payments and increased credit usage. They observed that the slower loan growth was in line with their expectations, as Paytm was intentionally focusing on improving the quality of its loan portfolio.

Following the Q2 results, BofA Securities revised its FY24 and FY25 Earnings Per Share (EPS) to ₹-14.9 and -2.1. They reconfirmed their 'Buy' rating on Paytm and raised the target price from ₹1,020 to ₹1,165 per share, citing a favorable risk-reward profile.