Paytm shares surged 8.5% to cross the ₹400 mark in early trading on June 10, marking a third day of gains. The rally comes despite recent struggles, largely due to RBI’s actions against Paytm Payments Bank, which impacted the company’s stock performance earlier in the year.
After the opening bell, Paytm’s stock reached a peak of ₹414, an 8.6% increase from the previous close. However, gains were reduced later in the session; by mid-morning, the price had adjusted to ₹396.2, still reflecting a 3.9% rise.
The current price marks a 27% increase from last month’s record low of ₹310. This low followed regulatory challenges starting in February when RBI restricted Paytm Payments Bank from acquiring new customers and issuing credit due to norm violations.
Despite financial hurdles, Paytm remains a dominant player in India’s digital payments sector, trailing only behind PhonePe and Google Pay. In May 2024, the company facilitated ₹1.24 lakh crore in UPI transactions, reinforcing its market position.
For the quarter ending March 2024, Paytm reported a widened net loss of ₹550.5 crore, up from ₹167.5 crore a year earlier, with a slight 2.9% dip in year-on-year operational revenue, totaling ₹2,267.1 crore. The results highlight ongoing financial challenges amidst operational growth.
