One97 Communications Struggles with Revenue Declines, Analysts Expect Recovery in 2Q

One97 Communications Ltd. (NSE: PAYTM), the parent company of Paytm—India’s leading mobile payments and commerce platform—has experienced significant declines in revenue and profitability over the past two quarters. The downturn has been largely attributed to the operational disruptions at its subsidiary, Paytm Payments Bank, after a directive from the Reserve Bank of India (RBI) forced the bank to suspend core services, including access to bank accounts and prepaid wallets, as of March 15. The discontinuation of rent payments via the Paytm app—another key revenue stream—has further compounded the company’s challenges.

Visible Alpha consensus estimates, however, suggest a potential recovery. Following a -34% quarter-on-quarter and -36% year-on-year decline in revenue for the first quarter of FY 2025, analysts project a +10% sequential revenue growth for the upcoming second quarter of FY 2025. Despite this improvement, revenues are expected to remain well below 2024 levels.

For the full year, Paytm’s revenue is anticipated to contract across its segments, with Payment & Financial Services down -36% year-on-year, Commerce & Cloud Services declining -4%, and Other Operating Revenue falling by -13%. Overall, the company’s 2025 revenue is projected to drop -30% year-on-year to ₹69.5 billion. A notable recovery in revenue growth is expected from 2026 onwards.