One97 Communications shares surge nearly 7% as Q4 loss narrows

One97 Communications, Paytm's parent company, saw its shares surge nearly 7% following better-than-expected Q4 results that signaled a turnaround in its core payments business. The fintech major reported 18% quarter-on-quarter revenue growth to ₹2,150 crore, with losses narrowing to ₹170 crore. This performance eased investor concerns after RBI's restrictions on Paytm Payments Bank earlier this year. Market analysts attribute the rally to successful diversification of payment processing to other bank partners and growth in merchant lending. Paytm's loan distribution business grew 35% sequentially, disbursing ₹12,500 crore in Q4. The stock rebound reflects renewed confidence in Paytm's ability to pivot its business model, though it remains 60% below its IPO price. Management guidance suggests the company may achieve EBITDA profitability by Q2 FY26 if current growth trajectories continue.