Shares of Paytm Plummet 20% After Company Looks to Curtail Loans With Low Values

A day after the digital payments company announced it will issue fewer sub-50,000-rupee (about $600) personal loans after the central bank’s tightening of regulations on consumer lending

[{"selector":"#anim-89a5fe56-450d-4dbb-bd90-1c8a8e845732 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(3.610641943139889%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

This news caused shares of the company to plunge 20% to the day’s low of Rs 650.45 on the NSE.

[{"selector":"#anim-6d2d3dee-b6de-4a1c-8987-21061c68d375","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-76552968-5844-4cd8-8a44-16618f829b81","keyframes":{"transform":["translate3d(0px, 105.65881%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-27133dad-f472-4eca-ac0e-18c8a885958c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-abffaa29-bae4-48d8-8ff4-6d6cd3966184","keyframes":{"transform":["translate3d(0px, 210.66314%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-91ee26d5-62b7-4a96-bfb6-fac6fae51a15 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-33.2095946210269%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}]

Since the company’s debut two years ago, its shares have experienced the largest intraday percentage decline.

[{"selector":"#anim-5af7d07e-b98e-4ecd-97df-f626690bd28d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-46.37225407635001%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-32d7e7aa-3a34-443b-b07c-361a323b8dcd","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fb81575a-ad90-4a8c-b608-ce8ff0774996","keyframes":{"transform":["translate3d(0px, 105.65881%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-45cd8d02-cc7a-4ea2-9e42-66d78fdd4f31","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7d305b83-fdfc-45f7-9b81-5a5962659f05","keyframes":{"transform":["translate3d(0px, 169.62485%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

According to analysts, Paytm’s profitability is mostly driven by its lending growth, which is expected to slow down.

[{"selector":"#anim-45619328-099d-4ceb-b85a-5889911e9848 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-39.95013782798677%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-e622a253-8fa4-4bb7-9bd9-ecd98e5a6283","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-419c66c4-95f6-448f-a47f-6a0782219ca1","keyframes":{"transform":["translate3d(0px, 105.65881%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9146b9ba-baab-4532-a85d-71aeaabad04b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6ad2c3ec-39cb-4be9-bd1e-5493e408f63f","keyframes":{"transform":["translate3d(0px, 169.62485%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

However, the company’s payments, commerce, and cloud momentum are expected to stay robust.

[{"selector":"#anim-a270e6db-b73f-43b3-85cf-7c931a7e16c4 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.20312490414518%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-43334471-7c91-487d-b3d5-c5f0a852afd0","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-74b33b7d-6cac-4d9a-ae9d-bf684d1fd8f9","keyframes":{"transform":["translate3d(0px, 105.65881%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-76237cd8-eab8-4083-ac56-4242f3b5aabc","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ca34a29f-3599-4d44-9bd4-d7c28d73cd72","keyframes":{"transform":["translate3d(0px, 210.66314%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Goldman Sachs now expects Paytm’s net income to turn positive in fiscal year 2025-26

[{"selector":"#anim-6a7e5310-33cf-430e-acf9-4152fa1dd20e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.16691879012402%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-f8b40121-7fc6-4526-a8f5-2f06e8024684","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-87a8a7c0-7187-4b62-970d-2a482a633f0b","keyframes":{"transform":["translate3d(0px, 105.65881%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-59b674d6-ef76-41db-9238-c7fb9f85942e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3ee78eb8-070c-44be-a4a1-14fca55b7c5e","keyframes":{"transform":["translate3d(0px, 210.66314%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]