Paytm’s parent company, One97 Communications, is due to report its financial results for the April to June 2022 quarter of the fiscal on Friday. Domestic brokerage firm ICICI Securities expects the fintech company’s revenue to jump, but the loss may continue to widen.

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ICICI Securities has predicted that Paytm’s revenue from operations would grow 73 percent to Rs Rs1780.6 crore, which also means a 16 percent sequential rise.

The estimate comes following Paytm’s monthly update for the two months ended May 2022, in which it said its gross merchandise value (GMV) stood at Rs 1.96 trillion. “Taking the monthly run rate of Rs 1 trillion, we estimate 15 percent quarter-n-quarter growth in GMV to Rs3 trillion,” the brokerage firm said.

Paytm also reported an average monthly transacting user (MTU) at 74 for the two months ended May this year. Also, 5.5 million loans and Rs36 billion value of loans were disbursed through its platform during the two-month period.

Meanwhile, Goldman Sachs expects Paytm's revenue to grow 90 percent year-on-year (YoY) for the quarter under review with a 38 percent FY22-25E revenue compound annual growth rate (CAGR).

The global brokerage said the company's January-March quarter results "exhibited another quarter of strong and improving monetisation of the payments vertical". It added that Paytm's cash burn situation has been improving.

However, ICICI Securities is of the view the company is likely to post a loss before exceptional items and tax from continuing operations at Rs 711.5 crore, up 102 percent from Rs 376.4 crore in the same quarter last financial year, but 7 percent lower than Rs 761.9 crore in the previous quarter ended March 2022.

The brokerage also believes the financial services company would report earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss at Rs 676.8 crore. This is 97 percent higher than the loss of Rs 370.9 crore in the corresponding quarter a year ago and 7 percent more than the loss of Rs729 crore the company incurred in the previous quarter.

On the other hand, Paytm’s EBITDA loss before the employee stock ownership plan (ESOP) is likely to come in at Rs 293.6, down from Rs 337.5 crore in the year-ago quarter, according to the brokerage firm.

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With the focus of One97 Communication’s management on improving its operating profitability, ICICI Securities expect some of the firm’s direct, employee and software expenses to decline sequentially, which the brokerage believes should improve adjusted EBITDA, i.e. EBITDA before ESOPs.

In a business update earlier this month, Paytm said it had disbursed Rs 84.75 lakh in loans (in partnership with top lenders) in the quarter, registering nearly 30 percent quarter-on-quarter growth or 492 percent YoY. The aggregate total loan value of the company is now Rs 5,554 crore for the June quarter, which is a growth of 779 percent on a year-on-year basis.