Paytm’s loss for the September quarter of the fiscal came in at Rs 571.5 crore, up from Rs 473.5 crore in the same period last year. However, this was lower than the CNBC-TV18 poll estimate of Rs 596 crore. Revenue rose 76 percent on a year-on-year basis to Rs 2013.6 crore. EBITDA loss jumped 8.4 percent to Rs 438.2 crore.

Brokerages have a mixed stance with some acknowledging the strong loan disbursement and GMV growth while others have expressed concerns over higher competition and weak unit economics.

CLSA continues to have a Sell rating on Paytm.

MS has an equal-weight rating on Paytm as it believes strong loan disbursement drove continued acceleration in revenue mix toward financial services.

Macquarie called it an operationally healthy quarter for Paytm even as concerns on unit economics remain and closure on IT audit is awaited. It pointed to a healthy pick-up in loan distribution, which grew 32 percent sequentially or six times annually. Loan distribution revenues now account for 18 percent of revenue (vs 8 percent a year ago), it said. Momentum in the financial services distribution business was healthy though the share of merchant loans remains low, it added.

Citi has a buy rating on the company and has a target price on its shares to Rs 1,055 as its credited sustained net payment margins and operating leverage for the quarterly results. It said Paytm appears on track to deliver on its stated guidance of adjusted EBITDA break-even by Sep’23 – with net payment margins and contribution margins sustained near 1HFY23 levels and reined-in fixed costs, guidance can be achieved.

Goldman Sachs too has given a ‘buy’ call on Paytm with a target price of Rs 1,100 per share. It said both revenue and EBIDTA were better than expectations and there’s been a consistent improvement in profitability as a key catalyst.