Shares of Paytm and Zomato, two prominent new-age companies in India, have come under selling pressure after they announced their December quarter (Q3) results. One 97 Communications, the parent company of Paytm, posted a net loss of Rs 208.30 crore for Q3FY25, an improvement from the net loss of Rs 219.80 crore in the same period the previous year. This was a significant reversal from the company's net profit of Rs 928.30 crore in Q2FY25, though it still showed a 35.9% Year-on-Year (YoY) revenue decline, bringing in Rs 1,827.80 crore in Q3.
Zomato's performance was similarly mixed. The company saw a 57% YoY drop in net profit, which amounted to Rs 59 crore, marking a 66.5% sequential decline from the previous quarter. On a more positive note, Zomato posted a strong 64% YoY growth in revenue, reaching Rs 5,405 crore. Despite the revenue growth, the overall decline in profits has raised concerns among investors.
Chart analysis of both stocks reveals divergent trends. While Paytm’s outlook remains challenged due to its ongoing losses and shrinking revenue, Zomato’s revenue growth suggests a potential for recovery, although profit concerns persist. Traders and investors are closely watching these trends, with Paytm potentially showing a more bearish outlook while Zomato might offer some opportunities if its revenue momentum continues. Investors need to balance short-term volatility with long-term prospects for both companies when making trading decisions.
