Paytm shares dip for seventh straight session. Time to buy after Q1 results?

Shares of One 97 Communications (Paytm) extended their losing streak for a seventh consecutive session on Wednesday, 22 July, as investors continued to react to the company's June quarter (Q1 FY27) earnings and its decision to shelve its first-ever bonus share issue.

The Vijay Shekhar Sharma-led fintech company's board announced the Q1 FY27 results after market hours on Monday, 20 July. Paytm share price fell another 2% on Wednesday, taking its cumulative decline to around 8% over the past seven trading sessions.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said Paytm has corrected nearly 8% from its recent high of ₹1,407, reached on 15 July, reflecting healthy profit-booking after a strong rally between early June and mid-July.

According to Shah, the stock's Relative Strength Index (RSI) has eased from the overbought zone of 80 to around 59, indicating a pause in bullish momentum rather than a reversal of the broader trend. He added that the Average Directional Index (ADX) has flattened near 45—its highest level since March 2026—suggesting that the strength of the prevailing uptrend has moderated.

Shah believes the stock has found support around its 20-day exponential moving average (EMA), making the ₹1,275-1,270 zone a key technical level to watch. Sustaining above this support could pave the way for a fresh rebound, while a decisive break below it could extend the ongoing correction.

Paytm - Q1 Results

Paytm reported a 79% year-on-year rise in consolidated net profit to ₹220 crore for the June quarter (Q1 FY27), driven by sustained growth in its payments business, merchant subscription revenues and financial services distribution.

The fintech company had posted a net profit of ₹123 crore in the corresponding quarter last year, while profit increased sequentially from ₹183 crore in the March quarter. In FY26, Paytm had reported its first-ever annual profit of ₹552 crore.

Revenue from operations grew 28% year-on-year to ₹2,448 crore in the April-June quarter from ₹1,918 crore a year earlier. Total income rose to ₹2,630 crore, compared with ₹2,159 crore in the year-ago period, while total expenses stood at ₹2,383 crore. Profit before tax (PBT) nearly doubled to ₹247 crore, up from ₹126 crore in the corresponding quarter of the previous fiscal.

Paytm also continued to witness strong momentum in its core payments business, with merchant gross merchandise value (GMV) rising 31% year-on-year to ₹7.1 lakh crore during the June quarter, reflecting higher merchant adoption and payment volumes.

Separately, the company's board decided not to proceed with the proposed bonus share issue after reviewing the proposal. It said Paytm would instead remain focused on driving sustainable growth, improving profitability and creating long-term value for shareholders.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.