Motilal Oswal has issued a review of Paytm’s Q1 financial results, choosing to maintain a ‘neutral’ rating on the stock. The brokerage has revised the target price for Paytm downward, reflecting a cautious outlook amid mixed financial signals. Paytm’s first-quarter performance highlighted steady revenue growth but also indicated challenges related to profitability and cost management.

While Paytm continues to expand its user base and transaction volumes, profitability remains a key area of concern. Motilal Oswal’s analysis points to margin pressures and higher expenses impacting earnings. Despite these headwinds, the company’s strategic initiatives and market presence support a balanced view rather than a bearish stance.

Investors are advised to watch Paytm’s upcoming quarters closely to gauge the effectiveness of cost-control measures and revenue diversification efforts. The revised target price signals a wait-and-watch approach, underscoring the need for clearer visibility on sustained profitability before more optimistic revisions can be considered.

In the current volatile market environment, influenced by global cues and sector-specific developments, the neutral rating from Motilal Oswal reflects prudent caution, advising investors to remain selective with exposure to Paytm shares until further clarity emerges.