Indias new-age tech stocks saw a sharp divergence in efficiency in the first half of 2025, as investors recalibrated their expectations and started pricing in execution risk, capital discipline, and incomes presence.
Shares of Ola Electric crashed almost 50%, Swiggy fell 26%, and Paytm decreased 9%, as execution issues and cash burn drove investors away.
In sharp contrast, Nykaa surged 27.4% and PB Fintech increased 14.4% on improving profitability and margin visibility.With financiers now fulfilling revenues over ambition, the concern is whether Indias digital beloveds are finally being judged by basics, and if that marks a long-term reset in how the market rates tech-led growth.The sharp correction in new-age tech stocks is a much-needed recalibration rather than a collapse, stated Harshal Dasani, Business Head at INVasset.
Financiers are no longer paying for GMV or user growththeyre spending for execution, success, and clarity.
According to Dasani, EV/sales multiples throughout the board have actually compressed from 1518 at IPO to 69 now.
Its no longer about buying into the ideaits about backing sustainable models.Profits rewarded, promises punishedGains in Nykaa and PB Fintech have actually been anchored in noticeable improvements in success.
Nykaa reported a Rs 335 crore revenue in Q1 FY25 with 46% year-on-year income growth, while PB Fintech turned rewarding with Rs 353 crore in FY25.
Nykaa and PB Fintech have stuck out due to clear shipment, stated Dasani.
Markets have drawn a clear line: theyre rewarding those revealing proof of profitability, not possible alone.Live EventsGaurav Garg of Lemonn Markets stated, In H1 2025 financiers rewarded companies that are already successful or have a noticeable, near-term path to success while marking down businesses that still burn money or have execution mis-steps.
The marketplace, Garg kept in mind, is no longer spending for development at any cost.Meanwhile, weaker names bore the force of the correction.
Ola Electric lost 49.7% in the first half of 2025, with sales falling greatly and losses broadening.
Olas profits fell 59% YoY in Q4 FY25 and quarterly loss doubled to Rs 870 crore.
Meanwhile, monthly registrations sank 45% YoY in June and market share toppled.
Regardless of earlier trading at over 40 FY24 sales, the business now trades closer to 4.9 FY25 sales.
Garg said that unless shipments rebound and the 4680-cell job shows concrete cost savings, the stock is likely to stay under pressure.Swiggy, which dropped 26% in H1, posted a Rs 3,117 crore combined loss for FY25, weighed down by Instamart.
Instamarts losses expectedly increased on account of new shop scale-up and high customer acquisition, said Amarjeet Maurya, Deputy VPFundamental Research at Kotak Securities.
Regardless of this, Kotak retains a buy ranking with a target price of Rs 280 for the stock.Paytm slipped 9% in H1.
Its Q4 EBITDA-before-ESOP turned favorable at Rs 81 crore, user metrics dipped and regulatory uncertainty remained.
Paytm remains in transition, stated Dasani.
The key is to view execution trends, not simply brand name recall.Zomatos moms and dad, Eternal, fell 5% as development slowed in its food shipment service, though Blinkit posted strong earnings momentum.
Blinkit stays finest positioned to capitalize on increasing quick commerce penetration, said Maurya, who has a Rs 280 target rate and buy score on the stock.Market re-rates fundamentalsThe sentiment has moved from spirit to evaluation.
Investors have matured, therefore have expectations, stated Dasani.
This change sets the phase genuine wealth production as capital flows to business delivering basics, not just narratives.Post-IPO multiples have reset, stated Garg.
Many names listed on abundant earnings multiples (1535 sales).
As the first lock-ins expired, early financiers sold strongly, exposing the inequality between story and revenues power.
The average FY25 EV/sales for the cohort has actually dropped from 18 at noting to about 68 times.Macro conditions have accelerated the correction.
Increasing real rates lifted discount rates, compressing long-duration tech valuations worldwide, Garg stated.
Domestically, start-up funding fell 25% year-on-year in H1 2025, curbing threat appetite.Dasani stated, high-burn models like Swiggys Instamart show the cracksreporting a 5.6% EBITDA margin regardless of scale.
In fintech, Paytms Payments Bank restrictions show that compliance is now as vital as innovation.Turning point or temporary shakeout?Investors are ending up being selective.
Stock selecting is important in this area, stated Dasani.
PB Fintech and Nykaa are revealing strong metrics and executionmaking them worthwhile of build-up on dips.
Kotak has a more careful view on Nykaa, maintaining a minimize ranking with a target cost of Rs 185, pointing out extended evaluations and margin pressures in fashion.Garg laid out differentiated placing across the sector.
PB Fintech is viewed as premium but justified, Nykaa as reasonable at 45 sales, while Zomato needs wait & & watch up until Blinkit turns EBITDA positive.
Swiggy and Ola Electric, Garg stated, must be avoided till core systems turn rewarding.
Execution and cash-flow threat [is] high.Whats next?Analysts see the second half of 2025 as a vital stage that will separate sustainable operators from speculative bets.
The 2nd half of 2025 will likely reward those with momentum backed by margin expansion, stated Dasani.
Garg included that Nykaa and PB Fintech could re-rate even more if fashion and credit services continue to improve.However, for laggards, the bar is rising.
Unless Ola Electric demonstrates a sharp volume turn-around and Swiggy reins in Instamart losses, their shares are unlikely to reclaim IPO highs in H2, Garg said.The market has actually rotated from paying for possible to rewarding proof, he stated.
Financiers need to emphasise cash-flow visibility, disciplined capital allowance and regulative strength when sizing positions in Indias new-age tech champions.|Everlasting shares up 30% considering that March.
Financiers are feasting, but can Zomatos parent justify the cravings?(Disclaimer: Recommendations, ideas, views and viewpoints provided by the professionals are their own.
These do not represent the views of the Economic Times)