One97 Communications, which operates fintech and digital payments major Paytm is expected to clock higher revenue growth during the second quarter ended September 2024, but the losses may widen.Losses for the July-September 2024 period are likely to widen up to Rs 660 crore from Rs 290 crore in the same period of last year. Meanwhile, revenue from operations is seen growing up to 16% year-on-year (YoY).However, on a sequential basis, losses should shrink from Rs 838 crore clocked in the preceding June quarter. This sequential improvement will mainly be driven by growth in payment services to merchants and financial services businesses.Revenues too could increase up to 8% quarter-on-quarter (QoQ). 114423438In the June quarter, Paytm widened its losses to Rs 838 crore versus Rs 357 crore in the corresponding quarter of the previous financial year.Paytm's Q1 revenue was down to Rs 1,502 crore vs Rs 2,342 crore in Q1 of FY24, down 36% YoY.Here's what analysts expect from Paytm's Q2Motilal OswalExpect operating profitability to improve. Expect disbursements and GMV to increase sequentially. Expect total revenue growth to improve. Any further impact of the RBI notification to be a key monitorable.YES SecuritiesWe assume -2% QoQ de-growth in the Payment Services to Consumers, 10% QoQ growth in the Payment Services to Merchants, and 10% QoQ growth in Financial Services and Others and arrive at an overall growth in revenue from operations of 8% QoQ.We forecast Payment Processing Charges (PPC) as a proportion of the Payments Revenue to be at 57.0%, a metric that was 58.5% in 1QFY25. We arrive at a Total Expenses (ex PPC) de-growth of -4% QoQ, compared with a growth of 0.1% in 1QFY25, resulting in an EBITDA margin (ex Other Income and after ESOP cost) of -39.1%, an improvement (lower negative) of -1,363 bps QoQ.