The sale of Paytm’s ticketing business to Zomato will allow Paytm to strengthen its focus on core payments and help its financialservices distribution business turn profitable at an operating level, Motilal Oswal said.

Paytm and Zomato on Wednesday struck a dealunder which the food aggregator firm will acquire the ticketing business of Paytm for ₹2,048 crore. Brokerages have started to analyse the terms of the deal and its likely outcome for the two companies.

“With this sale, Paytm aims to refocus on strategic areas pivotal for its growth and sustainability. These areas include financial products (such as credit cards, insurance and loans), merchant services and travel services (flight, train and bus tickets), deals and cashback,” said Motilal Oswal in its report on Thursday.

“We estimate Paytm’s EBITDA to turn positive by FY27,” the report said.

A report from Emkay Research also said that Paytm is expected to deliver positive EBITDA in FY27.

“In our view, the deal would shore up Paytm’s cash and cash equivalents, which would possibly be used to scale up rewards/cash-back programme to revive its dwindling payments business following the RBI action,” the Emkay Research report said.

Zomato, on the other hand, will be developing a new app called District which will get the benefit of ticket bookings for movies, sports and live events with the acquisition.

“The District app could be a small part of Zomato’s business, but if executed correctly, it could give Zomato a strong mind share in the spending patterns of urban consumers across key forms of recreational or staple spending: groceries, food, and recreational “going out” activities spanning dining, movies, sports and music,” the Motilal Oswal report said.

Paytm’s combined entertainment GOV (gross order value) is estimated be 4 per cent of Zomato’s total GOV.

Paytm scrips were down 3.33 per cent to ₹554, while Zomato scrips were down 0.83 per cent to ₹257.8 on the BSE on Thursday.