Paytm shares are set to be in the spotlight on Tuesday after the fintech company reported a sharp rise in fiscal second quarter profit and an improvement in operating margins. Brokerages including Jefferies, Citi, Goldman Sachs and Bernstein maintained bullish ratings on the stock. Analysts cited strong growth in financial services, improving profitability and potential gains from the proposed UPI merchant discount rate (MDR).
Bernstein has the highest target price of Rs 2,200 on Paytm stock, implying an upside of approximately 33 percent from Monday's closing price. Jefferies has a Buy rating with a target of Rs 2,150, while Goldman Sachs and Citi have targets of Rs 2,010 and Rs 1,940, respectively.
Paytm's parent company, One 97 Communications, closed at Rs 1,654.70 on Monday, gaining 2.4 percent ahead of its earnings announcement. The stock has risen 28.1 percent so far in 2026, outperforming the Nifty 50, which has declined 13 percent over the same period. The company's market capitalisation stood at Rs 1.06 lakh crore.
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Bernstein highlighted Paytm’s strong revenue momentum and improving payment margins. The brokerage said that financial services revenue grew 49 percent year-on-year, while marketing services revenue increased 26 percent. Net payment revenue rose 7 percent sequentially and 8 percent year-on-year. Although indirect costs increased 14 percent, EBITDA jumped 90 percent year-on-year, delivering a margin of around 10 percent.