Brokerages Lift Outlook as Paytm Hits New High Despite Mixed Q2 Profit

Paytm’s parent company One 97 Communications saw its shares jump over 5% to ₹1,333.45 on Thursday, marking a new 52-week high and pushing its market capitalization to nearly ₹85,000 crore. The rally comes despite a mixed earnings performance for the September 2025 quarter, where consolidated net profit fell sharply to ₹21 crore from ₹930 crore a year earlier due to a one-time gain in the base quarter. However, revenue rose 24% YoY to ₹2,061 crore, while Ebitda surged nearly 96% YoY, reflecting stronger cost controls and improved margins.

Brokerage firms remain optimistic about Paytm’s growth trajectory, projecting up to 18% upside in the stock. Citi maintained a ‘buy’ call with a ₹1,500 target, citing stronger credit on UPI and better unit economics due to reduced device costs. JM Financial also issued a ‘buy’ rating with a ₹1,470 target, highlighting higher payment processing margins and operational efficiency that led to near-doubling of Ebitda QoQ.

New initiatives and expansion opportunities are further boosting sentiment. Paytm announced a strategic partnership with US-based Groq to harness high-speed, scalable real-time AI solutions for payments and merchant services. YES Securities expects the company’s revamped BNPL offering and AI-driven merchant capabilities to enhance profitability, assigning an ‘add’ rating with a ₹1,400 target. Meanwhile, Motilal Oswal remains cautious, maintaining a ‘neutral’ stance with a ₹1,200 valuation despite improved contribution margin assumptions.