Paytm shares rally 6% as fintech returns to black in Q4; check fresh target prices

Paytm shares target prices: Shares of One 97 Communications Ltd, the parent company of fintech platform Paytm, surged more than 6.4 per cent to Rs 1,181 during the trading session on Thursday after the company returned to black in the quarter ended on March 31, 2026. It commanded a total market capitalization of more than 75,000 crore.  

Paytm Q4 results

One 97 Communications returned to black as it reported a net profit of Rs 183 crore. However, it had reported a net loss of Rs 545 crore in the year ago period. The parent company of Paytm reported a 18.4 per cent YoY jump in revenue at Rs 2,264 crore for the March 2026 quarter.

Operationally, its ebitda improved sharply to Rs 132 crore, with margins coming in at 6 per cent. Financial services revenue rose 38 per cent YoY to Rs 750 crore. Merchant GTV grew 27 per cent YoY to Rs 6.5 lakh crore, while its average monthly transacting users (MTU) expanded by 50 lakh YoY to 7.7 crore, for the quarter.  

Paytm target prices

"Paytm’s revenue growth in Q4FY26 and forward outlook for FY27 was ahead of our expectation. On a like-for-like basis Q4 revenue growth accelerated to 23 per cent YoY, despite absence of PIDF incentives in Q4. The company is seeing market share gains in its payments business; its UPI value market share was +30 bps QoQ in Q4 and overall P2M market share was 50 bps QoQ," said Goldman Sachs.

Paytm revenue growth is getting positively impacted by early scale up of postpaid and sustained strong traction in merchant lending distribution. It expects continuation of these trends to drive an acceleration in its FY27 revenue growth, it adds. "We raise our FY27E-FY29E revenue estimates for Paytm by up to 2 per cent and see upside if it delivers on its guidance," it said with a 'buy' and a target price of Rs 1,400.

Paytm delivered Q4FY26 Ebitda in line with consensus, as lower payments margins were offset by stronger financial services revenues, said Bernstein. "Continued cost discipline reinforces our base case of non-linear Ebitda expansion, driven by healthy revenue growth alongside tightly controlled indirect costs," it said.

Bernstein has cited resilient Ebitda, strong momentum of financial services and improving consumer engagement as key positives for Paytm, while device additions and sustained cost discipline remain in line. However, compression of payment margin remains negative. The brokerage has an outperform rating on the stock with a target price of Rs 1,500.

Performance remained strong even without UPI incentives & PIDF support and adjusted performance was ahead of expectations when normalised for missing incentives. The company shows core business strength and sustainability of growth model, said Jefferies.

Revenue is projected to grow to Rs 1.25 lakh crore by FY28, while Ebitda is expected to scale significantly with margins improving to 16 per cent by FY28 with strong operating leverage and margin expansion story. Healthy balance sheet supports future growth investments, added the global brokerage with a 'buy' rating and a target price of Rs 1,350, supporting positive market outlook.