Paytm shares approach Rs 1,100 mark, hit 52-week high; where's the stock headed?

Shares of Paytm (listed as One 97 Communications Ltd) rose to a fresh 52 week high in early deals on the back of stellar Q1 earnings today. Paytm stock zoomed 3.55% to Rs 1090 in the current session against the previous close of Rs 1052.60 on BSE. Market cap of Paytm climbed to Rs 66,345 crore on BSE. 

Motilal Oswal has a neutral stance on the Paytm stock with a target of Rs 1025, a fall of 2% compared to Tuesday's close. 

"PAT came in higher than our estimate owing to lower expenses related to default loss guarantee (DLG), collections, and ESOP," the brokerage said adding that "We maintain our contribution profit estimates and project PAYTM to turn EBITDA positive by FY26. We value PAYTM at Rs 1,025 based on 21x FY27E EBITDA, which corresponds to 6.8x FY27E sales."

Brokerage firm Jefferies has upgraded the stock to "buy" from its earlier rating of "hold" after Q1 earnings. 

Jefferies has raised its price target on Paytm to Rs 1,250 from Rs 900 earlier.

According to Jefferies, while the Monthly Transacting Users (MTU) and Gross Merchandise Value (GMV) growth on a sequential basis is encouraging, but contributing margins will stabilise a little lower over the next two to three quarters.

Bernstein has maintained its "outperform" call with a price target of Rs 1,100 per share. It referred to the June quarter profit as an important milestone for the business.

The brokerage added that the business might report profit in the coming quarters but to sequential revenue growth will be the key to sustain the current profit levels. 

Paytm reported its first-ever quarterly net profit since listing on Tuesday. Paytm clocked a profit of Rs 122.5 crore in the June 2025 quarter led by a sharp fall in  expenses. In the June 2024 quarter, loss of the firm stood at Rs 840 crore. 

Expenses fell sharply to Rs 201.61 croe in the last quarter against Rs 247.64 crore in the June 2024 quarter. In the March 2025 quarter, expenses stood at Rs 215.49 crore. 

Revenue stood at Rs 1918 crore in the last quarter due to an increase in number of subscription merchants, higher GMV and growth in revenues from distribution of financial services.