Paytm shares jump 5% to hit 52-week high; company clarifies on AI report

Shares of One 97 Communications Ltd, the parent company of Paytm, surged 5.23 per cent in Wednesday's trade to hit a 52-week high of Rs 1,756.20. The stock has gained around 69 per cent over the past six months.

The rally came after Paytm issued a clarification regarding a media report titled "Paytm Bets on Workplace AI Agents in Pivot Beyond Payments".

Paytm said, "We wish to clarify that the Company has been investing in and developing artificial intelligence capabilities as part of its ongoing business initiatives, including possible 'revenue optimization journey of AI', as previously disclosed in the earning release for the Q1 FY27 and the transcript of the earning call submitted to the Stock Exchanges on July 27, 2026."

The company added that the media report did not concern any undisclosed event or information that was material or required disclosure under Regulation 30 read with Schedule III of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015.

"Paytm continues to comply with its disclosure obligations and will make appropriate disclosures as and when required under applicable regulations," the company further said.

Strong Q1 performance

Paytm reported a 79 per cent year-on-year (YoY) rise in consolidated net profit to Rs 220 crore for the quarter ended June 30, 2026, compared with Rs 123 crore in the year-ago period.

Revenue from operations rose 28 per cent YoY to Rs 2,448 crore in the April-June quarter, from Rs 1,918 crore a year earlier.

The company attributed the performance to higher payment transaction volume and value, growth in merchant subscriptions led by its Soundbox devices, and increased revenue from the distribution of financial services, including personal and merchant loans.

Global brokerage Bernstein recently retained its 'Outperform' rating on Paytm and raised its target price to Rs 2,200 from Rs 1,500 earlier.

The revised target price is above Paytm's IPO price of Rs 2,150 for the first time.

Bernstein said it has included the potential introduction of a merchant discount rate (MDR) on UPI transactions in its base-case estimates from FY28E.