Paytm shares rise 5% to hit new 52-week high after Q2 show; check latest price targets

Paytm target price: One 97 Communications, the parent company of fintech platform Paytm, continues to attract positive reviews from the brokerage firms after a mixed set of earnings in the September 2025 quarter. Analysts, tracking the stock, see up to 18 per cent upside in this multibagger stock.

One97 Communications reported a consolidated net profit of Rs 21 crore for the quarter ended September 2025, a sharp decline from Rs 930 crore in the same period last year. The profit in the year-ago quarter was boosted by a one-time gain of Rs 1,345 crore from the sale of its movie and events ticketing business to Zomato, now known as Eternal.

The parent company of Paytm clocked a revenue from operations that rose 24 per cent year-on-year (YoY) basis to Rs 2,061 crore, driven by sustained growth in financial services and merchant payments. Ebitda rose 95.8 per cent YoY to Rs 141 crore, while Ebitda margin expanded to 6.8 per cent, reflecting continued focus on cost discipline and efficiency gains.

Shares of One 97 Communications jumped more than 5 per cent to Rs 1,333.45 on Thursday to hit a new 52-week high. The company was commanding a total market capitalization close to Rs 85,000 crore. The stock has more than doubled investors wealth from its 52-week low at Rs 652.30 in March 2025. Its has quadrupled investors wealth from its lows in February 2024.

Citi retained its 'buy' rating on Paytm with a target price of Rs 1,500 apiece citing strong growth in credit on UPI, which lifted its net payment margins by over 4 bps in Q2, while FY26-28E margin estimates raised nearly 4.2 bps. Device cost declined sharply, improving profitability per unit.

Paytm continued its track record of delivering better than expected profits for another quarter. It reported Rs 2,060 crore revenue with contribution margin maintained at 59 per cent, at the higher range of guidance. Though marketing services revenue dipped sequentially, Payments and Financial Services gained further momentum, said JM Financial.

With payment processing margin improving both due to mix and pricing along with efficiencies in indirect expenses, Paytm delivered 320bps rise in Ebitam with reported Ebitda almost doubling QoQ to reach Rs 140 crore. With sustained strength in operating performance along with multiple growth optionalities, we find attractive risk-reward," it added with a 'buy' rating and a target price of Rs 1,470.

One 97 Communication announced a partnership with Groq, an US-based leader in real-time AI inference, to power real-time AI for payments and platform intelligence. Paytm and its associate entities will deploy GroqCloud, powered by Groq’s purpose-built LPU, to achieve significantly faster, more cost-efficient and scalable AI inference compared to conventional GPU-based systems.

The overall unit economics of the new BNPL offering will be within 20 bps of what the company used to earn from the earlier version. In the earlier avatar, the BNPL product used to make a 70-80 bps margin. Also, management stated AI expands the opportunity hugely on the merchant side, said YES Securities.

"Importantly, payments processing margin improved on the back of traction for credit card on UPI and affordability solutions like EMI and above the guided 3 bps mark. The other aspect aiding payment processing margin is improved pricing discipline in the industry in terms of pricing to merchants," it added with an 'add' rating and a target price of Rs 1,400.

"We marginally raise our contribution margin assumptions for Paytm, driven by stronger revenue traction and prudent opex control. Despite the one-off impairment charge in Q2, we maintain our profitability estimates," said Motilal Oswal Financial Services. "We value Paytm at Rs 1,200, We reiterate our 'neutral' rating on the stock."