Paytm shares: UPI fee changes could aid revenue, margin recovery; what Kranti Bathini says

One 97 Communications Ltd has returned to the spotlight as improving sentiment around digital payments and fresh optimism over UPI fee-related changes revive the investment case for the stock. For investors who entered near the lows, the message from Kranthi Bathini, Director of Equity Strategy at Wealthmills Securities is clear: stay invested, but consider taking some money off the table.

Responding to a viewer who bought Paytm at Rs 425 around two years ago, Bathini said the investor had shown unusual conviction at a time when the stock was deeply out of favour. With the stock now approaching key historical levels, he suggested a calibrated strategy rather than a full exit.

A comeback trade gathers strength
Paytm’s recovery has been one of the more closely watched turnarounds in the new-age tech and fintech space. Bathini underlined that the investor had entered when “there was no positivity in the stock” and held on despite widespread pessimism.

That patience, he argued, is now being rewarded as the stock moves closer to its IPO price and day-one listing zone — levels that often become psychologically important for both retail and institutional investors.

Why analysts still see room to hold
Bathini stopped short of recommending an outright profit-booking call. Instead, he said investors can continue to hold Paytm at current levels, especially as the broader payments ecosystem is back in focus after the recent introduction of UPI MDR-related fees.

“He can hold on to the stock,” Bathini said, while adding that investors who are overexposed should “take some profit from the table, at least take back his capital and remaining stay invested.” The advice reflects a classic portfolio-balancing approach: protect principal, but retain exposure to further upside.

Margin recovery in focus
The bigger trigger, according to the analyst, is the possibility that fee-related changes in the UPI ecosystem could begin feeding into better monetisation. That, in turn, may help improve the earnings profile of payment companies that have long battled concerns over profitability.

Bathini said the MDR and UPI fee changes are “going to have some kind of a positive impact” on “revenue and margin recovery” for such stocks in the coming quarters. For Paytm, that shifts the narrative from pure survival and sentiment repair to a more fundamental question: whether operating leverage can now start showing up more clearly.

What investors should watch
The broader market backdrop also matters. In the larger discussion, Bathini pointed to stock-specific action in a range-bound market, suggesting investors should remain selective rather than chase momentum blindly.

For Paytm holders, that means the stock may still offer upside, but discipline is key. As it nears landmark price levels, partial profit-taking could help lock in gains while preserving participation in what may yet be a deeper fintech rerating.