Paytm parent One97 Communications closed at a post-listing record high of ₹1,807.5 on Friday, marking the second time this week the stock has touched its one-year high level. According to Business Standard, the stock is currently trading at its highest level since November 2021 and is nearing its record high price of ₹1,961.05 touched on listing day in November 2021. The rally comes despite the broader market weakness, with BSE Sensex down 0.75% at 74,337 at 10:33 AM on Friday. The stock has bounced back 90% from its 52-week low of ₹947.10 touched on March 30, 2026, though it continues to trade about ₹342.5 below its initial public offering's issue price of ₹2,150. In the last five trading sessions, Paytm shares have climbed 8.5%, while from the beginning of the year, shares have surged 40%. Around 1.06 million Paytm shares changed hands in early trade, as reported by Bloomberg data. The stock has gained 22% in the past month, significantly outperforming the Nifty 500, which declined 10% during the same period.
Paytm reported a remarkable 79% year-on-year jump in consolidated net profit to ₹220 crore for Q1 FY27, while revenue from operations rose 27.6% to ₹2,448 crore compared with ₹1,918 crore a year ago. According to The Economic Times, the company's total income advanced to ₹2,630 crore from ₹2,159 crore year-on-year, while total expenses stood at ₹2,383 crore in the reporting quarter. The Noida-based firm has indicated that it expects FY27 revenue growth to exceed the 22% growth reported in FY26. As of September 11, 2026, Paytm has a total market capitalisation of ₹1.16 lakh crore.
Granules India promoter Krishna Prasad Chigurupati sold a 6.95% stake in Paytm parent One97 Communications through block deals on Friday for around ₹1,501 crore. According to Business Standard, Chigurupati held around 31% in the company at the end of the June 2026 quarter before the stake sale. Domestic as well as foreign institutional investors were among the buyers, led by Smallcap World Fund, with Granules India shares ending 1.6% higher on Friday. The significant stake sale by a promoter comes as the company continues to demonstrate strong financial performance and market momentum.
Bernstein has named Paytm its top pick, setting a price target of ₹2,200, implying upside potential of up to 26% from current market levels. According to The Economic Times, the brokerage expects Paytm's EPS to reach ₹78 by FY29, with even the FY29E EPS estimate of ₹54 standing above the ₹46 consensus estimate. Bernstein analysts highlighted that Paytm stands out for monetisation of client base in near-zero merchant discount rate (MDR) regime, which is now changing favourably. The brokerage expects Paytm's financial services revenue to grow at around 27% CAGR between FY26E and FY30E, driven primarily by its merchant loan distribution business, with merchant loans expected to remain the key contributor accounting for around 75% of financial services revenue. Bernstein sees Paytm having a clear competitive advantage and a long runway for growth, even if the company only achieves modest increases in loan penetration among its merchant base.
JM Financial Institutional Securities estimates incremental revenue of ₹200 crore in FY27 and ₹440 crore in FY28 from the enabling amendment allowing MDR on UPI transactions beyond defined thresholds. According to JM Financial Institutional Securities report, analysts estimate incremental adjusted Ebitda of ₹130 crore/₹410 crore in FY27E/28E, with overall adjusted EBITDA 8.9%/17.8% higher relative to earlier numbers. The brokerage assumes 25bps industry-wide MDR with 20% share captured by Paytm (roughly 5bps of pass-through) and 30% of UPI GMV qualifying for MDR. This revenue carries minimal associated cost, resulting in high flow-through to profitability, with margin moving up 100bps/250bps to 14.5%/20.4% respectively. However, key risks include eventual rate settling below the 25bps assumption and high turnover threshold calibrations that could narrow the eligible base.
