Paytm Share Price: Fintech firm turns profitable in Q4, brokerages see up to 24% upside despite 20% fall from peak

Paytm Share Price: Paytm shares remained in focus after the company reported its Q4 FY26 results, with brokerages maintaining a positive view on the stock, supported by improving profitability, strong revenue growth and better operating performance.

The stock of One 97 Communications, the parent of Paytm, was trading at Rs 1,110 at the time of brokerage updates.

Paytm Share Price Target

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Citi maintained a “Buy” rating on Paytm with a target price of Rs 1,375, indicating an upside of about 24 per cent from current levels. Jefferies also kept a “Buy” call with a target price of Rs 1,350, suggesting an upside of around 22 per cent.

Citi said Paytm’s core payment margins, excluding subsidies, continue to improve. The brokerage noted that profits and EBITDA missed estimates due to higher marketing expenses as the company increased promotional spending. However, it highlighted that core payment margins are steadily moving higher.

Citi also pointed out that Paytm’s merchant business remains strong and financial services continue to show solid growth. It added that operating leverage is playing out as fixed costs remain under control. According to Citi, the overall business trend indicates gradual improvement in core profitability even though short-term expenses remain elevated.

Jefferies maintained its positive stance on Paytm despite missing estimates due to the absence of UPI incentives. It said revenue momentum has been strong and helped offset the impact of missing subsidies.

Jefferies said, “Tad below estimate due to non-receipt of UPI subsidy, adjusted for that, the results were slightly ahead.” It added that revenue growth of 18 per cent was driven by financial services and came despite the absence of PIDF and UPI incentives.

The brokerage also said Paytm’s revenue momentum can support earnings going forward, even though there is risk linked to uncertainty around UPI incentives. It further noted that growth in financial services and payments continues to remain a key driver for the company.

Paytm Q4 FY26 Earnings

On financial performance, Paytm reported a consolidated net profit of Rs 184 crore in Q4 FY26, compared to a loss of Rs 540 crore in the same quarter last year. Revenue from operations rose 18.4 per cent year-on-year to Rs 2,264 crore.

For the full financial year FY26, Paytm reported revenue of Rs 8,437 crore, up 22 per cent year-on-year. EBITDA stood at Rs 502 crore, compared to a loss of Rs 1,506 crore in the previous year. Profit after tax for FY26 stood at Rs 552 crore, against a loss of Rs 663 crore in FY25.

The company said its results were impacted by the discontinuation of the PIDF scheme and the pending finalisation of FY26 UPI incentives. It also stated that it was able to achieve its guidance of offsetting 30 per cent to 40 per cent of the PIDF impact in Q4 FY26.

Paytm said that its revenue growth was supported by gains in market share in merchant and consumer payments as well as expansion in financial services distribution. Contribution margins improved, supported by higher payment processing margins and a rising share of financial services.

Paytm Stock Performance

One 97 Communications (Paytm) is currently trading at around Rs 1,110. The stock is down about Rs 271 or nearly 20 per cent from its 52-week high of Rs 1,381.80, which it touched on 02 December 2025.

At the same time, the stock is still well above its 52-week low of Rs 808, recorded on 07 May 2025, indicating a recovery from lower levels over the past year.

On a broader basis, the stock has gained 27.07 per cent in 1 year and 60.96 per cent over 3 years, while it is down 14.07 per cent on a year-to-date basis. In the short term, it has risen 7.93 per cent in 1 month and 1.30 per cent in 1 week, showing some recent positive momentum.

The company’s total market capitalisation stands at around Rs 71,052.17 crore.