Synopsis: Posting its first-ever annual net profit and a 22 percent jump in revenue, Paytm has drawn fresh Buy calls from Emkay Global and JM Financial, with the two brokerages flagging improving EBITDA visibility and a long lending distribution runway as the key re-rating triggers going into FY27.
Shares of a leading digital payments and fintech company came firmly into focus after reporting a historic financial turnaround, swinging from an annual loss to its first-ever annual net profit. The results drew immediate attention from institutional investors and top brokerages, who quickly revised their price targets upward, with Q4 FY26 numbers meeting or beating most Street estimates across revenue, margins, and bottom-line delivery.
With a market capitalization of Rs. 71,785 crore, the shares of One 97 Communications (Paytm) were trading at Rs. 1,121 per share, with a 52-week range of Rs. 1,381.80 to Rs. 808. It is trading at a P/E of 98x.
What Brokerages Are Saying
JM Financial reiterated its Buy rating on Paytm and raised its target price to Rs. 1,490 from Rs. 1,320, which implies an upside potential of nearly 32% from the current market price. The brokerage house believes in continued profitability, higher operating leverage, and improved efficiency across its businesses. Paytm’s payments Gross Merchandise Value (GMV) rose 27 percent year-over-year to nearly ₹6.5 lakh crore during the quarter, in line with brokerage estimates. Loan disbursals are projected to rise primarily from merchant lending, while the recovery in unsecured credit is expected to add further tailwind going into FY27
Emkay Global reiterated its Buy rating with a target price of Rs. 1,500, which implies an upside potential of nearly 33% from the current market price, noting strong execution and an expanding profitability profile. The firm has been particularly constructive on Paytm’s merchant ecosystem, observing that Paytm is executing well on acquiring merchants by leveraging its Soundbox products and distributing loans to them, with low penetration of loans leaving a long growth runway. Emkay expects a 25 percent revenue CAGR over FY25–27, with PAT reaching Rs. 1,650 crore by FY27.
Both brokerages see the valuation as undemanding relative to Paytm’s internet-sector peers, with operating leverage now materializing faster than earlier expected and regulatory uncertainty largely behind the company.
FY26 Results: The Numbers That Changed the Story
For the full year ended March 31, 2026, Paytm reported consolidated revenue from operations of Rs. 8,437 crore, up 22.2 percent from Rs. 6,900 crore in FY25. Net profit came in at Rs. 552 crore, a complete reversal from the Rs. 663 crore loss in the prior year, marking the company’s first profitable year since its IPO listing.
Total expenses for the year fell to Rs. 8,521 crore from Rs. 9,096 crore in FY25, driven by a sharp reduction in employee costs from Rs. 3,288 crore to Rs. 2,765 crore and lower marketing spends. Cash and cash equivalents at the consolidated level stood at Rs. 3,285 crore.
Q4 FY26: Momentum Holds Into the Final Quarter
On a quarterly basis, Q4 FY26 maintained the momentum. Revenue from operations for the March quarter came in at Rs. 2,264 crore, up 18.4 percent year-on-year from Rs. 1,912 crore in Q4 FY25. Net profit for the quarter stood at Rs. 183 crore, against a loss of Rs. 545 crore in the same period last year. Payment processing charges as a proportion of revenue remained well-managed at Rs. 692 crore, and the company reported an operating profit of Rs. 173 crore before exceptional items.
Investor Overview
The first-ever annual profit and two Buy calls from credible brokerages make a compelling headline. But the stock’s elevated valuation leaves little room for execution missteps, and the lending distribution recovery, the key re-rating lever both brokerages are betting on, is still playing out. The regulatory overhang has largely cleared, and operating leverage is real. Whether the current price already reflects the FY27 earnings trajectory is the question every investor needs to answer for themselves.
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