Highlights

• Jefferies issues a “Buy” rating on Paytm with a target price of ₹1,450 per share.
• Q3 FY26 revenue rises 20% YoY to ₹2,194 Cr, with PAT reaching ₹225 Cr and a contribution margin of 57%.
• UPI consumer GMV grows 35% YoY; merchant subscriptions reach 1.44 crore, and all key RBI payment licenses secured.

Jefferies has assigned a “Buy” rating to One 97 Communications Ltd (NSE:PAYTM), setting a target price of ₹1,450 per share. The recommendation comes after the fintech giant posted its Q3 FY26 results, highlighting significant growth in operating revenue, payments, and financial services d

istribution. Paytm’s stock currently trades at ₹1,136.20, down 2.73% intraday, but remains up 47.20% year-on-year.

Broker Confidence Boosts Paytm’s Outlook

Jefferies’ buy rating reflects optimism in Paytm’s market position and growth trajectory. The target price of ₹1,450 represents upside potential of nearly 28% from current levels, signaling broker confidence in the company’s performance and expansion plans.

Q3 FY26 Financial Performance

Paytm reported operating revenue of ₹2,194 Cr in Q3 FY26, up 20% year-on-year. Payments services revenue rose 21% to ₹1,284 Cr, while distribution of financial services revenue jumped 34% to ₹672 Cr. Net payment revenue increased 25% to ₹613 Cr. Contribution profit reached ₹1,249 Cr, with the contribution margin rising to 57%. EBITDA stood at ₹156 Cr with a margin of 7%, and PAT increased to ₹225 Cr. Total cash reserves remained robust at ₹12,882 Cr, providing flexibility for future growth.

Market Expansion and Licenses Drive Growth

Paytm’s consumer UPI GMV rose 35% in the past nine months, outpacing the industry’s 16% growth. Merchant device subscriptions reached 1.44 crore, up 27 lakh YoY. The number of customers using Paytm’s financial services climbed from 5.9 lakh to 7.1 lakh. Additionally, the company received all three key payment licenses from the RBI—covering online, offline, and cross-border payments—allowing it to onboard online merchants post-license acquisition.

Future Outlook

Paytm expects other income to decline from Q4 FY26 due to reinvestment at lower yields and growth in the MTF book. Starting FY27, income tax will apply to ‘Other Income,’ mainly interest, although operating profits will continue to offset prior period losses.

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