Paytm hits over 4-year high; stock zooms 52% from March low

Paytm reported a 79% YoY jump in Q1 net profit at ₹220 crore backed by 27.6% growth in revenue from operations. The management expects FY27 revenue growth to exceed the 22% delivered in FY26.

One 97 Communications (Paytm) share price movement

 

Share price of the One 97 Communications (Paytm) hit an over four-year high at ₹1,437, soaring 7 per cent on the BSE in Monday’s intra-day deals. 

 

The stock price of the fintech company quoted at its highest level since December 2021. It bounced back 52 per cent from its 52-week low of ₹947.10 touched on March 30, 2026. The stock hit a record high of ₹1,961.05 on November 18, 2021.

 

Pioneer of the mobile payments, QR and Soundbox revolution in India, Paytm is India’s leading payments and financial services distribution company.

 

At 02:15 AM, Paytm quoted 6 per cent higher at ₹1,419, compared to 0.83 per cent rise in the BSE Sensex. A combined 5.69 million equity shares changed hands on the NSE and BSE.

 

Paytm – Q1 results

 

Paytm reported a consolidated net profit of ₹220 crore for the first quarter of 2026–27 (Q1FY27), up 79 per cent from ₹123 crore in the corresponding quarter of the previous year (Q1FY26). Sequentially, net profit rose 19.5 per cent from ₹184 crore in Q4FY26.

 

The company generated ₹2,448 crore in revenue from operations in Q1FY27, up 27.6 per cent from ₹1,918 crore in Q1FY26. On a quarter-on-quarter basis, this was up 8.1 per cent from ₹2,264 crore.

 

Meanwhile, the board emphasised continued focus on compounding growth and profitability for shareholder value creation, and decided not to proceed with the bonus issue.

 

“After evaluating the bonus issue proposal from the perspective of long-term shareholder value and due deliberation, the board was of the view that the company should continue to focus on further compounding growth and profitability for shareholder value creation. Accordingly, the board decided not to proceed with the said proposal at this time,” Paytm said.

 

Further, Paytm's board approved a proposal to seek shareholders' approval to revise the utilisation of its remaining initial public offering (IPO) proceeds. It plans to use the unutilised ₹1,686 crore to fund customer and merchant acquisition, as well as new business initiatives, acquisitions, and strategic partnerships, while extending the utilisation deadline to March 31, 2029.

 

Motilal Oswal Financial Services view on Paytm

 

Paytm reported a strong quarter, driven by robust revenue growth on healthy Gross Merchandise Value (GMV) expansion and continued market share gains in payments. Management expects FY27 revenue growth to exceed the 22 per cent delivered in FY26, while indirect expenses likely to grow at a slower pace than revenue, analysts at Motilal Oswal Financial Services (MOFSL) said after the Q1 results.

 

Principal Product Manager (PPM) improved to 4bp (vs. 3bp earlier), aided by a higher mix of profitable MDR (Merchant Discount Rate) bearing instruments, including credit cards on UPI and EMI transactions. The company remains on track toward sustainable profitability, supported by operating leverage and resilient GMV growth. Contribution margin came in at 55.1 per cent, impacted by promotional and cash back incentives, though improving trends in the lending business should support margins ahead, the brokerage firm said. However, MOFSL retained a ‘Neutral’ rating on the stock with a target price of ₹1,475 per share.  ======================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.