Paytm shares slip 5% after posting Q3 results; here's what analysts suggest

One 97 Communications, parent company of Paytm, shares slipped 4.5 per cent in trade on BSE, logging an intra-day low at ₹1,115.1 per share. At 10:54 AM, Paytm’s share price was trading 2.73 per cent lower at ₹1,136.8 per share. In comparison, BSE Sensex was down 0.47 per cent at 82,181.13.

 

The selling pressure on the counter can be attributed to profit booking, according to Kranthi Bathini, director of equity strategy, WealthMills Securities.

 

"The stock has outperformed over the past six months. With markets trading in a narrow range, investors are increasingly adopting a 'buy-on-dips, sell-on-rallies' strategy, which is driving profit-taking in Paytm following its results," he said.  READ STOCK MARKET UPDATES TODAY LIVE

Paytm Q3 results recap:

In Q3, Paytm posted a consolidated net profit of ₹225 crore, as compared to a loss of ₹208 crore in Q3FY25. The Noida-based company recorded a net profit of ₹21 crore in Q2FY26.

 

The company appointed Founder Vijay Shekhar Sharma as managing director and chief executive officer (MD & CEO) of its subsidiary Paytm Payments Services Limited (PPSL) for the next five years.

Analysts’ views on Paytm 

Baithini said that Paytm is turning profitable now, so existing investors can ‘hold’ and ‘buy on dips’ for the medium to long term. 

 

He added: But at around ₹73,000 crore market cap, the stock looks fully priced in; the next few quarters and management guidance will be crucial.  Global brokerage Jefferies maintained 'Buy' with a target of ₹1,450 per share on Paytm. According to the brokerage, Paytm's profit for December quarter was tad ahead of estimates even as it included ₹12 crore of one-time labour code cost. Revenue rose by 20 per cent Y-o-Y, led by higher growth in financial services (loan origination), and contribution profit grew by 30 per cent (margin at 57 per cent). Lower indirect costs aided Ebitda and profit.   Bernstein maintained its 'Outperform' rating on Paytm with a target of ₹1,600. The brokerage said Paytm delivered a strong Q3FY26, strengthening the case for steady progress toward sustainable profitability, led by healthy gross merchandise value (GMV) growth, sharp acceleration in financial services revenue, disciplined cost control, and a sequential recovery in marketing revenue. Management also provided comfort that recent regulatory developments around rent-related payments and real-money gaming have had an insignificant impact, Bernstein noted.

 

Motilal Oswal Financial Services, in its report, said that Paytm reported a healthy quarter, largely in line with the estimates, supported by robust revenue growth and disciplined management, resulting in strong profit after tax (PAT) growth. The company continued to make healthy progress toward sustainable profitability and improving operating leverage, it noted.  ALSO READ | South Indian Bank shares crack 19% as CEO declines reappointment 

Further, the gross merchandise value (GMV) growth was healthy and robust. Contribution margin was strong at 57 per cent. The momentum in the financial services segment is expected to remain strong, aided by improving tailwinds in the unsecured segment. The recent development around the PIDF scheme is a key monitorable in the near term, and clarity around the same is crucial for the company’s earnings in the near term.  

 

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