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Paytm
Global brokerage firm Jefferies has reiterated its "Buy" rating on Paytm (One 97 Communications Ltd), stating that the company's growth engine and profitability will remain intact despite regulatory action on its associate entity Paytm Payments Bank Ltd (PPBL). The company has maintained its price target of Rs 1,350, implying an 18 per cent upside. In its latest report, Jefferies stated that Paytm had already undertaken comprehensive structural changes over the past two years, following the regulator's 2024 restrictions on PPBL. These include shutting down the wallet business tied to the bank, migrating UPI handles to other partner banks, terminating inter-company agreements, and writing off its investment in the banking entity. Post the central bank's action, PPBL's board was reset, with a new chief executive being brought in, the brokerage firm noted. With these structural changes already complete, the brokerage said the licence cancellation itself has a low incremental impact on
One 97 Communications Ltd, which operates the Paytm brand, has become a majority Indian-owned and controlled company after domestic investors increased their stake to 50.3 per cent as of March-end 2026. The shift marks a structural change in ownership for the fintech firm, with domestic shareholding rising steadily in recent quarters, reflecting growing investor confidence. Domestic institutional investors raised their stake to a record 23.1 per cent in the March quarter, up 2.8 percentage points sequentially and 9.1 percentage points from a year earlier, according to regulatory filings. Mutual funds led the increase, with their holdings climbing to 16.6 per cent from 14.3 per cent in the previous quarter, while the number of funds investing in the company rose to 41 from 36, with entities, such as Motilal Oswal Mutual Fund, Mirae Asset and Bandhan Mutual Fund, continuing to expand their shareholding. Insurance companies also added to their positions, taking their combined stake to
Noida-based payments major Paytm has pulled ahead in its monetisation journey compared to peers, driven by a more diversified mix across high-monetisation categories such as merchant lending and financial services helping it improve profitability, positioning it strongly within India's evolving fintech landscape, according to a BofA Global Research report. BofA says Paytm continues to extend leadership in medium to high-monetisation segments such as merchant payments and lending, placing it ahead of rivals with a diversified revenue mix. The report notes that while consumer payments remain a low monetisation, merchant payments and lending and financial services distribution continue to be medium to high monetisation segments for payment platforms. In this context, Paytm's revenue mix stands out, with a significantly lower dependence on consumer payments and a higher contribution from merchant payments and financial services distribution. This diversified mix has enabled stronger ..
India's digital payments ecosystem is moving beyond a scale-led narrative, with merchant payments emerging as the core driver of revenues and accounting for nearly three-fourths of the industry's net revenue pool, according to Bernstein's latest sector primer. The brokerage estimates the current payments revenue pool at roughly Rs 25,000 crore in gross revenues, or about Rs 15,000 crore in net revenues. This is projected to expand to nearly Rs 65,000 crore in gross revenues and approximately Rs 38,500 crore in net revenues by FY30 as digital adoption deepens and monetisation improves across payment layers. Merchant ownership allows platforms to monetise across multiple layers payment processing fees, online gateway charges, device rentals, credit card acceptance and credit distribution. Models with stronger merchant ecosystems therefore generate structurally higher yields. Within this merchant-led framework, Bernstein identified Paytm as a monetisation leader. The brokerage estimate