Why did One 97 Communications, operator of Paytm jump 10% post Budget?

One 97 Communications, parent company of Paytm, shares jumped 9.4 per cent on the BSE, registering the day’s high at ₹1,244.05 per share. The buying on the counter came after the budgeted allocation for low-value, peer-to-merchant (P2M) UPI transactions was increased to ₹2,000 crore in the financial year 2026-27 (FY27) from ₹437 crore in FY26.  

At 1:52 PM, Paytm's share price was trading 3.6 per cent higher at ₹1,178 per share on BSE. In comparison, BSE Sensex slipped 0.85 per cent at 81,571.59.  

According to the Budget document, the allocation to be disbursed among banks and fintechs in FY26 has been revised to ₹2,196 crore.  CATCH STOCK MARKET UPDATES TODAY LIVE 

 

That apart, 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. 

Post results, Kranthi Bathini, director of equity strategy, WealthMills Securities, said that Paytm is turning profitable now, so existing investors can ‘hold’ and ‘buy on dips’ for the medium to long term.  

He added: However, the stock looks fully priced in.  ALSO READ | Apex Frozen, Waterbase, Zeal Aqua rise up to 8% post Budget presentation 

Global brokerage Jefferies maintained 'Buy' with a target of ₹1,450 per share on Paytm. According to the brokerage, Paytm's profit for the December quarter was a 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.