Shares of fintech player One97 Communications, parent of Paytm, rose 6% in early trading on Thursday, 7 May, after the company posted a profit for the fourth quarter in a row, signalling a sustained turnaround.
Paytm share price surged as much as 6.24% to hit the day’s high of ₹1,180 on the National Stock Exchange (NSE). The stock rose for the second day and remains in the green for the second month in a row.
Paytm Q4 Results
The digital payments firm posted consolidated net profit of ₹184 crore for the quarter ended March 31, compared with a loss of ₹540 crore a year earlier.
In the year-ago quarter, its results were affected by a one-time expense on charges related to CEO Vijay Shekhar Sharma giving up his employee stock options.
Revenue from operations rose 18.4% to ₹2264 crore, driven by a 21% increase in payment services and a 38% rise in financial services distribution revenue.
The company also signalled a faster growth path for the fiscal year 2026-27 (FY27), aided by market share gains in the merchant and consumer payments and distribution of its financial services. Furthermore, it sees margins to expand on the back of lower indirect expenses.
“Revenue growth in FY 2027 is expected to be higher than the 22% delivered in FY 2026, and indirect expenses will grow meaningfully slower than revenue,” Paytm said in a statement.
Abhinav Tiwari, Research Analyst at Bonanza, said that revenue cadence indicates that throughput-driven growth in payments and financial services has held firm even as treasury-led other income normalises.
He added that the cost line tells the most powerful story of FY26. Total expenses for the full year contracted 6.3% to ₹8,521 crore from ₹9,096 crore.
Paytm shares: Should you buy?
Goldman Sachs said that Paytm’s revenue growth in 4QFY26 and forward outlook for FY27 were ahead of our expectations.
The brokerage said, given its expectation of revenue growth to be led by financial services, bottoming of the marketing services segment (+8% YoY revenue growth in FY27 vs. -18% in FY26), and rising share of payments revenue from higher take rate products, it forecasts EBITDA margin to reach 9.6%/14.3% in FY27E/FY28E, with a 50%+ FY26-FY30E EBITDA CAGR for Paytm.
However, it lowered the FY27E/FY28E EPS estimates by 4-5%, largely due to lower interest income. It retained its Buy call with an unchanged 12-month target price of ₹1,400 for Paytm, suggesting 26% upside.
“We see scale-up of recently launched postpaid product, further gains in market share, and new launches (such as wallets) as potential catalysts for the stock.”
Commenting on the technical outlook for Paytm shares, Anshul Jain, Head of Research at Lakshmishree, said that Paytm has confirmed a breakout from a bullish slingshot pattern, accompanied by a strong gap-up move and alignment of the 10-, 20-, and 50-day EMAs, signalling a decisive shift in momentum.
“The overlapping moving averages indicate strong trend compression followed by expansion, often seen at the start of impulsive rallies. Momentum oscillators are also turning sharply bullish, reinforcing the strength of the breakout. Price structure suggests sustained accumulation and improved participation. The stock is now heading toward the critical resistance zone of 1230–1280, where some supply pressure may emerge. As long as the stock sustains above the EMA cluster, the bullish momentum is likely to remain intact,” he added.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
