Paytm Shares Surge as Goldman Sachs and Citi Maintain Bullish Outlook After Strong FY26 Turnaround
Shares of One 97 Communications, Paytm's parent company, climbed nearly 2% on May 8, 2026, as investors celebrated the fintech's first-ever full year of profitability. Global brokerages including Goldman Sachs, Citi, and Bernstein have retained "Buy" or "Outperform" ratings, citing strong revenue momentum and market share gains in the payments business despite regulatory shifts.
Shares of Paytm traded with a firm "green" bias on Friday, rising 1.69% to reach an intraday high of ₹1,219.10. The stock’s upward move follows a massive turnaround in its financial health.
The digital payments major reported a consolidated net profit of ₹552 crore for the full financial year ended March 31, 2026 (FY26). This is a dramatic shift from the ₹663 crore loss it posted only a year ago.
Paytm's core business is now firing on all cylinders. Revenue from operations for the full year surged 22.2% to ₹8,437 crore.
While the fourth quarter (Q4) saw a slight moderation in margins, the company reported a net profit of ₹183 crore for the March quarter alone. Investors were particularly impressed by the 6% operating profit margin, a significant recovery from the deep losses seen in previous years.
Brokerages Go Bullish
Top-tier brokerages have quickly updated their "report cards" for the fintech giant, pointing toward a scalable and profitable future:
- Goldman Sachs: Labeled the results a "beat with a strong forward outlook." The firm expects EBITDA to grow at a CAGR of over 50% between now and 2030.
- Bernstein: Maintained an "Outperform" rating with a target price of ₹1,500. Analysts highlighted that Paytm’s UPI volumes grew 46% year-on-year, far outstripping the industry average.
- Jefferies: Noted that the company’s "operating leverage" is finally kicking in, which should drive margins even higher by FY28.
No NBFC License?
During the earnings call, Paytm CFO Madhur Deora clarified a key strategy: the company is not seeking an NBFC (lending) license.
Instead, Paytm will stick to its "partnership-led" model. By acting as a distributor for other banks rather than a lender itself, Paytm avoids credit risks while collecting healthy fees, a move that keeps the balance sheet “light and bright.”
Technically, Paytm is showing strong momentum. The stock is currently trading above its key short-term moving averages. With a market cap now crossing ₹77,000 crore, it remains a favorite for institutional investors looking for exposure to India’s digital economy.
Published By : Shourya Jha
Published On: 8 May 2026 at 11:16 IST