Global brokerage Bernstein highlighted Paytm’s financial services distribution as the standout performer in the June quarter, with a 45% revenue increase to Rs 814 crore. The brokerage maintained an ‘Outperform’ rating for Paytm with a price target of Rs 1,500. Paytm’s Q1 FY27 results supported the investment thesis of “non-linear profit growth” driven by revenue growth and operating leverage.
Bernstein praised Paytm’s cost discipline despite strong growth, noting a 3% decrease in platform-building costs year on year. Payment volumes remained robust, with merchant GMV up 31% to Rs 7.1 trillion and consumer UPI payment value growing 45%. The brokerage also highlighted the growth in monthly transacting users to about 80 million.
Analysts Jefferies and Emkay also expressed optimism, raising their target prices for Paytm. Jefferies increased its target to Rs 1,600, citing strong growth momentum, while Emkay raised its target to Rs 1,700 and pointed to a long growth runway ahead for Paytm’s financial services business. Both brokerages foresee sustained revenue growth and margin gains through FY29.
