Jefferies, YES Securities and Dolat Capital raise Paytm’s target price post robust earnings, margin expansion and first-ever profitable quarter. Analysts cite improving operating leverage, expanding financial services and disciplined cost structure as long-term growth catalysts
Paytm’s robust Q1FY26 performance across key financial metrics has had analysts voicing strong optimism towards the Noida-based payments leader.
Jefferies, YES Securities, and Dolat Capital have upgraded their 12-month target prices, showing confidence in Paytm’s long-term profitability and growth strategy.
Jefferies has put a ‘Buy’ rating on Paytm, raising its target price from ₹900 to ₹1,250. The brokerage cited the strong performance in core businesses. “We raise EBITDA estimates for FY26–28, led by slightly higher contribution margins and operating leverage,” Jefferies noted, projecting a 24% revenue CAGR over FY25–28.
YES Securities reaffirmed its ‘ADD’ rating and increased its 12-month target price to ₹1,200 from ₹1,025. The firm values Paytm at 35x FY28 earnings, supported by a strong EPS CAGR of 28% between FY28 and FY31.
YES highlighted Paytm’s steady move toward profitability and strength of its payments business. “Payments business is already profitable on a standalone basis without MDR on UPI and will be a large profitability driver when MDR-bearing form factors grow. Net payments margin is going to rise because of a rise in credit cards, EMI and loyalty points,” said the report.
Dolat Capital also remains bullish, raising its target price from ₹1,400 to ₹1,200 while maintaining its ‘Buy’ rating. The firm noted that Q1FY26 marked a key milestone, Paytm’s first quarter of profit at both EBITDA and PAT levels, achieved without any one-off gains. This revised valuation reflects the brokerage’s positive view of Paytm’s structural profitability journey, operating leverage, and robust performance in its core business segments.
The brokerage raised FY26E and FY27E earnings estimates by 1% and values the company at 45x EV/EBITDA and ~63x PER on FY27E earnings.
As Paytm expands its reach in payments, lending, and merchant services, analysts see it building a stronger foundation for long-term growth and profitability.
*Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.
Paytm’s robust Q1FY26 performance across key financial metrics has had analysts voicing strong optimism towards the Noida-based payments leader.
Jefferies, YES Securities, and Dolat Capital have upgraded their 12-month target prices, showing confidence in Paytm’s long-term profitability and growth strategy.
Jefferies has put a ‘Buy’ rating on Paytm, raising its target price from ₹900 to ₹1,250. The brokerage cited the strong performance in core businesses. “We raise EBITDA estimates for FY26–28, led by slightly higher contribution margins and operating leverage,” Jefferies noted, projecting a 24% revenue CAGR over FY25–28.
YES Securities reaffirmed its ‘ADD’ rating and increased its 12-month target price to ₹1,200 from ₹1,025. The firm values Paytm at 35x FY28 earnings, supported by a strong EPS CAGR of 28% between FY28 and FY31.
YES highlighted Paytm’s steady move toward profitability and strength of its payments business. “Payments business is already profitable on a standalone basis without MDR on UPI and will be a large profitability driver when MDR-bearing form factors grow. Net payments margin is going to rise because of a rise in credit cards, EMI and loyalty points,” said the report.
Dolat Capital also remains bullish, raising its target price from ₹1,400 to ₹1,200 while maintaining its ‘Buy’ rating. The firm noted that Q1FY26 marked a key milestone, Paytm’s first quarter of profit at both EBITDA and PAT levels, achieved without any one-off gains. This revised valuation reflects the brokerage’s positive view of Paytm’s structural profitability journey, operating leverage, and robust performance in its core business segments.
The brokerage raised FY26E and FY27E earnings estimates by 1% and values the company at 45x EV/EBITDA and ~63x PER on FY27E earnings.
As Paytm expands its reach in payments, lending, and merchant services, analysts see it building a stronger foundation for long-term growth and profitability.
*Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.
