Analysts Boost Paytm Targets Amid Strong Payment Volumes and Cost Discipline

Multiple research houses have raised their price expectations for Paytm after the company posted a robust first‑quarter report for FY27. Berkshire kept its "outperform" rating and set a target of INR 1,500, while Jefferies lifted its target to INR 1,600 and MK to INR 1,700, both retaining "buy" calls.

The standout driver was the Financial Services Distribution segment, which posted a 45 per cent YoY revenue rise to INR 814 crore. Improved cross‑selling of credit and other financial products underpinned this growth.

Overall revenue expanded 28 per cent YoY, with indirect expenses increasing only 6 per cent, resulting in a 182 per cent surge in EBITDA. Excluding the PIDF incentive, the EBITDA growth approaches a ten‑fold increase.

Cost discipline impressed analysts. Platform‑related spend dipped 3 per cent YoY, even as the firm continued to pour capital into artificial intelligence and new product development, suggesting a durable upside.

The payments business delivered solid results: merchant GMV climbed 31 per cent YoY to INR 7.1 lakh crore, and consumer UPI transaction value jumped 45 per cent, far exceeding industry averages. Monthly active users rose from 7.4 crore to close to 8 crore, reflecting deeper user interaction.

Lending‑related metrics such as expected credit loss and repeat borrower figures remained healthy, reinforcing confidence in the company's risk profile.

Analysts highlighted three core positives: accelerating payment volumes, strict cost control, and rapid expansion of the financial‑services line. They project that the momentum will persist through FY29, driven by continued revenue growth and operating leverage that should lift margins further.