Paytm stock falls over 1% after Q2 results, pares early gains; brokerages see up to 33% upside

The stock had gained 2.4 percent on Monday, ahead of the earnings announcement. Paytm shares have risen 26.5 percent so far in 2026, outperforming the Nifty 50, which has declined 13 percent over the same period. The company's market capitalisation stood at approximately Rs 1.05 lakh crore. The decline came amid a subdued broader market. At 9:30 am, the Sensex was down 134.74 points, or 0.18 percent, at 73,472.01, while the Nifty slipped 17.55 points, or 0.08 percent, to 22,735.65.

Bernstein maintained its Outperform rating with a target price of Rs 2,200, implying approximately 33 percent upside from Monday's closing price. The brokerage highlighted strong financial services revenue growth, improving payment margins and sustained operating momentum. Jefferies retained its Buy rating with a target of Rs 2,150, citing operating efficiencies and expectations of additional revenue from UPI MDR implementation.

Citi raised its target price to Rs 1,940 from Rs 1,560, maintaining a Buy recommendation. It expects accelerating growth in financial services and improving net payment margins. Goldman Sachs maintained its Buy rating but lowered its target to Rs 2,010 from Rs 2,070. The brokerage expects the proposed UPI MDR to potentially increase Paytm's EBITDA by up to 40 percent, a benefit it believes is not fully reflected in the stock price.

Paytm reported a net profit of Rs 226 crore for Q2 FY27, compared with Rs 21 crore a year earlier, while revenue rose 28.5 percent to Rs 2,648 crore. EBITDA increased 91.5 percent to Rs 270 crore, with margins improving to 10.2 percent from 6.8 percent. Paytm expects the proposed UPI MDR, scheduled for implementation after Diwali, to improve its overall payment processing margin by approximately 2.5 basis points. The company expects the impact to stabilise within two to three quarters after implementation.