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

Paytm shares fell 1.3% to ₹1,633 in Tuesday morning trade on October 27, 2026, despite reporting strong Q2 FY27 results. The stock initially gained around 1% before reversing its gains. However, brokerages remain optimistic about the company's growth prospects, supported by rising revenue, improving margins and strong profitability.

Paytm's parent company, One 97 Communications, reported a net profit of ₹226 crore for the September quarter, compared with ₹21 crore in the same quarter last year. Revenue increased 28.5% year-on-year to ₹2,648 crore, while EBITDA rose 91.5% to ₹270 crore. Its EBITDA margin also improved to 10.2%, compared with 6.8% a year earlier.

Bernstein maintained its Outperform rating with a target price of ₹2,200, indicating approximately 33% upside. Jefferies retained its Buy rating with a target of ₹2,150, while Citi raised its target price to ₹1,940 from ₹1,560. Goldman Sachs maintained its Buy rating with a revised target of ₹2,010.

Brokerages also highlighted the potential benefits of proposed UPI merchant discount rate (MDR) charges, which could improve Paytm's payment processing margins.

Disclaimer: Brokerage targets are estimates, not guaranteed returns. This article is for informational purposes only and does not constitute investment advice.