Jefferies has maintained its buy rating on Paytm, while cutting its target price to ₹1,450 per share from ₹1,600, following changes to near-term earnings assumptions.
The brokerage highlighted that the PIDF scheme was not rolled over by the RBI, which has implications for incentive income — a key contributor to Paytm’s EBITDA. As a result, Jefferies has cut EBITDA estimates by 8–14% to reflect the absence of these incentives.
Despite the downward revision to earnings estimates, Jefferies emphasised that core business traction remains strong, supported by improving monetisation across payments, lending and merchant services. The brokerage believes Paytm’s underlying operating momentum continues to improve, even as incentive-linked income moderates.
Jefferies reiterated that while near-term earnings visibility has softened, the structural growth story and operating leverage remain intact, justifying the continuation of its buy rating.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
