Bernstein has maintained its Outperform rating on Paytm, setting a target price of ₹1,100 per share, which implies a modest upside from the current market price of ₹1,053.10.
The brokerage noted that Q1FY26 marked a significant milestone for Paytm as it reported a net profit — achieved without any one-off gains. The improvement in profitability was driven by reductions in ESOP-related expenses and lower marketing costs.
Bernstein emphasized that future profitability will depend on the company’s ability to deliver consistent sequential revenue growth. While the current quarter shows promising signs, sustained earnings performance will be key for long-term re-rating.
Disclaimer: The brokerage views expressed above are those of Bernstein. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
