Jefferies has raised its target price on Paytm to ₹1,420 while maintaining a buy rating after a management interaction that reinforced confidence in its profitability trajectory and growth opportunities. The brokerage noted management’s emphasis on how payment platforms have matured to a stage where they are delivering profits, with Paytm’s merchant franchise now standing at 45 million.
Its lending business continues to perform well, and new growth opportunities are emerging in products such as postpaid-on-UPI and wealth offerings. Jefferies said that if merchant discount rates (MDR) are introduced on UPI transactions, they would likely apply only to larger merchants, which could provide additional revenue upside.
Factoring in lower operating expenses, the brokerage raised its FY27–28 EBITDA estimates by 9–14%. Jefferies said Paytm’s strong franchise, product innovation, and disciplined cost management give it an edge as digital financial services scale further in India.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
