Archive · 23 Jul 2025
Jefferies Upgrades Paytm on Profitability and Growth Outlook
Paytm, a financial technology company, is doing better!
Experts at Jefferies think the company's stock will go up.
This is because Paytm made a profit and saw improvements in its financial performance.
They are growing the number of people using their services and the total value of transactions.
Although some costs are going down, analysts expect things to stabilize in the coming quarters.
The stock has also performed well recently, gaining a good return for investors.
Paytm's share price rose 3% intraday after reporting a profit of Rs 123 crore in Q1.
Jefferies upgraded Paytm's parent company, One97 Communications, to 'Buy' and raised the target price.
Paytm's Q1FY26 EBITDA of Rs 70 crore exceeded estimates, aided by lower DLG costs and operating leverage.
Monthly Transacting Users (MTU) grew by 3% sequentially, and Gross Merchandise Value (GMV) grew by 6% QoQ.
Revenue grew 28%, led by financial services; marketing services lagged.
- Who
- Jefferies, a brokerage firm, upgraded One97 Communications, the parent company of Paytm.
- What
- Jefferies upgraded Paytm's stock and raised the target price after positive financial results.
- When
- The upgrade came after Paytm reported a profit in Q1 and strong financial metrics.
- Where
- The company operates in the financial technology sector.
- Why
- Due to revenue growth, operating leverage, and improved financial performance.
Analysts
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Stock Rating
Analysts
Positive assessment of Paytm's performance.
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- Company
- Paytm (One97 Communications)
- Brokerage Upgrade
- Jefferies to 'Buy' from 'Hold'
- Target Price
- Rs 1,250
- Upside Potential
- 19%
- Q1 Profit
- Rs 123 crore
- Q1FY26 EBITDA
- Rs 70 crore
- MTU Growth (QoQ)
- 3%
- GMV Growth (QoQ)
- 6%
- Revenue Growth
- 28%