Paytm Share Price: A lot of volatility was seen in the shares of fintech company Paytm (One 97 Communications) on Tuesday morning. After strong second quarter (Q2 FY27) results, the stock rose nearly 1 percent at the market open. But this happiness did not last long. The stock lost its early gains due to selling pressure. In morning trade, the stock fell 1.3 percent to Rs. was 1,633. A day earlier, on Monday, the stock closed up 2.4 percent on anticipation of the results.
The main reason for this fall in Paytm shares was market slowdown with profit booking at higher levels. In fact, the stock rose 2.4 percent on Monday, just ahead of quarterly results. Tuesday morning also opened with a 1 percent gain, but after that pressure was seen across the stock market (Sensex-Nifty). As market sentiment soured, investors started booking profits at higher prices, causing the stock to lose its initial gains and slip into the red.
If we look at this year’s figures, Paytm has not disappointed its investors. The Nifty-50 has fallen 13 percent so far in 2026, while Paytm’s share has gained 26.5 percent over the same period. Currently the total market cap of the company is around Rs 1.05 lakh crore.
The company’s profit has increased more than 10 times in the second quarter
Share prices may have dipped slightly, but Paytm’s quarterly results have been stellar. In the second quarter of the current financial year (Q2 FY27), the company posted a net profit of Rs. 21 crore to Rs. 226 crores. During this period the revenue of the company also increased by 28.5 percent to Rs. 2,648 crores. The company has also won on the operating profit (EBITDA) front. It rose by 91.5 percent to Rs. 270 crores. At the same time, operating margin increased to 10.2 percent from 6.8 percent last year.
Leading brokerage firms expressed full confidence in the stock
After the company’s strong financial results, major brokerage firms in India and abroad have placed their trust in Paytm. Brokerage firm Bernstein has maintained its ‘outperform’ rating on the stock. For this the firm has paid Rs. A target price of 2,200 has been given. This is about 33 percent higher than Monday’s closing price. Bernstein believes that the company is directly benefiting from the improvement in payment margins, apart from earnings from financial services.
On the other hand, Jefferies has also advised to buy the stock. Jefferies has set its target price at Rs. 2,150 has been fixed. Apart from this, Citi also maintained its ‘Buy’ rating with a target price of Rs. 1,560 to Rs. 1,940 have done. Citi expects the company’s net payment margin to strengthen significantly in the coming days.
UPI’s MDR rules will change the game after Diwali
The biggest hope for Paytm’s future is related to the UPI Merchant Discount Rate (UPI MDR). Brokerage firm Goldman Sachs also maintained a buy rating on the stock, though it raised its target price to Rs. 2,070 to Rs. 2,010 has been done. Goldman Sachs says that implementation of the proposed UPI MDR could increase Paytm’s EBITDA by 40 percent. According to the brokerage, the impact of these big gains is yet to be fully reflected in the share price.
This new UPI MDR rule is going to be implemented after Diwali. Paytm itself believes that with the introduction of this rule, its gross payment processing margins will improve by around 2.5 basis points. According to the company, the full impact of the rules will stabilize the business for two to three quarters after implementation. Anticipation of this new rule along with strong profits have kept brokerage firms bullish on Paytm shares.
