Global brokerage firm Jefferies has reaffirmed its “Buy” rating on One 97 Communications Ltd, commonly known as Paytm, asserting that the company’s growth trajectory and profitability will remain resilient despite recent regulatory actions affecting its affiliate, Paytm Payments Bank Ltd (PPBL).
Jefferies has set a price target of ₹1,350 for Paytm’s shares, reflecting an anticipated upside of 18%. In its latest analysis, the brokerage highlighted that Paytm had executed significant structural changes over the past two years in response to the regulator’s 2024 restrictions placed on PPBL. These changes included the closure of the banking-related wallet business, the migration of UPI transactions to other partner banks, the termination of inter-company agreements, and the write-off of its investment in the banking firm.
Following actions by the central bank, PPBL’s board underwent a complete overhaul, including the appointment of a new chief executive, as noted in the report. Jefferies emphasized that the structural modifications had been thoroughly executed, meaning the cancellation of PPBL’s license would have little incremental impact on Paytm; the company’s services can continue to function independently of the banking entity.
Looking ahead, Jefferies projects that Paytm will achieve a compound annual growth rate (CAGR) of around 22% from FY26 to FY28, propelled by robust growth in its financial services distribution sector, which is expected to expand by approximately 28%, alongside continuous growth in its payments division.
The report further indicates a clear path to profitability, forecasting that Paytm’s net profit after tax (PAT) could approach ₹1,700 crore by FY28. It anticipates that contribution margins will remain in the range of 55-56%, with adjusted EBITDA margins improving to 16% by the end of FY28.
Jefferies concluded that Paytm’s business model is shifting into a phase characterized by scale-driven efficiencies, which are likely to enhance margin expansion, supported by ongoing growth in both merchant payments and financial services. Maintaining its “Buy” rating, Jefferies positions Paytm as a company that has successfully completed a structural reset, with its core operations fully functional and well-positioned for sustained growth and profitability in the coming years.
Published on April 27, 2026.
