Paytm Share Price Surges 6% on Fourth Consecutive Quarter of Profitability, Fueling Speculation of Further Gain

Paytm Sees Strong Turnaround with Profit for Fourth Consecutive Quarter

Shares of fintech player One97 Communications, parent of Paytm, rose 6% in early trading on Thursday, 7 May, after the company posted a profit for the fourth quarter in a row, signalling a sustained turnaround. The stock surge as much as 6.24% to hit the day's high of ₹1,180 on the National Stock Exchange (NSE).

Paytm posted consolidated net profit of ₹184 crore for the quarter ended March 31, compared with a loss of ₹540 crore a year earlier. The company's results were affected by a one-time expense on charges related to CEO Vijay Shekhar Sharma giving up his employee stock options in the year-ago quarter.

Revenue Growth Drives Paytm's Turnaround

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Revenue from operations rose 18.4% to ₹2264 crore, driven by a 21% increase in payment services and a 38% rise in financial services distribution revenue. The company also signalled a faster growth path for the fiscal year 2026-27 (FY27), aided by market share gains in the merchant and consumer payments and distribution of its financial services.

Paytm sees margins to expand on the back of lower indirect expenses. The company expects revenue growth in FY 2027 to be higher than the 22% delivered in FY 2026, and indirect expenses will grow meaningfully slower than revenue.

Goldman Sachs Maintains Buy Call

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Goldman Sachs said that Paytm's revenue growth in 4QFY26 and forward outlook for FY27 were ahead of its expectations. The brokerage forecasts EBITDA margin to reach 9.6%/14.3% in FY27E/FY28E, with a 50%+ FY26-FY30E EBITDA CAGR for Paytm. However, it lowered the FY27E/FY28E EPS estimates by 4-5%, largely due to lower interest income. Goldman Sachs retained its Buy call with an unchanged 12-month target price of ₹1,400 for Paytm, suggesting 26% upside.

Technical Outlook Positive

Commenting on the technical outlook for Paytm shares, Anshul Jain, Head of Research at Lakshmishree, said that Paytm has confirmed a breakout from a bullish slingshot pattern, accompanied by a strong gap-up move and alignment of the 10-, 20-, and 50-day EMAs, signalling a decisive shift in momentum. The overlapping moving averages indicate strong trend compression followed by expansion, often seen at the start of impulsive rallies. Momentum oscillators are also turning sharply bullish, reinforcing the strength of the breakout.