Paytm Shares Surge as Goldman Sachs and Citi Maintain Bullish Outlook After Strong FY26 Turnaround

Shares of Paytm traded with a firm "green" bias on Friday, rising 1.69% to reach an intraday high of ₹1,219.10. The stock’s upward move follows a massive turnaround in its financial health.

The digital payments major reported a consolidated net profit of ₹552 crore for the full financial year ended March 31, 2026 (FY26). This is a dramatic shift from the ₹663 crore loss it posted only a year ago.

Paytm's core business is now firing on all cylinders. Revenue from operations for the full year surged 22.2% to ₹8,437 crore.

While the fourth quarter (Q4) saw a slight moderation in margins, the company reported a net profit of ₹183 crore for the March quarter alone. Investors were particularly impressed by the 6% operating profit margin, a significant recovery from the deep losses seen in previous years.

Brokerages Go Bullish

Top-tier brokerages have quickly updated their "report cards" for the fintech giant, pointing toward a scalable and profitable future:

• Goldman Sachs: Labeled the results a "beat with a strong forward outlook." The firm expects EBITDA to grow at a CAGR of over 50% between now and 2030.
• Bernstein: Maintained an "Outperform" rating with a target price of ₹1,500. Analysts highlighted that Paytm’s UPI volumes grew 46% year-on-year, far outstripping the industry average.
• Jefferies: Noted that the company’s "operating leverage" is finally kicking in, which should drive margins even higher by FY28.

No NBFC License? 

During the earnings call, Paytm CFO Madhur Deora clarified a key strategy: the company is not seeking an NBFC (lending) license.

Instead, Paytm will stick to its "partnership-led" model. By acting as a distributor for other banks rather than a lender itself, Paytm avoids credit risks while collecting healthy fees, a move that keeps the balance sheet “light and bright.”

Technically, Paytm is showing strong momentum. The stock is currently trading above its key short-term moving averages. With a market cap now crossing ₹77,000 crore, it remains a favorite for institutional investors looking for exposure to India’s digital economy.

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