Goldman Sachs Maintains Buy Rating on Paytm with ₹1,400 Target Price Despite RBI License Cancellation
Goldman Sachs maintains its Buy rating on Paytm with a ₹1,400 target price despite RBI's payments bank license cancellation. The brokerage views the regulatory action as having no financial impact due to ring-fenced operations, while highlighting strong business fundamentals including 26% GMV growth, market share gains, and positive traction in postpaid and loan distribution services, though acknowledging near-term sentiment risks.
27Apr 26
Analysts Maintain Positive Outlook on Paytm Despite RBI License Cancellation
Leading brokerages Bernstein and Jefferies maintain positive outlook on Paytm following RBI's cancellation of PPBL license, with target prices of ₹1,500 and ₹1,350 respectively, emphasizing that impact is limited due to prior wallet shutdown, UPI migration, completed write-offs, and governance reset, while core Paytm services continue unaffected.
Paytm Clarifies No Business Links With PPBL, Confirms 2024 Investment Already Written Down
Paytm has clarified that it maintains no business relationships with PPBL and has confirmed that its 2024 investment in the payments bank was already written down in company records. The statement provides transparency on the company's current operational and financial relationship with PPBL.
Jefferies Maintains Buy Rating on Paytm with Target Price of Rs 1350
Jefferies maintains Buy rating on Paytm with revised target price of Rs 1350 (down from Rs 1400), expecting ~20% revenue growth and EBITDA margin expansion through operating leverage, network expansion, faster loan origination, and new segments. Despite near-term concerns including 20-30% YTD stock decline and contribution sensitivity potentially impacting adjusted EBITDA by ~9-6%, the brokerage remains optimistic about long-term growth prospects.
Paytm Parent Seeks RBI Relief in Rs 611-Crore FEMA Case
One97 Communications Ltd, Paytm's parent company, has filed a compounding application with the Reserve Bank of India (RBI) to settle a case involving alleged violations of the Foreign Exchange Management Act (FEMA) worth Rs 611.00 crore. This move aims to resolve the matter directly with the RBI, potentially avoiding formal adjudication proceedings by the Enforcement Directorate. The company seeks to expedite the resolution process, potentially reduce penalties, and demonstrate regulatory compliance. The outcome could significantly impact One97 Communications and Paytm, potentially improving their regulatory standing and investor confidence.
12Jun 25
Paytm Shares Slide 8% in Three Sessions Amid Stock Option Grants
One 97 Communications Ltd., Paytm's parent company, experienced an 8% stock decline over three trading sessions, opening 10% lower on Thursday. This follows a 13.66% surge over eight sessions. The company approved 23,70,790 stock options for eligible employees while 3,46,746 options lapsed. These developments occur amidst stock price consolidation and market volatility in the Indian fintech sector.
12Jun 25
Paytm Stocks in Focus as Government Clarifies No MDR Charges on UPI Transactions
The Indian government has clarified that there are no plans to impose Merchant Discount Rate (MDR) charges on Unified Payments Interface (UPI) transactions. This statement dispels recent rumors and reaffirms the zero-MDR policy for UPI payments. The clarification is particularly significant for digital payment companies like One 97 Communications (Paytm), as it ensures the continued growth of the digital payments ecosystem in India without additional transaction costs.
One97 Communications, Paytm's parent company, reported a net loss of Rs 544.60 crore in Q4, mainly due to a one-time ESOP expense. Revenue increased by 5.89% to Rs 2,135.30 crore. Despite the loss, the company's stock has seen a 177% return over the past year. Goldman Sachs acquired a 0.58% stake, while Antfin Netherlands Holding BV reduced its position by 4%.
09Jun 25
RBI Mandates LSPs to Disclose Digital Lending Guidelines Portfolio
The Reserve Bank of India (RBI) has issued a new directive requiring Large Significant Providers (LSPs) to publish details of their Digital Lending Guidelines (DLG) portfolio. This move could impact fintech companies, including One 97 Communications, the parent company of Paytm. The mandate aims to enhance transparency in the digital lending space and may lead to increased compliance costs, changes in market perception, and shifts in the competitive landscape for fintech companies. The regulation signifies growing focus on regulating the digital lending sector, potentially reshaping the digital financial services ecosystem in India.
06Jun 25
RBI Mandates Digital Lending Portfolio Disclosure for Paytm and Other LSPs
The Reserve Bank of India (RBI) has directed License Service Providers (LSPs), including One 97 Communications Ltd. (Paytm's parent company), to publicly disclose details of their Digital Lending Guidelines (DLG) portfolio. This move aims to enhance transparency in the digital lending sector, provide clarity to consumers and regulators, and improve scrutiny of lending operations. The directive applies to all LSPs in the digital lending space, potentially impacting the entire fintech ecosystem and strengthening consumer protection measures.