Paytm shares dip 0.92% despite FY2026 Q1 beat as Citi lifts target to Rs 1,560 and CLSA keeps Rs 1,050
AI Market Summary
Paytm reported a strong FY26 Q1 earnings beat with faster revenue growth, sharply higher net profit, and EBITDA ahead of expectations, aided by lower cloud costs and stronger loan distribution. However, the stock slipped on the day as broker views diverged: Citi raised its target on potential UPI MDR benefits, while CLSA stayed bearish citing already-priced optimism and risk of higher operating costs and weaker take rates.
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● Low
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● Neutral
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Paytm (One 97 Communications) reported a strong FY2026 first quarter, with net profit up 79% year on year to Rs 220 crore and revenue from operations rising 28% to Rs 2,448 crore, while EBITDA came in at Rs 200 crore. Despite the beat, the stock fell 0.92% in early trade to Rs 1,335.10. Citi reiterated a Buy rating and raised its target price to Rs 1,560, while CLSA maintained an Underperform rating with a target of Rs 1,050. The brokerages differ on the potential impact of UPI merchant discount rate (MDR) policy and the sustainability of operating costs.
