Paytm shares rally over 3% after Goldman Sachs says EBITDA margin will more than double in 4 years; stock up 42% in 1 year

Goldman Sachs, as per news reports, said that the company's EBITDA margin will more than double over the next 3-4 years and that Paytm’s cost control has been a big positive surprise.

It sees further recovery in market share.

Paytm share price trend

Data show that the shares of Paytm have seen a consistent rally. The stock has gained 4% in the past five sessions and nearly 55% in the past six months.

Year-to-date (YTD), the stock has risen over 33.5%, and over the past 12 months, shares have advanced 42.5%.

What anlysts said post Q2

Earlier this month, a PTI report had said that the Noida-based payments major's drive towards sustained profitability has started to show in market sentiment, with multiple analysts acknowledging this shift and turning incrementally positive on the company over the past few quarters.

Recording profits for a second straight quarter, this consistency has not only strengthened its financial fundamentals but also led the market to steadily recognise its strong earnings potential, driving a multi-quarter re-rating in its stock by several leading brokerages, including Jefferies and Bernstein, among others.

With this improving outlook, analysts indicate that the rerating cycle may still have room to run, as Paytm's valuation remains conservative compared to large internet peers such as Nykaa, FirstCry, PB Fintech, and Zomato.

Despite having one of the strongest PAT and revenue trajectories among major internet stocks, Paytm continues to command a market capitalisation of about ₹86,100 crore compared to PB Fintech's ₹89,000 crore and Zomato's ₹3.02 lakh crore.

With profitability deepening and earnings visibility strengthening through FY26-FY28, analysts argue that Paytm has scope to be valued better, especially against the significantly higher valuations commanded by most of its internet-sector counterparts.

Analysts cited Paytm's strong operating performance, disciplined cost control, and growing contribution from AI-led products as the key enablers of its profitability and scalability.

The Reserve Bank of India granted in-principle approval to Paytm Payments Services Limited in August to operate as an online payment aggregator.

It must be noted that this is the final approval from the RBI.

In August 2025, Paytm Payments Services received the 'in-principle' approval from the RBI to operate as an online payment aggregator.

The move also removes the restriction on Paytm Payments Services Limited from onboarding new merchants, which was imposed on the company on November 25, 2022.