Paytm shares gain 4%; here is what analysts expect ahead for FY2027

One 97 Communications or Paytm shares gained 4% on Tuesday, as investors were now focusing on the way forward for the fintech major in the financial year 2026-27, after a healthy performance in the March quarter results.

Paytm shares surged 4.2% to their intraday high level of ₹1,152 on Tuesday, compared to ₹1,105 at the previous market close, according to the NSE website, with trading volumes surging past 1.3 million shares across both the stock exchanges.

Experts predict that Paytm is expected to witness revenue and margin growth in the financial year ending 2026-27, with major support from the fintech firm’s merchants business.

As of 1:50 pm, Paytm shares were trading 2.58% higher at ₹1,123 on Tuesday, compared to the previous market close, according to the NSE data.

Paytm Q4 results snapshot

In its March quarter results for the financial year ended 2025-26, Paytm posted a consolidated net profit of ₹184 crore, against a net loss of ₹540 crore in the same period a year ago.

The company’s revenue from core operations rose 18% to ₹2,264 crore in the fourth quarter, compared year-on-year with ₹1,912 crore in the same quarter of the previous year, as per the NSE filings.

The fintech company said that it discontinued its Payments Infrastructure Development Fund (PIDF) scheme, which impacted the earnings for the March quarter for the year ended 2025-26.

As per the release, Paytm received ₹128 crore in incentive revenues as part of the scheme.

In the March quarter, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) advanced 17 points to 5% year-on-year, with operational level EBITDA increasing to ₹122 crore.

What’s next for Paytm in FY2027?

Analysts from the US-based investment giant, Goldman Sachs, in the financial year ending 2026-27, expect Paytm’s revenues and gross merchandise value (GMV) to grow along with its EBITDA margins on the backdrop of the company’s unique position in the fintech market.

“Payments GMV growth to remain strong, with increasing share of higher margin instruments,” said Goldman Sachs analysts in a recent note.

The experts also highlighted that Paytm has a unique positioning in the merchant lending segment, which will support it to become a key factor for the financial services business growth, along with its consumer postpaid business.

The analysts also predict that the company’s marketing services segment is expected to return to growth in the near term due to Paytm’s ads and travel ticketing business.

Other market analysts from Bernstein Research expect non-linear EBITDA expansion over FY2026-30, driven by more than 20% revenue growth and disciplined costs for the fintech major.

After the Q4 results, Citibank analysts also said that they expect the company’s merchant business to remain strong and witness solid growth in the financial services business.

“Merchant business remains robust, and solid growth in financial services sustains. Operating leverage continues to play out as fixed costs remain reined in,” they said after the earnings release earlier this month.

Can you have Paytm UPI without bank account?

Paytm has launched its new feature of “Paytm Pocket Money”, where teenagers will be able to make UPI payments using the application without having their own bank account, according to an exchange filing on Monday, May 18.

As per the filing data, the parents and trusted family members will be able to provide safe and controlled spending access with defined limits and real-time visibility on their child’s payments made through the Paytm application.

The feature will be capped at individual payments of ₹5,00 and a monthly payment limit of ₹15,000 across the UPI network.

Paytm share price trend

Paytm shares have delivered more than 57% returns to investors in the last five years, and more than 28% gains in the last one year period, according to NSE data.

Shares of Paytm have lost 13% in 2026, and 3.5% in the past one month period. The company’s stock was trading 2.9% lower in the last five market sessions, as per the exchange data.

The shares hit their 52-week high of ₹1,381.80 on December 2, 2025, while the 52-week low was at ₹818 on May 22, 2025. The company’s market capitalisation (m-cap) was at ₹71,873 crore as of the trading session on Thursday.