India Internet, IT Services and Telecom: Feedback from Singapore marketing

Research evidence excerpt

India Internet, IT Services and Telecom: Feedback from Singapore marketing

Goldman Sachs India Internet, IT Services and Telecom

MMYT has seen a pause, our conversations suggest investors are not pricing in any

material revenue growth acceleration for MMYT; we forecast MMYT going back to 20%+

revenue growth starting Dec ‘26 (vs mid-teens at present), and see this continuing to

drive re-rating in the stock. Investors we spoke to are trying to assess the impact of a

potential India listing on the MMYT stock, and the ways in which the company could

make the potential two securities fungible over time, without which investors would be

concerned about likelihood of a holding company discount. AI-related concerns were

less top of mind for investors in our conversations than a few months ago.

Paytm (Buy rated): We got limited pushback on our constructive view on the name, with

investors trying to assess how much more runway Paytm has for elevated revenue

growth while also expanding margin at the same time. We expect Paytm’s EBITDA to

grow 3-4x by FY28 vs FY26 levels, and we believe the extent of improvement could help

further re-rating in the stock. In our conversations, we note investors are currently

assigning a close to zero probability of UPI market share cap implementation in Dec ‘26,

though acknowledge Paytm could be a significant beneficiary if this event were to play

out. Investor concerns were largely around overhang on the stock from potential

sell-down by pre-IPO shareholders.

Other internet: Investors remain constructive on Nykaa (Neutral-rated) despite

elevated valuations, and believe that the company’s strong execution, good growth

visibility and lack of competition or AI concerns could help the stock sustain premium

multiples.