Jun-Qtr: Strong Growth Momentum

Research evidence excerpt

Jun-Qtr: Strong Growth Momentum

India | Payments, Processors & IT Services

Paytm EquityJulyResearch21, 2026

TARGET | ESTIMATE CHANGEJun-Qtr: Strong Growth Momentum

For Jun-Qtr, Paytm's revenue growth of 28%, Ebitda margin of 8% were RATING BUY

strong and ahead of expectations. Momentum in core and new verticals PRICE INR1,300.00^

is strong and can aid 25% CAGR in revenues over FY26-29 and rise in PRICE TARGET | % TO PT INR1,600 (INR1,450) |

EBITDA margin from 6% in FY26 to 18% by FY29. MDR on high-ticket UPI +23%

52W HIGH-LOW INR1,407.00 - INR947.10

transactions will give further upsides. We lift earnings forecasts & raise PT

FLOAT (%) | ADV MM (USD) 58.5% | 40.51

to Rs1,600. Paytm is among our preferred Fintechs as highlighted in our

MARKET CAP INR832.9B | $8.6B

report: Indian FinTech Coming of Age

TICKER PAYTM IN

^Prior trading day's closing price unless otherwise

Healthy growth in core revenues & profits. For Jun-Qtr, Paytm reported a healthy 31% YoY noted.

rise in GMV, wider payment margins and growth in financial services revenues (loan origination

and other services). This led to 28% YoY revenue growth, with a contribution margin of 55%

(down from a high base but stable QoQ). Growth in contribution and operating synergies lifted FY (Mar) CHANGE TO JEFe JEF vs CONS

Ebitda margin from 4% last year to 8%. 2026 2027 2026 2027

REV NA NA NA NA

Expect strong growth led by client growth and monetisation. We expect Paytm to sustain EPS NA NA NA NA

strong revenue growth across segments, driven by payments market share gains (UPI growth

for Paytm at 45% vs. 20% for the industry), increasing share of higher-margin credit-backed

payments, and expansion of lending across merchant loans, personal loans and postpaid.