One97 Communications, the parent company of Paytm, has seen its target price increased to Rs 1,430 by Goldman Sachs. This revision follows a strong Q4 FY26 performance where the company turned profitable, reporting a profit of Rs 183 crore. The brokerage highlights market share growth and improved financial services as key drivers for this positive outlook.
What Happened
Goldman Sachs has reaffirmed its optimistic view on One97 Communications, the operator of the Paytm platform, raising its target price to Rs 1,430. This move follows the company's recent earnings report, which highlighted a significant financial turnaround. The brokerage pointed to the company's expanding market share in digital payments and a stronger performance in its financial services segment as primary reasons for its confidence. This revision comes at a time when the company has shifted from losses to profitability in the final quarter of the 2026 fiscal year.
Q4 FY26 Financial Turnaround
The most notable aspect of the company's recent results is the swing to profitability. For the quarter ended March 2026, One97 Communications reported a consolidated profit of Rs 183 crore, a major improvement from a loss of Rs 540 crore in the same period last year. Revenue from operations also saw a healthy increase, rising 18.4% to Rs 2,264 crore compared to Rs 1,912 crore in Q4 FY25. Additionally, the company’s operating profit, or EBITDA, reached Rs 132 crore, reversing the loss of Rs 88 crore seen in the prior year's corresponding quarter. For the full fiscal year 2026, the company posted a consolidated profit of Rs 552 crore, compared to a loss of Rs 663 crore in FY25.
Why The Brokerage Is Bullish
Goldman Sachs expects the company to maintain momentum, raising its revenue growth forecast for FY27 to 24%, up from the earlier estimate of 22%. The investment bank anticipates that EBITDA will more than double between FY26 and FY30, with a projected compound annual growth rate exceeding 50%. The brokerage identifies several catalysts for this growth, including a potential relaunch of the company’s wallet services and the expected impact of the UPI market share cap set for December 2026. Furthermore, the marketing services business is showing signs of bottoming out, which could aid future earnings stability.
The Regulatory And Business Environment
While the current regulatory environment is viewed as more stable, it remains a critical factor for fintech companies. Paytm has previously faced significant regulatory scrutiny, which impacted its operations in earlier years. Investors typically watch the regulatory landscape closely, as any change in rules regarding digital payments or wallet services can directly affect the company’s business model. The upcoming December 2026 deadline for UPI market share caps is a major event that the company and its competitors will need to navigate.
What Investors Should Track
Moving forward, the primary monitorables for shareholders include the company's ability to sustain its profit margins and its success in scaling the financial services segment. Investors will also look for updates on the potential wallet service relaunch and how the company manages the regulatory requirements surrounding UPI transactions. The consistency of operational performance—moving from a single profitable quarter to sustained annual profitability—will be a key measure of the company's success in this recovery phase.