Shares of One97 Communications, the parent company of Paytm, touched a 52-week high today following a positive brokerage upgrade. Investor Akash Bhansali, who built his position during the 2024 regulatory crisis, has seen his investment value rise to approximately ₹1,225 crore. This growth comes as the company reports a return to profitability for the 2026 fiscal year.
One97 Communications shares saw a sharp rise today, touching a 52-week high of ₹1,568.75. This rally has significantly boosted the value of the stake held by ace investor Akash Bhansali, which is now worth roughly ₹1,225 crore. Bhansali, who is associated with Enam Holdings, currently holds 7,921,162 shares, representing about 1.24% of the company's equity.
The recent stock price improvement follows a major report from brokerage firm Bernstein, which raised its target price for One97 Communications to ₹2,200. This is a notable event for the stock, as it marks the first time an analyst target has exceeded the company's IPO price of ₹2,150. The brokerage highlighted improving net payments margins, specifically due to the introduction of merchant discount rates (MDR) on UPI transactions, as a key driver for the positive outlook.
Bhansali’s investment strategy in this case involved entering the stock during a challenging period. He built his position in early 2024, when the company was facing intense scrutiny and restrictions from the Reserve Bank of India regarding its payments bank unit. At that time, the stock was trading near its all-time lows. His initial investment was roughly ₹360 crore. Today, that investment has more than tripled, resulting in a gain of approximately ₹865 crore.
Beyond the stock rally, the valuation increase reflects a shift in the company’s financial performance. After a difficult period of business restructuring, One97 Communications reported a net profit of ₹552 crore for the fiscal year 2026, marking a turnaround from the losses seen in previous years. This shift to profitability has helped improve investor confidence in the company's long-term viability.
While the stock has recovered well from its 2024 lows, risks remain for shareholders. The company's history of regulatory friction, specifically regarding its payments bank, serves as a point of caution for investors. Additionally, the Indian fintech sector is highly competitive, which could limit profit margins over time. The company’s future performance will depend on its ability to execute its new revenue models, such as the fees on UPI transactions, without losing market share. Investors will likely watch upcoming quarterly results to see if these profit margins are sustainable.