One 97 Communications shares rose 4% to reach ₹1,804.10, a four-year peak, after brokerages hiked price targets citing potential UPI transaction fees. The rally reflects renewed investor optimism following the company's recent move to profitability. Investors are now watching for official government confirmation on the transaction fee structure.
One 97 Communications (Paytm) shares climbed to ₹1,804.10 in Friday's trading session, marking the stock's highest level in four years. This jump represents a notable recovery for the fintech company, which has seen its share price rally nearly 90% since touching a 52-week low of ₹947.10 in March 2026. The recent buying interest follows a series of positive reports from major brokerage houses.
The primary driver of this optimism is the potential introduction of a transaction fee on Unified Payments Interface (UPI) payments. Currently, UPI transactions in India are largely free for both users and merchants. Brokerages, including Jefferies and Bernstein, have raised their price targets for the stock, betting that a proposed fee structure—often referred to as a Merchant Discount Rate or MDR—could open a massive new revenue stream for the company. Analysts suggest that a fee of approximately 0.25% could significantly improve the company's operating profit margins through fiscal year 2029.
Investors are also paying attention to the company’s improved financial health. In the financial year 2026, Paytm successfully turned around its operations, reporting an operating profit (EBITDA) of ₹502 crore. This shift from earlier losses to profitability has changed the market narrative, moving investor focus toward how the company can sustain and grow these margins rather than just burning cash for user acquisition.
Despite the positive mood, it is important for investors to note that the UPI fee structure is not yet finalized. The Government of India is still evaluating a framework for charging fees on specific merchant transactions, and no official notification has been released. The ultimate impact on Paytm's revenue will depend heavily on the final rules, including whether the government sets minimum transaction value thresholds or turnover limits that could restrict the number of transactions eligible for a fee.
While the stock has staged a strong comeback, it is still trading below its 2021 listing price of ₹2,150. Market participants remain cautious about the timeline for these regulatory changes. For the immediate future, the key monitorables for shareholders will be official government circulars regarding UPI monetization and the company's ability to maintain its margin growth in upcoming quarterly earnings reports.