Must you purchase/promote/maintain Paytm shares after Q1FY26 earnings? Here’s what analysts advocate

Paytm Share Worth Goal, Paytm Shares: One97 Communications, a dad or mum agency of Paytm, on Tuesday (July 22) reported a its first-ever web revenue at Rs 122.5 crore for the primary quarter of the FY26. After this efficiency what ought to traders do with the the corporate’s inventory? Must you purchase, promote, or accumulate it? Here’s what brokerages advocate

Analysts at world brokerages–Jefferies, Citi, Bernstein, Macquarie, BofA, UBS–have confirmed blended views on the inventory and anticipated as much as 18.69 per cent potential sooner or later time period from Tuesday’s closing.

Two brokerages, Jefferies and Citi have advisable shopping for One97 Communications’ shares for targets of Rs 1,250 and Rs 1,215, respectively.

In response to Jefferies, in the course of the quarter the corporate has posted better-than-expected Q1 EBITDA of Rs 70 crore. The brokerage attributed the beat partly to decrease DLG (Digital Lending Assure) prices—though it famous these advantages could also be transitionary—and operational leverage from modest development in MTU (month-to-month transacting customers) and GMV (gross merchandise worth), up 3 per cent and 6 per cent quarter-on-quarter respectively. Nonetheless, it cautioned that contribution margins might settle barely decrease over the subsequent two to a few quarters.

Whereas, Citi stated that the patron section as nonetheless comparatively weak. It additionally revised its forecasts downward by eradicating UPI-MDR revenues from its mannequin, acknowledging regulatory limitations on that entrance.

In the meantime, one other brokerage Bernstein has an ‘outperform’ score with a share worth goal of Rs 1,100, suggests 4.45 per cent upside. In response to the brokerage, Paytm’s first web revenue was a major and clear milestone. It additionally expressed confidence that profitability is sustainable within the coming quarters, calling it an vital sign of enterprise maturity.

In distinction, Macquarie has maintained an ‘underperform’ score on the Paytm inventory with a goal of Rs 760, indicating 27.83 per cent draw back from Tuesday’s closing. The brokerage acknowleded that working leverage had pushed profitability in Q1, analysts expressed concern concerning the shift from DLG-backed mortgage distribution to a non-DLG mannequin and the muted efficiency of the non-public mortgage section.

“Any earnings upside would doubtless rely upon a restoration in private mortgage disbursements,” in response to Macquarie analysts.

Whereas acknowledging that working leverage had pushed profitability in Q1, Macquarie expressed concern concerning the shift from DLG-backed mortgage distribution to a non-DLG mannequin and the muted efficiency of the non-public mortgage section. The agency instructed that any earnings upside would doubtless rely upon a restoration in private mortgage disbursements.

BofA Securities has maintained a ‘impartial’ score elevating share worth goal to Rs 1,160 from Rs 1,005. The brokerage famous that whereas revenues have been in line, the corporate delivered a powerful profitability beat.

“The administration’s steering of fifty per cent contribution margin and 15–20 per cent EBITDA margin was seen as encouraging, and to boost valuation multiples in its sum-of-the-parts (SOTP) mannequin,” in response to BofA.

Equally, UBS has additionally maintained a ‘impartial’ score with a goal worth of Rs 1,100, citing value controls have been stronger than anticipated, although the funds enterprise had a modest quarter with flat trade GMV share. The brokerage additionally noticed lowered disclosures within the monetary providers section however remained constructive on service provider lending, It additionally pointed to the corporate’s long-term margin steering as a key space to look at.

Paytm Q1 Outcomes

Right here is the highlights of Paytm’s Q1FY26 earnings:

• Paytm Q1 web revenue: Rs 122.5 crore
• Paytm Q1 EBITDA: Rs 72 crore
• Paytm Q1 income from operations: Rs 1,917.5 crore
• Paytm Q1 web cost income: Rs 529 crore
• Paytm Q1 whole cost providers income: Rs 1,110 crore
• Paytm Q1 gross merchandise worth (GMV): Rs 5.39 lakh crore
• Paytm Q1 monetary income: Rs 561 crore