Paytm’s Q1 profit beat prompts Goldman Sachs and Citi to raise target prices

One97 Communications posted ₹220 crore Q1 net profit and record EBITDA of ₹203 crore, led by merchant GMV, payments and financial services. Goldman Sachs raised its target to ₹1,500 and Citi to ₹1,560, with margin expansion, loan distribution and potential UPI monetisation seen as next triggers.

— Source publishedTue, 21 Jul, 2026, 07:22 IST·First seen Tue, 21 Jul, 2026, 08:05 IST·Source NDTV Profit

What happened

Paytm (One97 Communications) · Paytm beat Q1 estimates with Rs 220 crore profit and record Rs 203 crore EBITDA, driven by merchant GMV, payments and financial

Key facts

  • Q1 net profit: Rs 220 crore
  • Q1 revenue: Rs 2,448 crore
  • Q1 EBITDA: Rs 203 crore
  • Q1 EBITDA margin: 8%
  • Net profit QoQ: +20%
  • Revenue QoQ: +8%
  • EBITDA QoQ: +54%
  • Goldman Sachs target price: Rs 1,500 (from Rs 1,430)
  • Citi target price: Rs 1,560 (from Rs 1,425)
  • Goldman expects EBITDA margin to double by FY28

Why this matters

Paytm’s improved profitability and merchant-led scale make fintech partnerships, distribution alliances and payments-led acquisition opportunities more strategically valuable.

What to watch

  • Quarterly EBITDA margin progression and whether profitability remains positive without one-off gains.
  • Merchant GMV growth, payment-device additions, subscription revenue and merchant retention.
  • Loan-distribution disbursals, take rates, collection performance and partner-bank concentration.
  • Evidence of UPI monetisation, including merchant-paid value-added services or government policy support.
  • RBI, NPCI and banking-partner regulatory developments affecting Paytm payment products.
  • Management guidance on revenue growth, employee costs, incentives and cash-flow conversion.
  • Further analyst estimate revisions following the raised Goldman Sachs and Citi price targets.
  • Expand higher-yield merchant services, including device subscriptions, soundbox penetration and payment-processing attachments.
  • Increase loan-distribution volumes with bank and NBFC partners while emphasizing underwriting quality, collections and repeat borrower cohorts.
  • Pursue UPI monetisation through merchant value-added services rather than relying on consumer transaction fees.
  • Use the improved earnings narrative to deepen merchant acquisition while keeping incentive spending disciplined.
  • Provide clearer disclosure on contribution margins by payments, merchant services and financial services to support a durable valuation re-rating.