Paytm Shares Hit 54-Month High on UPI Fee Hopes

One97 Communications, the parent company of Paytm, experienced a 10% surge in its shares on August 10, 2026. This pushed the stock to a 54-month high of ₹1,598.

The significant climb followed global brokerage firm Bernstein raising its target price for the stock. Bernstein cited potential benefits for Paytm from higher UPI fees, setting a new Street-high target.

Bernstein’s Revised Outlook

Bernstein’s increased target price of ₹2,200 suggests an approximate 38% upside from the previous closing price. This new target surpasses Paytm’s IPO price of ₹2,150.

The brokerage firm integrated a merchant discount rate (MDR) on selected UPI merchant transactions into its base-case forecasts from FY28. This move is projected to enhance Paytm’s net payment margins by 3-4 basis points.

The adoption of this MDR could potentially increase Paytm’s earnings per share (EPS) by 30% for FY30 compared to earlier projections. The Indian government is reportedly evaluating a nominal MDR on certain UPI merchant transactions above a specific threshold, while keeping consumer and person-to-person payments free.

Stock Recovery and Strategic Shifts

Paytm’s stock has demonstrated a strong rebound, recovering 70% from its March lows despite initial pressure in early 2026. The company has consistently closed in the green for the past four months, with an 18% gain this month.

This positive momentum stems from several factors, including easing regulatory challenges. Investor confidence has also improved due to enhanced earnings visibility and plans for new product launches.

Following restrictions imposed by the Reserve Bank of India on Paytm Payments Bank in 2024, the company redirected its focus. It concentrated on its core payments and financial services distribution businesses, expanding by onboarding higher-quality merchants.

Paytm anticipates stronger growth in FY27 compared to the previous fiscal year. This is expected to be driven by an increased market share in merchant and consumer payments, alongside the continued expansion of its financial services distribution business.

Quarterly Performance Highlights

For the June-ending quarter, Paytm reported robust financial results, showcasing significant year-on-year growth.

• Net profit surged 79% year-on-year (YoY) to ₹220 crore, up from ₹123 crore.
• Excluding the PIDF incentive, PAT saw a 207% increase to ₹212 crore from ₹69 crore.
• Reported EBITDA jumped 182% YoY to ₹203 crore, compared to ₹72 crore.
• The EBITDA margin expanded from 4% to 8%.
• Revenue from operations grew 28% YoY to ₹2,448 crore, up from ₹1,918 crore.
• Payment Services business revenue increased 33% YoY to ₹1,384 crore.

These strong quarterly financials underscore the company’s strategic refocus and improved operational efficiency, supporting its growth trajectory.