Motilal Oswal keeps Paytm at Neutral with a INR 1,850 target
Motilal Oswal reiterated Neutral on One 97 Communications: profit fell short of its estimate on higher expenses and taxes, while revenue matched forecasts.
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what happened
According to Motilal Oswal research, as reported by TradingView, One 97 Communications (Paytm) posted a net profit of INR 2.25 billion. That was 18% below the brokerage's INR 2.7 billion estimate, mainly because of higher indirect expenses and taxes. Revenue rose 28% year on year and 8% quarter on quarter to INR 26.5 billion, in line with forecasts. Growth was supported by a larger merchant base, more transactions, device subscriptions and wider payment margins, although gross merchandise value was roughly flat quarter on quarter.
The analysts adjusted their model to account for a possible MDR impact on UPI and now expect profit of INR 10.4 billion in FY27E and INR 26.5 billion in FY28E. They value the stock at INR 1,850, based on 38x FY28E EV/EBITDA, and reiterated a Neutral rating.
why it matters
For the market this is a routine broker update, but it highlights that investors are watching the possible introduction of MDR fees on UPI, which could cut payment service revenue. Profit below estimates with revenue in line points to cost and tax pressure. The valuation rests on the brokerage's assumptions, so it is one view rather than a guide to action.
tags
instruments
sources
- Neutral One 97 Communications; target of Rs 1850: Motilal Oswal — TradingView, 28 October 2026 at 08:39 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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