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One 97 Communications Ltd.
(PAYTM)
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Rating:55Neutral
Price Target:
₹1,696.00
▲(0.33% Upside)
Action:Reiterated
Date:10/27/26
The score is held back primarily by weak cash-flow quality (very negative free cash flow) despite a clear profitability turnaround and a strong, low-leverage balance sheet. Technicals are mixed with near-term softness, and valuation is demanding due to the very high P/E. Offsetting these, the latest earnings call was notably optimistic on growth, margin opportunities and operating leverage, but with meaningful execution and policy-timing risks.
Positive Factors
Revenue Growth
Sustained growth across consumer, merchant, payments, and financial-services businesses indicates broad platform demand rather than reliance on one product. Continued expansion can improve operating leverage, deepen ecosystem engagement, and support compounding revenue over the next several quarters.
Negative Factors
Weak Cash Generation
Reported profitability is not yet supported by meaningful operating cash generation, while deeply negative free cash flow indicates substantial cash investment or working-capital outflows. This weakens earnings quality and could constrain flexibility if elevated spending persists during the recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained growth across consumer, merchant, payments, and financial-services businesses indicates broad platform demand rather than reliance on one product. Continued expansion can improve operating leverage, deepen ecosystem engagement, and support compounding revenue over the next several quarters.
Read all positive factors
One 97 Communications Ltd. (PAYTM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.08T
Dividend YieldN/A
Average Volume (3M)187.42K
Price to Earnings (P/E)126.2
Beta (1Y)1.53
Revenue Growth23.79%
EPS GrowthN/A
CountryIN
Employees47,826
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)13.36
Shares Outstanding642,107,700
10 Day Avg. Volume150,027
30 Day Avg. Volume187,420
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)3.82
Price to Sales (P/S)7.26
P/FCF Ratio-7.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹2,100.00Price Target Upside24.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)19.02
Revenue Forecast (FY)₹108.78B
One 97 Communications Ltd. Business Overview & Revenue Model
Company Description
One97 Communications Limited, founded in 2000 and headquartered in Noida, India, operates as a multifaceted digital platform. It delivers an extensive suite of payment, financial, and commerce & cloud solutions to both individual consumers and bus...
How the Company Makes Money
Paytm primarily earns revenue from a mix of payments-related services to merchants, distribution/commission income from financial products offered via partners, and other platform-based services. Key revenue streams typically include: (1) Merchant...
One 97 Communications Ltd. Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 29, 2027
Earnings Call Sentiment Positive
The call was strongly optimistic, with management reporting 28% growth for two consecutive quarters, growth in the 30s excluding PIDF, improving payment margins, strong lending momentum, sharply higher monthly transacting users and substantial AI-driven operating benefits. The main negatives were the delayed and not-yet-implemented UPI MDR framework, flat P2M GMV, smaller-business headwinds, DLG-related timing effects on profitability, temporary migration-related cloud costs and the early stage of AI monetization. Highlights significantly outweighed the lowlights.Positive Updates
Profitability and Business Model Momentum
Management stated that Paytm has moved beyond the question of whether it can make a profit, with the business model now compounding from the prior year and the prior year before that. The model acquires customers through payments and cross-sells financial services, particularly credit for small merchants.
Negative Updates
UPI MDR Implementation Timing and Uncertainty
UPI MDR implementation was pushed from October 15 to after Diwali, and the implementation date had not been finalized during the call. Management said Paytm is ready and expects the current NPCI framework to remain in place, but acknowledged that the framework could still change and that consumer-versus-merchant competitive outcomes will only become clear after implementation.
Read all updates
Q2-2027 Updates
Positive
Negative
Profitability and Business Model Momentum
Management stated that Paytm has moved beyond the question of whether it can make a profit, with the business model now compounding from the prior year and the prior year before that. The model acquires customers through payments and cross-sells financial services, particularly credit for small merchants.
Read all positive updates
Company Guidance
Management said the 2.5 basis points payment-processing margin opportunity is bottom-line accretive, with slightly more than INR 700 crore on current GMV and FY 2028 impact expected to be ballpark, while GMV is expected to grow faster than market; AI monetization is expected in one year, with nine months plus three equal to one year, and later guidance said it may take at least two, three quarters more, at least, with the business potentially assessed by same quarter next year. Device CapEx was about INR 400 crore on inward devices count basis and is expected to be the same going forward. Management said revenue growth was 28% for two consistent quarters and, excluding PIDF from previous year, same quarters, this number is in the 30s; indirect expenses are expected, over a three, four quarter period, to grow at less than half of revenue growth, while free cash flow will work in EBITDA terms, with more CapEx guidance next quarter. They also said the base of 15 million merchants could include something in the plus of 10 million that are definitely a good quality merchant, and the target is to take 1/3 market share in the consumer business.One 97 Communications Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
86
Very Positive
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 95.54B | 84.37B | 67.41B | 98.70B | 79.04B | 49.63B |
| Gross Profit | 27.87B | 24.56B | 16.17B | 29.54B | 20.25B | -7.23B |
| EBITDA | 15.28B | 11.68B | 438.00M | -6.30B | -12.34B | -20.98B |
| Net Income | 8.55B | 5.53B | -6.59B | -14.17B | -17.76B | -23.93B |
Balance Sheet | ||||||
| Total Assets | 244.38B | 239.15B | 214.48B | 171.39B | 179.66B | 179.92B |
| Cash, Cash Equivalents and Short-Term Investments | 162.04B | 145.91B | 106.81B | 75.80B | 81.60B | 46.47B |
| Total Debt | 2.64B | 1.72B | 1.60B | 1.77B | 2.23B | 2.21B |
| Total Liabilities | 78.23B | 78.87B | 64.51B | 38.41B | 49.73B | 38.62B |
| Stockholders Equity | 166.04B | 160.26B | 150.27B | 133.27B | 130.16B | 141.52B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -86.71B | -4.43B | -1.71B | -2.90B | -17.43B |
| Operating Cash Flow | 0.00 | 90.00M | -1.21B | 6.51B | 4.16B | -12.36B |
| Investing Cash Flow | 0.00 | 9.52B | -20.43B | 3.18B | 26.25B | -54.89B |
| Financing Cash Flow | 0.00 | -350.00M | -527.00M | -221.00M | -11.12B | 80.53B |
One 97 Communications Ltd. Technical Analysis
Positive
1690.50
Price Trends
1684.87
Positive
1482.77
Positive
1307.49
Positive
Market Momentum
-9.56
Positive
52.13
Neutral
37.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAYTM, the sentiment is Positive. The current price of 1690.5 is above the 20-day moving average (MA) of 1671.74, above the 50-day MA of 1684.87, and above the 200-day MA of 1307.49, indicating a bullish trend. The MACD of -9.56 indicates Positive momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 37.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PAYTM.
One 97 Communications Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹81.97B | 14.73 | ― | 1.94% | 17.68% | 17.46% | |
66 Neutral | ₹41.07B | 22.25 | ― | 0.01% | 110.17% | 23.73% | |
62 Neutral | ₹32.21B | 15.37 | ― | 0.51% | 14.76% | 4.91% | |
61 Neutral | ₹21.71B | 16.76 | ― | ― | 44.48% | 27.93% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹1.08T | 126.24 | ― | ― | 23.79% | ― |
* General Sector Average
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One 97 Communications Ltd. Corporate Events
Paytm files SEBI-compliant report on IPO proceeds utilisation
Oct 26, 2026
One 97 Communications Limited has submitted a Monitoring Agency Report for the quarter ended September 30, 2026, detailing the utilization of proceeds from its initial public offering. The report, prepared by Axis Bank as the monitoring agency in ...
Paytm Parent One 97 Communications Announces Conclusion of Board Meeting
Oct 26, 2026
One 97 Communications Limited has notified the stock exchanges that its Board of Directors meeting held on October 26, 2026, commenced at 7:51 p.m. IST and concluded at 10:15 p.m. IST. The disclosure, made under SEBI listing regulations, is a rout...
Paytm Parent Grants New ESOPs and Increases Share Capital
Oct 26, 2026
One 97 Communications Limited has disclosed that its Nomination and Remuneration Committee has granted 193,072 stock options to eligible employees under the One 97 Employees Stock Option Scheme 2019, while noting the lapse of 682,951 options and c...
Paytm parent boosts ESOP grants and issues new shares to employees
Oct 26, 2026
One 97 Communications Limited has expanded its employee ownership programme with the Nomination and Remuneration Committee approving the grant of 193,072 stock options under the One 97 Employees Stock Option Scheme 2019, while noting that 684,121 ...
One 97 Communications boosts equity capital with ESOP share allotment
Oct 3, 2026
One 97 Communications Ltd. has approved the allotment of 4,99,877 new equity shares to eligible employees following the exercise of vested options under its 2019 employee stock option scheme. The shares, with a face value of ₹1 each and an e...
Paytm Sees Revenue Upside as NPCI Introduces MDR on High-Value UPI Merchant Payments
Sep 15, 2026
India’s National Payments Corporation of India (NPCI) has introduced a Merchant Discount Rate (MDR) of up to 0.4% on UPI Person-to-Merchant transactions exceeding ₹2,000, effective October 15, 2026. The MDR will apply to merchants acce...
Paytm Sets AGM, Seeks Shareholder Nod to Recast IPO Fund Use
Aug 22, 2026
One 97 Communications has announced the completion of electronic dispatch of the notice for its 26th Annual General Meeting and the annual report for fiscal 2025-26 to eligible shareholders, with the meeting to be held via video conferencing on 15...
Paytm Moves to Update Shareholder Emails Ahead of Digital AGM
Aug 22, 2026
One 97 Communications Limited has notified stock exchanges that it has dispatched physical letters to shareholders whose email addresses are not registered with the company, its registrar or depository participants. The communication provides web ...
Paytm boosts employee ownership with fresh ESOP share allotment
Aug 2, 2026
One 97 Communications Limited, the Paytm-branded fintech and digital payments provider, continues to leverage equity-linked compensation as part of its effort to align employees with shareholder interests in India’s evolving digital finance ...
Paytm launches Split Bills feature to deepen its financial life app strategy
Jul 29, 2026
Paytm has introduced a new Split Bills feature on its app timed with Friendship Day, targeting friend groups, students, Gen Z and young professionals who share expenses across trips, meals, entertainment and everyday activities. The tool allows us...
Paytm Publishes Earnings Call Transcript for Q1 FY 2027 Results
Jul 27, 2026
One 97 Communications Ltd., the operator of Paytm, is a major Indian fintech player providing digital payments and financial services to consumers and merchants nationwide, with its shares traded on BSE and NSE. The company runs its corporate oper...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.