Paytm Shares Rise Nearly 4% as ICICI Securities Raises Price Target After Three-Day Slide

Paytm Shares Snap Three-Day Losses as Stock Rises Nearly 4% After ICICI Securities Ups Target Price

In a strong rebound that brought renewed optimism for fintech investors, Paytm shares snap three-day losses and surged nearly 4% on Tuesday after ICICI Securities upgraded its outlook on the stock. The shares of One97 Communications Ltd, the parent company of Paytm, climbed to ₹1,288 apiece, reversing a three-session downturn and attracting renewed market interest following a bullish reassessment by the domestic brokerage firm.

The latest upward movement comes at a time when investor sentiment around the broader fintech sector has been fluctuating due to regulatory and competitive pressures. However, the upgraded valuation by ICICI Securities injected fresh confidence into Paytm’s medium-term growth story.

ICICI Securities Boosts Target Price, Sees Strong Earnings Visibility Ahead

In its latest report, ICICI Securities raised its target price for Paytm shares to ₹1,450, up from its earlier target of ₹1,240. The revised estimate implies a robust upside potential of nearly 17% from the stock’s previous close, reaffirming the brokerage’s ‘Buy’ rating.

According to analysts at the firm, Paytm is positioned to deliver strong earnings growth over the next few years, supported by rapid expansion in key business verticals such as payment services, loan distribution, merchant offerings, and improved UPI contribution.

The brokerage noted,

“Paytm’s plans for traction in postpaid, wallet, and the international segment, complemented by its diverse presence across the payment ecosystem, could support net revenue of ₹12,523 crore by FY28.”

ICICI Securities added that the company is witnessing better success across product innovation, customer and merchant retention, and free cash flow optimisation, all of which strengthen the risk–reward profile for investors. While acknowledging potential regulatory risks, especially around loan distribution, the brokerage said the long-term outlook remains favourable.

The firm estimates Paytm’s subscription revenue to reach ₹1,670 crore in FY27 and ₹1,950 crore in FY28, while projecting profit after tax of ₹1,530 crore in FY27 and ₹2,230 crore in FY28.

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Paytm Shares Snap Three-Day Losses: Stock Rebounds After Volatility

Even though Paytm shares snap three-day losses, the stock has been trading with heightened volatility in recent weeks. Over the past one month, Paytm has slipped slightly—down over 1%—as profit booking and market-wide weakness weighed on sentiment.

However, the stock’s broader trend remains strong:

• Up over 48% in the past six months

• Up more than 30% in 2025 so far

• More than doubled (up 108%) from its 52-week low of ₹651.50 on March 11

• Reached a 52-week high of ₹1,353.80 on November 10

Despite the recent correction of nearly 5% from its peak, today’s rebound signifies strong investor confidence, particularly after the upgraded earnings expectations.

Broader Market Context Supports Paytm’s Upside Potential

Analysts believe the turnaround in Paytm’s share price reflects broader resilience in India’s digital payments and fintech landscape. With UPI adoption continuing to surge, Paytm’s diversified role across payments, credit distribution, merchant subscriptions, and device deployments has strengthened its competitive footing.

The company’s recent focus on improving margins, reducing cash burn, and prioritising profitable growth has also resonated positively with institutional investors.

ICICI Securities highlighted that Paytm’s ongoing product upgrades—particularly in soundbox devices, merchant solutions, and lending partnerships—are expected to enhance operating leverage over the next few quarters.

Investor Sentiment Improves as Paytm Strengthens Growth Outlook

The upgrade by ICICI Securities could trigger fresh institutional inflows into the stock, especially as investors look for companies with strong earnings visibility and scalability. Paytm’s consistent improvement across key business parameters, including customer retention and monetisation, adds further weight to the positive outlook.

However, analysts caution that regulatory developments—particularly in the lending space—remain a key risk to monitor. The evolving policies around fintech credit distribution and digital payments frameworks could influence Paytm’s operational dynamics.

Still, with Paytm shares snapping three-day losses and gaining momentum again, the near-term outlook appears constructive.

Outlook: Paytm Poised for Gradual Upside if Execution Remains Robust

With upbeat commentary from ICICI Securities and improving financial projections, Paytm appears well-positioned for continued upside in the coming quarters.
The combination of expanding revenue streams, better cash flow management, and strengthened merchant and consumer ecosystems indicates the potential for sustained growth.

As long as the company maintains its operational momentum and successfully navigates regulatory shifts, analysts believe the stock could approach or surpass the ₹1,450 target highlighted in the brokerage’s report.

For now, the key narrative of the day remains clear—Paytm shares snap three-day losses, and the stock’s rebound signals renewed confidence in its long-term digital growth trajectory.

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