As per reports, the revised target implies improving confidence in Paytm’s operating environment and long-term earnings trajectory.

The research house reportedly said the regulatory overhang that dragged the stock through 2024 and 2025 is now 'incrementally easing,” enabling Paytm to regain momentum in its core payments business.

Start of normalisation in the regulatory environment is resulting in early recovery in payments market share; better earnings visibility; relaunch of key products that were previously impacted; and improved clarity on business continuity.

The entity reportedly expects Paytm to deliver over 20 per cent revenue growth, supported by stabilising rules and a more predictable policy backdrop. It reportedly further said that additional gains could emerge from any positive regulatory intervention on payment charges or additional market share wins.

The research house reportedly said that Paytm’s EBITDA margins could more than double over the next three to four years as operating leverage improves and product funnels normalise. It reportedly expects profitability metrics to strengthen significantly as payment flows stabilise.

Paytm is a mobile payments and financial services distribution company.

The company had reported a consolidated net profit of Rs 21 crore in Q2 FY26, which is sharply lower as compared with the PAT figure of Rs 930 crore recorded in Q2 FY25. Revenue from operations during the period under review increased by 24% YoY to Rs 2,061 crore.