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New Delhi: PayTM, the brand behind One97 Communications, has received a highly appreciated boost to its recovery plan as a Hong Kong-based brokerage has published a report predicting better days for India’s oldest Fintech firm.
Despite the company losing about 14-15% of its value on a year to date basis, Haitong Securities has given it an ‘outperform’ rating with a target price of ₹1,410. This implies a significant 26% upside from current levels, as the company is estimated to see a fourfold increase in profitability over the next two yea₹
The lynchpin to change: From B2C to B2B
The optimism lies in PayTM’s strategic pivot to B2B lending, which it started in earnest in March this year, following struggles with its Payment Bank license and tighter regulations in its financial services business.
PayTM has started lending to its captive base of over 48 million active merchants, giving it a moat in its offline payments space. The company’s renewed focus on lending now contributes about 30% of its revenue, compared to about 9% in FY22.
The Noida-based company offers its B2B users a marketplace to buy insurance, lending and broking services beyond the low-yield UPI ecosystem.
With this focus, PayTM’s Acche Din are now on track, especially since it returned to profitability last year following its 2021 IPO.
The brokerage notes that this renewed focus on SME merchants has helped boost its revenue per Monthly Transacting User (MTU) to reach ₹1,155 in December 2025.
Efficiency Over Expansion
Vijay Shekhar Sharma has focused inwards, by cutting losses and reducing employee costs, in line with peers like PhonePe and Pine Labs. This has meant reducing employee expenses, including ESOPS, to 33% of revenues from 47% in 2023, while boosting technology investments at 8-9% of its revenues.
Expectations of better Q4 Results
With the company expected to declare its Q4 FY26 results following its Board meeting on April 28, reports like these are building anticipation amongst investors, some of whom may be reassessing their investments.
One97 Communication’s shares were trading at ₹1,105 a piece on April 13, the last trading session.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
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