Shares of One 97 Communications, the parent company of Paytm, surged 3.4% to ₹1,325 on Friday, November 28, hitting an intraday high of ₹1,336 as investor sentiment improved following an optimistic report from global brokerage Goldman Sachs.

Goldman Sachs upgraded Paytm’s rating from Neutral to Buy and sharply increased its 12-month target price to ₹1,570 from the earlier ₹705 — a massive 123% revision. The brokerage further outlined two additional scenarios: a bullish case placing the stock at ₹1,870 per share, and a blue-sky scenario forecasting a potential rise to ₹2,320, which would represent an upside of 79% from the latest close.

According to Goldman Sachs, the regulatory environment — once a key factor dragging down the stock — is now gradually improving. This shift is expected to support Paytm’s recovering payments market share, improve earnings visibility, and enable the relaunch of important products.

The brokerage noted that Paytm has navigated three major regulatory challenges in recent years:

• The 2022 online merchant onboarding ban
• RBI’s 2023 restrictions on unsecured lending
• The 2024 ban on Paytm Payments Bank (PPBL)

Goldman Sachs believes these hurdles are largely resolved and that Paytm is beginning to regain momentum. It highlighted that Paytm’s UPI and overall payments market share have already started improving in recent quarters, a trend expected to accelerate after the recent online payment aggregator approval.

Looking ahead, the brokerage forecasts 20–25% annual revenue growth over the next 2–3 years, and has upgraded its FY26–30 EBITDA estimates by at least 45%, resulting in significant EPS improvements. These upgrades stem from stronger cost controls, reduced ESOP expenses after the founder relinquished his grants, and robust performance in high-margin devices and merchant lending.

A Remarkable Comeback: Paytm Shares Recover 327% from Lows

Once heavily battered after its IPO, Paytm’s stock has made a dramatic turnaround. After falling to a record low of ₹310 in May 2024, the shares have rebounded sharply — climbing 327% — powered by improved financial discipline, cost optimization, and the discontinuation of non-core businesses such as ticketing.

The stock’s consistent performance is evident in its monthly trend: over the past 18 months, Paytm has ended 15 months in the green, including a notable 18% gain in July.

As the company strengthens its core operations and regains market confidence, analysts believe Paytm is entering a more stable and growth-oriented phase, supported by a healthier regulatory backdrop and clearer operational strategy.