Paytm Shares Hit 52 Week High As Stock Gains 4% On Bernstein Bullish Call
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Paytm’s market capitalisation has risen to around ₹1.16 lakh crore, with the stock gaining 40% since the start of 2026 as profitability and growth prospects improve.
Paytm shares extended their recent rally on Friday, September 11, with One 97 Communications climbing 4% to touch ₹1,804.90, a fresh 52-week high. This was the second time the stock hit a new one-year peak this week, taking its five-session gain to 8.5% and its six-month advance beyond 75%.
The latest buying interest followed a bullish view from Bernstein, which named Paytm its top stock pick and highlighted improving operating leverage, merchant lending and the potential introduction of a merchant discount rate (MDR) on UPI transactions as key factors supporting its outlook.
A potential MDR framework could create an additional revenue opportunity for payment platforms, although the impact on Paytm would depend on the eventual structure and scope of any such move. Bernstein also sees merchant lending as an area where Paytm can continue to expand, providing a longer runway for growth.
Another development drawing attention is Paytm's work on artificial intelligence. Bloomberg reported this week, citing people familiar with the matter, that the company is preparing to offer AI agents to enterprise customers.
Paytm, in a regulatory filing, said it has been developing AI capabilities as part of its ongoing business plans and referred to a potential revenue optimisation opportunity through AI. The company also clarified that the information in the report did not constitute undisclosed material information requiring a separate disclosure under SEBI's listing regulations.
Paytm Q1 Results Support Growth Outlook
The recent rally also comes after a strong June-quarter performance. Paytm reported a 79% year-on-year increase in consolidated net profit to ₹220 crore, compared with ₹123 crore in the year-ago quarter.
Revenue from operations rose 27.6% year-on-year to ₹2,448 crore from ₹1,918 crore. Total income stood at ₹2,630 crore, against ₹2,159 crore a year earlier, while total expenses came in at ₹2,383 crore.
Management has indicated that it expects FY27 revenue growth to be higher than the 22% growth recorded in FY26. This has added to the focus on whether the company's payments and financial-services businesses can sustain the improvement in earnings.
Paytm Share Price Gains 40% In 2026
Friday's 52-week high adds to a sharp recovery in Paytm shares this year. The stock has gained around 40% since the start of 2026 and is up about 13% over the past month.
The sustained rise has taken One 97 Communications' market capitalisation to around ₹1.16 lakh crore as of September 11, based on NSE data.
Paytm's recent performance marks a significant shift in the market's view of the company, with improving profitability, merchant lending and potential new revenue opportunities now increasingly influencing the stock's valuation.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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