Ahead of its concall, Paytm shares were trading 0.57 per cent lower at Rs 1,645.60 apiece.
Goldman Sachs recommended 'Buy' on Paytm with a target price of Rs 2,010. UBS maintained its 'Neutral' rating with a target price of Rs 1,340. Morgan Stanley recommended 'Hold' with a target price of Rs 1,450. Bernstein retained its 'Outperform' rating with a target price of Rs 2,200. Citi recommended 'Buy' with a target price of Rs 1,940, while Macquarie recommended 'Outperform' with a target price of Rs 2,025.
On a comparable basis, underlying growth was stronger, with operating revenue growing 33 per cent YoY and Ebitda nearly quadrupling. EBITDA margin expanded from 3 per cent to 10 per cent YoY. This excluded the Payments Infrastructure Development Fund (PIDF) incentive received until December 2025.
Net payment revenue increased 21 per cent YoY on a comparable basis to Rs 644 crore, supported by a structural improvement in payment processing margin, which is comfortably above 4 basis points (bps), led by growth in high-margin payment instruments including credit cards on UPI and Paytm Postpaid, along with market share gains. Merchants on subscription plans increased by 27 lakh YoY to 1.64 crore.
With a focus on monetisable user base, Paytm said it gained consumer UPI payment market share for the sixth consecutive quarter, with Paytm UPI GTV growing at more than double the industry growth rate.
"Monthly Transacting Users increased by 1 crore YoY to 8.5 crore, the highest addition in nearly three years, driven by better product, stronger acquisition and retention, and AI-led personalisation. Distribution of financial services revenue grew 49 per cent YoY to Rs 912 crore, driven by accelerating growth in merchant loan distribution, strong growth in personal loans and Paytm Postpaid, as well as improved monetisation in Margin Trade Funding (MTF) and Paytm Gold. Key financial services customers increased 35% YoY to 8.8 lakh," it said.
Paytm said AI is increasingly becoming the operating system of Paytm, with fine-tuned models and agents deployed across consumer, merchant and engineering journeys, risk management, collections, fraud prevention and personalisation. AI-led efficiencies helped reduce indirect expenses as a share of revenue to 46 per cent from 52 per cent a year ago.
Paytm said it has also begun offering its AI platform to enterprise merchants, extending its in-house capabilities to help them grow and engage customers across channels.
Paytm's cash balance for the quareter increased to Rs 13,617 crore as of September 2026.
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