Shares of Paytm-parent One 97 Communications Ltd. extended their rally on Tuesday and surged 3.52% to a high of Rs 1,639.90 on the NSE.
The surge comes after the tech company finally bagged an upgrade that lifted investor sentiment surrounding it after a brokerage raised its target above the IPO price for the first time.
On Monday, Bernstein priced in Centre's recently introduced Merchant Discount Rate (MDRs) for its FY28 estimates, and accordingly hiked Paytm's target price to Rs 2,200.
"We think MDR could lift net payments margins by 3-4bps, driving a 30% increase in FY30E EPS vs. our previous forecasts," Bernstein stated in its note.
Paytm had an IPO issue price of Rs 2,150 per share, but it listed on the stock exchanges on November 18, 2021, at a discount, opening at Rs 1,950 on the NSE and Rs 1,955 on the BSE.
As of 12:30 p.m., the shares pared some gains to trade 2.17% higher at Rs 1618.40 apiece.
The share price has gone up 14% in the last five sessions alone, while on a year-to-date basis Paytm has risen 24% and 43.55% in the last 12 months.
Centre Paves Way To Relaunch MDR On UPI Payments
The government has paved the way to introducing a Merchant Discount Rate (MDR) on a limited set of UPI merchant transactions above a certain threshold after the passage of the Taxation and Other Laws (Amendment) Bill, 2026, in the Lok Sabha. This bill removes the legal restriction on levying MDR on certain electronic payment transactions.
Paytm Fifth Consecutive Profitable Quarter
One97 Communications reported a 8.1% jump in its consolidated revenue for the first quarter of fiscal 2026-27 to Rs 2,448 crore sequentially, compared to Rs 2,264 crore.
The firm's net profit saw a 20% increase to Rs 220 quarter-on-quarter from Rs 184 crore. Its earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 54% to Rs 203, compared to the previous quarter's Rs 132 crore. The Ebitda margin expaned to 8.3% from 5.8% in the quarter prior.
The company has clocked a profit for the fifth straight quarter.
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