Paytm’s Comeback Charge: The Fintech Giant Is Quietly Powering Into a New Rally

Paytm’s parent, One 97 Communications, kicked off the week with renewed strength, notching another solid gain on Monday. The stock climbed 3.4% to ₹1,365 — a level it hasn’t touched since late 2021 — extending its winning streak and reinforcing a trend investors have been watching closely.

What’s driving the mood shift? The cloud of regulatory pressure that once weighed heavily on the stock is steadily lifting. With fewer compliance hurdles to navigate, the company’s revenue outlook has become clearer. Add to that a pipeline of upcoming product launches, and the Street is finding fresh reasons to turn bullish.

The momentum has been hard to ignore. Over the past two months, Paytm’s shares have rallied nearly 18%, pushing the firm toward what could become its third straight year of positive returns. Even more striking is its performance over the last eight months, where the stock ended seven of them in the green — its strongest sustained upswing since its 2021 listing. During this run, the company has delivered a remarkable 90% return.

Goldman Sachs Turns Optimistic, With a Big Target Revision

Last week, global brokerage Goldman Sachs made a decisive call: the firm shifted Paytm to a “Buy” rating from “Neutral” and sharply revised its target price. Its new 12-month target stands at ₹1,570 — a dramatic jump from its earlier expectation of ₹705.

In its more confident scenarios, the brokerage foresees even stronger performance. Goldman’s bullish case pegs the stock at ₹1,870, while its most optimistic outlook suggests it could climb to ₹2,320 — nearly 80% above recent levels.

Goldman pointed out that Paytm has weathered three major regulatory blows in the past three years: the merchant onboarding freeze in 2022, the restrictions on unsecured lending in 2023, and the Paytm Payments Bank ban in 2024. According to the firm, these obstacles have largely eased, allowing Paytm to recapture lost ground.

The brokerage also highlighted a steady recovery in Paytm’s UPI and broader payments market share. With the company now receiving approval as an online payment aggregator, Goldman expects Paytm to accelerate customer acquisition and reinforce its competitive position. Over the next two to three years, the brokerage projects annual revenue growth in the 20–25% range, supported by stronger operating performance and substantial upgrades to its long-term EBITDA expectations.

Mutual Funds Quietly Build Their Highest-Ever Position in Paytm

Institutional interest is strengthening as well. Domestic mutual funds significantly raised their holdings in Paytm during the September quarter, taking their combined stake to a record level.

Data from Trendlyne shows that 40 mutual funds now collectively own 16.25% of the company — up from 13.86% in the previous quarter. In absolute terms, this translates to 10.3 crore shares, signalling consistent confidence among long-term investors.

Several well-known funds feature in Paytm’s shareholder mix. Motilal Oswal Midcap Fund has built up a 5.57% position, Nippon India Growth Mid Cap Fund holds 2.11%, and Mirae Asset Large Cap Fund owns 1.66%.

While domestic institutions increased their bets, foreign investors pared back slightly, reducing their stake from 54.9% in June to 51.7% in September 2025. Retail shareholders also trimmed their exposure marginally.

With regulatory pressures easing, institutional interest rising, and analysts turning constructive, Paytm’s latest rally reflects a market that is beginning to price in a new phase of stability and growth for the fintech major.