Paytm shares near IPO price amid MDR rollout and 6 consecutive profitable quarters

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Shares of One 97 Communications, the parent company of Paytm, have been gradually moving closer to their initial public offering (IPO) price of Rs 2,150 over the past few months, supported by improving financial performance and a positive regulatory development. The stock was trading at Rs 1,939.70 on Friday, November 13, around 9.8% below its IPO price.
The stock could see further upside on the back of the RBI's in-principle approval for its wallet business and the expected implementation of a 40 basis point merchant discount rate (MDR) on eligible UPI merchant transactions. The MDR move could create an additional revenue stream for Paytm and improve the monetisation of its payments business.
Paytm shares have gained nearly 7.7% over the past two trading sessions, touching a fresh 52-week high of Rs 1,960 during Friday's session. The stock has more than doubled from its 52-week low of Rs 930.60 in March 2026.
The recovery comes as the fintech company continues to report consistent profits. Paytm has remained profitable for six consecutive quarters, led by revenue growth, better operating efficiencies and improved cost management.
In the second quarter of FY27, Paytm reported a 28.5% year-on-year increase in operating revenue to Rs 2,648 crore, while its net profit jumped 10.7 times to Rs 225 crore. For the first half of FY27, the company posted operating revenue of Rs 5,096 crore and net profit of Rs 491 crore.
Another positive development for the company came on November 13, when the Reserve Bank of India (RBI) granted in-principle authorisation to its wholly owned subsidiary Paytm Payments Services Limited (PPSL) to issue and operate prepaid payment instruments (PPIs), including digital wallets.
The approval represents an important step towards reviving Paytm's wallet biz, which was earlier operated through Paytm Payments Bank. However, PPSL will need to complete system and cybersecurity audits and obtain final authorisation from the RBI before it can resume issuing wallets.
Apart from improving financial performance and the RBI's in-principle approval for its wallet business, the proposed implementation of a merchant discount rate (MDR) on UPI transactions could further support Paytm's growth prospects in the coming quarters.
The firm is expected to benefit from a proposed 40 basis point MDR on eligible merchant transactions, which could create an additional revenue stream for its payments business. Bank of America (BofA), in its October report, maintained a Buy rating on Paytm and highlighted the potential upside from MDR implementation, which is expected in the near term.
Bernstein has also turned more optimistic about the company's prospects. In August, the brokerage raised its target price on Paytm to Rs 2,200 from Rs 1,500, while retaining its Outperform rating.

document fetched 2026-11-14 03:05