Paytm share price crossed ₹1,000 today for the first time in six months. On July 16, the stock jumped nearly 3% in intraday trade, touching ₹1,014. This marks the fifth straight day of gains and a 9% rise so far in July.
Paytm’s parent company, One 97 Communications, has seen a steady climb this month. This bounce back is driven by hopes of an MSCI index upgrade and strong business growth.
Back in May 2024, the Paytm share price was at its lowest, just ₹310. Since then, it has rallied over 230%, making it one of the top comeback stories on the Indian stock market.
What’s driving the rally?
The buzz is around a possible upgrade of Paytm from the MSCI Smallcap Index to the MSCI Standard Index. If this happens in the August reshuffle, analysts at Motilal Oswal say it could bring in $212 million in fresh inflows.
The official MSCI announcement is expected on August 8. If approved, the change will take effect from August 26.
Mutual funds betting big
Indian mutual funds seem more confident than ever. In Q1 FY26, domestic mutual fund holdings in Paytm rose to 13.86%, up from 13.11% in March. Big names like Mirae, Motilal Oswal, Nippon, and Bandhan Mutual Funds increased their stake.
While mutual funds bought more, foreign investors (FIIs) and retail investors slightly reduced their holdings. FII ownership dropped from 55.4% to 54.9%, and retail holdings fell to 29.3%.
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First ever PAT profit?
Paytm will announce its June quarter results on July 22. Analysts expect this might be its first profitable quarter on a PAT (Profit After Tax) basis.
JM Financial predicts revenue from payment services will grow 6% quarter-on-quarter and 21% year-on-year. However, more UPI usage may slightly pull down margins. But on the bright side, the number of merchant subscribers is rising fast—now around 13.3 million.
Loan disbursements also look strong, especially in merchant loans. Personal loans, however, may stay slow due to tighter lending rules.
Despite wage hikes, Paytm is expected to post an adjusted EBITDA of ₹211 million. Thanks to treasury income, analysts say net profit may come in at ₹189 million.
Paytm is no longer just recovering—it’s rewriting its story. A ₹310 stock is now eyeing ₹1,100, backed by real numbers, not just hype. The bulls are finally back—and they’re holding on.
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
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