Goldman Sachs raises Paytm target price to Rs 2,070

Goldman Sachs has reiterated its ‘Buy’ rating for One 97 Communications (Paytm) and raised its 12-month target price by 39 percent, moving it from Rs 1,500 to Rs 2,070. The brokerage cited strong earnings expectations driven by market share gains, revenue growth, and margin momentum.

Even without the impact of the recently announced Unified Payments Interface (UPI) Merchant Discount Rate (MDR), Goldman Sachs expects Paytm’s EBITDA to more than double in FY27 compared to FY26, and to double again in FY28. The inclusion of UPI MDR could potentially upgrade EBITDA estimates by up to 40 percent.

Key growth drivers identified include steady market share gains in both consumer and merchant payments, a shift toward higher-margin products, and sustained cost control. Additionally, the brokerage noted potential valuation upside from the scaling of postpaid services, a possible relaunch of the wallet business, and the upcoming December 2026 deadline regarding UPI market share caps.