Paytm shares surge 5% on Sebi's nod to Paytm Money for research licence

Paytm shares rewarded investors on Tuesday, March 18, 2025, as they surged over 5 per cent in the intraday trade today. At 10:40 AM, Paytm share price was quoting 4.8 per cent higher at Rs 721.9 per share, after hitting an intraday high of Rs 724.25 per share (up 5.1 per cent), as against a 1.13 per cent gain in the benchmark BSE Sensex index.

The rally in Paytm share price came after market regulator Securities and Exchange Board of India (Sebi) granted the fintech company's arm, Paytm Money, to operate as a Research Analyst.

"We wish to inform you that Paytm Money Limited, a wholly-owned subsidiary of One 97 Communications Limited, has been granted a Certificate of Registration as a Research Analyst by the Securities and Exchange Board of India (Sebi) under the Sebi (Research Analysts) Regulations, 2014," One97 Communications, the parent company of Paytm, said in a stock exchange filing.

With Paytm Money's registration as a research analyst, Paytm Money Limited can offer Sebi-compliant research services.

including investment insights, research reports, and data-driven analysis.

This milestone, the company said, aligns with Paytm Money's objective to expand its offerings in the investment ecosystem, improve user experience, and provide expert-backed insights to both retail and institutional investors.

"These services will soon be integrated into the Paytm Money app as part of a research and advisory offering, empowering investors to make well-informed financial decisions," it added.

Paytm Money is a Sebi registered stock broker and Depository Participant (DP), facilitating equity and derivatives trading, providing depository services, and facilitating investment in initial public offerings (IPOs).

On the bourses, Paytm has had a one-way slide in its share price so far this calendar year. The stock price has tumbled 32.3 per cent year-to-date in 2025, as against a 4 per cent drop in the benchmark index.

Paytm stock has also crashed 35.2 per cent from its 52-week high level of Rs 1,063 per share, which it touched on December 17, 2024.

Paytm is the largest fintech player in India (by revenue) driven by its extensive coverage across the small merchants ecosystem. The company not only has one of the largest merchant bases but also is able to monetise this merchant base across device subscription and commission on payments and loan disbursals.

According to analysts, Paytm has the largest merchant base on UPI with acquirer side GMV market share of around 35 per cent, while also being one of the top 5 payment gateways in India. The company currently has sub-5 per cent loan penetration on its merchant base with payment device subscription, enabling significant headroom for growth if the newly launched DLG model encourages existing lending partners to ramp up disbursals or bring new partners onboard.

With NPCI approval in place to acquire new UPI users and a robust balance sheet, Paytm remains on the cusp of a virtuous cycle, effectively driving growth and monetisation across segments, they believe.

JM Financial Services, for instance, has a 'Buy' rating on Paytm stock with a March, 2026, share price target Rs 1,250.

"We expect the company to deliver 23 per cent FY25-30 revenue CAGR, while improving Ebitda margin to 20 per cent by FY30. Furthermore, depreciation is expected to be on a flat/declining trend while other income would rise on higher cash balance through sale of Events ticketing business and PayPay stake in Japan. This would result in robust PAT conversion, resulting in 16 per cent PAT margin in FY30," it said.