Paytm nears IPO price on RBI wallet nod and profit streak

By Amara Osei

Paytm shares were trading at Rs 1,939.70 on Friday, November 13, 2026, 9.8% below their Rs 2,150 IPO price. One 97 Communications, Paytm’s parent, has seen the stock gradually approach that level over the past few months, supported by improving financial performance and a positive regulatory development.

During Friday’s session, Paytm touched a fresh 52-week high of Rs 1,960. The shares gained nearly 7.7% over two trading sessions. They have more than doubled from their 52-week low of Rs 930.60 in March 2026.

What is driving Paytm’s recovery?

Paytm has remained profitable for six consecutive quarters, led by revenue growth, better operating efficiencies and improved cost management. In Q2 FY27, the company reported operating revenue of Rs 2,648 crore, up 28.5% year on year. Net profit jumped 10.7 times to Rs 225 crore in the same quarter.

For the first half of FY27, Paytm reported operating revenue of Rs 5,096 crore and net profit of Rs 491 crore. The earnings run has accompanied the stock’s move back toward its IPO price. Paytm still traded below the listing benchmark on Friday, even as the RBI approval and proposed MDR offered potential further support.

What did the RBI authorize for Paytm?

On November 13, the Reserve Bank of India granted in-principle authorisation to Paytm Payments Services Limited, Paytm’s wholly owned subsidiary, to issue and operate prepaid payment instruments, including digital wallets. The approval advances Paytm’s effort to revive a wallet business earlier operated through Paytm Payments Bank. It gives PPSL in-principle standing, not permission yet to issue wallets.

PPSL must complete system and cybersecurity audits and obtain final authorisation from the RBI before it can resume issuing wallets. Paytm still faces three stated prerequisites: a system audit, a cybersecurity audit and final RBI authorisation.

How could UPI MDR affect Paytm?

Paytm is expected to benefit from a proposed 40 basis point merchant discount rate on eligible UPI merchant transactions. The rate could create an additional revenue stream and improve the monetisation of its payments business in coming quarters.

Bank of America maintained a “Buy” rating on Paytm in its October report. The brokerage highlighted potential upside from MDR implementation, which is expected in the near term.

Bernstein also turned more optimistic about Paytm’s prospects. In August, the brokerage raised its target price to Rs 2,200 from Rs 1,500 while retaining an “Outperform” rating.

The proposed MDR remains prospective until implementation begins. Paytm’s wider recovery also depends on whether revenue growth, better operating efficiencies and improved cost management can support a seventh consecutive profitable quarter.

What must Paytm prove next?

Paytm’s next quarterly results will be the first test of the proposed UPI pricing benefit. The company must also convert the RBI’s in-principle authorisation into a final licence for wallet operations after completing system and cybersecurity audits.

For investors, three concrete checkpoints come next. First is the implementation of the 40 basis point MDR and any evidence of incremental revenue. Second is PPSL’s progress through the audits and toward final RBI authorisation. Third is whether Paytm extends its six-quarter profit streak as operating revenue continues to grow.

Those developments will show whether Paytm’s recovery can continue toward its Rs 2,150 IPO price. Until then, the stock’s case rests on six quarters of reported profit rather than revenue from revived wallets or the proposed MDR.