Paytm shares hit 6-month high today: Here we decode why
What's the story
Paytm's parent company, One 97 Communications, has seen its shares surge by nearly 3% today. The stock touched a high of ₹1,014, crossing ₹1,000 mark for the first time in six months. This is also its fifth consecutive session of gains. The stock was last around this level in early January but couldn't hold on and corrected over two months before gaining momentum in March. The recent surge is attributed to speculation of its inclusion in the MSCI Standard Index.
Impact
Inflows worth $212M expected
Motilal Oswal, a brokerage firm, said there is a high probability of Paytm's upgrade from the MSCI Smallcap Index to the Standard Index during the upcoming rebalancing in August. If this happens, Motilal Oswal estimates inflows worth $212 million could follow these index changes.
Recovery
Shares have rebounded 230%
After touching an all-time low of ₹310 in May last year, Paytm staged a strong recovery, surging 230% to end the year at ₹1,017. This sharp rebound is largely due to the firm's improving performance across multiple business segments. Mutual funds have also shown growing confidence in Paytm's growth prospects. According to Q1 FY26 shareholding data, domestic mutual funds held a 13.86% stake in Paytm, up from 13.11% in the March quarter.
Earnings forecast
Paytm will announce Q1 results on July 22
Paytm is set to announce its June quarter results on July 22. Analysts are expecting a strong performance, possibly marking the company's first profitable quarter on a profit after tax (PAT) basis. JM Financial predicts that the Payment Services revenue (excluding UPI incentives) will surge by 6% QoQ and 21% YoY. The merchant subscriber base is also projected to grow by roughly 7% QoQ (22% YoY) to reach 13.3 million.