1. Introduction
One 97 Communications (Paytm) has been the talk of Dalal Street this week. After years of struggle, the stock has staged a massive comeback, hitting a 4-year high of ₹1,365 today.
With the stock rallying over 18% in just two months, many retail investors are asking: Is the worst over? Is this the start of a new bull run, or a trap for late entrants?
In this article, we analyze the latest RBI approvals, Q2 results, and technical charts to give you a clear answer.
2.Why is Paytm Trending Now?
The sudden jump in Paytm’s share price isn’t random. It is driven by three massive triggers:
- RBI Approval (The Big Relief): On November 26, 2025, the RBI finally granted the Certificate of Authorization (CoA) to Paytm Payments Services Limited (PPSL). This allows Paytm to restart onboarding new online merchants—a huge revenue engine that was stuck for years.
- Goldman Sachs Upgrade: Global brokerage Goldman Sachs recently upgraded the stock to “BUY” with a target price of ₹1,570, signaling renewed confidence in the fintech giant.
- Turnaround to Profitability: In the recent Q2 FY26 results, Paytm reported a Net Profit of ₹21 Cr, a significant turnaround from the heavy losses of the past.
3.Fundamental Analysis (The Numbers)
Let’s look at the financial health of the company as of December 2025.
| Metric | Value | Comment |
| Current Price | ₹1,365 | Trading at 52-Week High |
| Market Cap | ₹86,400 Cr | Mid-Cap Tech Giant |
| Q2 FY26 Revenue | ₹2,283 Cr | Up 24.5% YoY |
| Net Profit (Q2) | ₹21 Cr | Turned Profitable |
| Debt to Equity | 0.01 | Virtually Debt-Free |
My View: The most important number here is the Net Profit. Paytm has finally proven it can make money without burning cash. This justifies the recent price rally.
4. Technical Analysis (Support & Resistance)
Technically, the stock is in a strong Uptrend.
- Breakout: The stock recently broke the psychological resistance of ₹1,250 and is sustaining above it.
- Support Level: The immediate strong support is at ₹1,220. As long as it stays above this, the trend is bullish.
- Next Target: With the current momentum, the stock is heading towards ₹1,450 – ₹1,570 in the short term.
5.Pros and Cons
✅ Pros:
- Regulatory Clarity: The biggest risk (RBI ban) is now behind them.
- Institutional Buying: Mutual Funds and FIIs have increased their stake in the last quarter.
- Zero Debt: The company is cash-rich and debt-free.
❌ Cons:
- High Valuation: After a 40% run-up in 2025, the stock is not “cheap” anymore.
- Competition: PhonePe and Google Pay still dominate the UPI market share.
6.Conclusion: Should You Invest?
Final Verdict: In my opinion, Paytm has shifted from a “Risk” to a “Growth” stock in 2025.
- For Long-Term Investors: BUY. The regulatory hurdles are gone, and the company is profitable. Any dip towards ₹1,250 is a great accumulation opportunity.
- For Traders: HOLD. If you bought at lower levels, trail your stop-loss to ₹1,280 and ride the trend to ₹1,500.
Disclaimer: I am not a SEBI registered advisor. This analysis is for educational purposes only. Please consult your financial advisor before investing.
