Paytm Shares Soar 6% on RBI Nod for Payment Aggregator Licence; Stock Up 20% in a Month; More Rally Ahead?

Paytm's parent organisation, One97 Communication, is in the spotlight this morning in the stock market after the Reserve Bank of India granted its subsidiary Paytm Payments Services Ltd., an in-principle approval to operate as an online payment aggregator. Paytm shares opened strong, surging 5% in the opening bell and hitting an intraday high of Rs. 1,187 on the NSE.

Paytm Gets RBI Approval to Restart Online Payment Services

The Reserve Bank of India (RBI) has given permission to Paytm Payments Services Ltd., a part of One97 Communications, to start signing up new merchants and offer online payment services across India again. This approval comes after RBI had put restrictions on Paytm since November 2022.

The RBI's approval means the earlier ban on adding new online sellers is now lifted. However, Paytm must complete a full system check, including cybersecurity tests, and send the report to RBI within six months. If Paytm doesn't do this, the approval will expire, and they won't get the final go-ahead.

Paytm Share Price Movements

Following the RBI's approval, Paytm shares opened at Rs. 1,176 on August 13, up 5% from the previous close of Rs. 1,120 per share. Over the past five trading days, Paytm share price has gained more than 10%, while it has surged over 20% in the past month. In fact, Paytm shares have rallied nearly 55% over the last six months amid strong buying interest.

Paytm Q1 FY26 Financial Results

The positive regulatory development comes just weeks after Paytm posted its first-ever quarterly profit in June 2025. For the quarter ended June 30, 2025, One97 Communications reported a consolidated net profit of Rs. 123 crore, a dramatic turnaround from a net loss of Rs. 839 crore in the same quarter last year.

The company's EBITDA stood at Rs. 72 crore for Q1 FY26, reversing losses recorded in the previous two quarters. Revenue from operations increased by 28% year-on-year to Rs. 1,918 crore, while total income, including other income, reached Rs. 2,159 crore.

Paytm share price target

In a recent report dated July 22, Motilal Oswal Financial Services assigned a Neutral rating to Paytm shares, citing the company's strong cash cushion of INR 161 billion as a comfort factor., the brokerage firm stated, "PAYTM's INR 161b cash cushion offers comfort; consistent delivery is critical for sustainable shareholder returns."We maintain our contribution profit estimates and project PAYTM to turn EBITDA positive by FY26. We value PAYTM at INR1,025 based on 21x FY27E EBITDA, which corresponds to 6.8x FY27E sales. We reiterate our Neutral rating on the stock."

Meanwhile, Citi has maintained a Buy rating on Paytm, with the current market price (CMP) at Rs. 1,118.5 and a target price of Rs. 1,215.The brokerage stated, "that the Reserve Bank of India (RBI) has granted in-principle approval for Paytm's unit to operate as an online payment aggregator, a significant regulatory development. Since November 2022, Paytm had been barred from onboarding new online merchants, though it continued serving existing ones. This licence approval lifts a major regulatory overhang, boosting market sentiment. With the ban lifted, Paytm can now leverage its scale and product capabilities more effectively to compete in the rapidly growing digital payments space."

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