Paytm Payments Services gets RBI nod to operate as payment aggregator

The filing added that the CoA and supporting details, as required under SEBI’s Master Circular, have been made available on the company’s investor relations website.

Noida-based payments major, One 97 Communications Limited, on Wednesday said its wholly owned subsidiary, Paytm Payments Services Limited (PPSL), has received the Reserve Bank of India’s (RBI) Certificate of Authorisation (CoA) to operate as a Payment Aggregator under the Payment and Settlement Systems Act, 2007.

In a regulatory filing, the company informed stock exchanges that the central bank granted the authorisation on November 26, 2025. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

According to the filing, the licence will enable PPSL to continue offering payment aggregation services, and growth in this business segment will reflect in the consolidated financials of One 97 Communications Limited.

The company also attached the RBI’s formal Certificate of Authorisation, issued by the Department of Payment and Settlement Systems, stating that PPSL has been permitted to operate as a payment aggregator with effect from November 26.

Meanwhile,  Paytm is beginning to see a shift in market sentiment as its drive toward sustained profitability gains traction, with several brokerages turning progressively positive on the company over recent quarters.

Having posted profits for a second consecutive quarter, Paytm’s consistency has reinforced its financial fundamentals and prompted a multi-quarter re-rating from leading brokerages such as JM Financial, Emkay, Jefferies and Bernstein. Analysts say the upward cycle could continue, noting that the company remains conservatively valued compared to large internet peers including Nykaa, FirstCry, PB Fintech and Zomato.

In a review of Paytm’s Q2 FY26 results, JM Financial said the stock offers an “attractive risk-reward at current market price”. The brokerage noted that by FY28, Paytm’s earnings profile is expected to strengthen sharply, with Profit After Tax projected to rise to Rs 2,484.7 crore. Yet, it said, the company trades at a modest 28.4x its FY28 PAT estimate — well below the multiples commanded by other internet companies.

Despite a strong revenue and profitability outlook, Paytm’s market capitalisation stands at about Rs 86,100 crore — lower than PB Fintech’s Rs 89,000 crore and significantly below Zomato’s Rs 3.02 lakh crore. Analysts argue that Paytm’s deepening profitability through FY26–FY28 leaves significant room for further value discovery.

Following its Q2 FY26 performance, several top brokerage houses — including Dolat Capital, Bernstein, JM Financial, Mirae Asset Capital Markets, Emkay Global and YES Securities — reiterated positive calls on the stock. They cited Paytm’s disciplined cost controls, robust operating metrics and the rising contribution from AI-led products as key drivers of margin expansion and scalability.

Bernstein raised its target price to Rs 1,600 while maintaining an ‘Outperform’ rating, highlighting “accelerated improvement in margins” and “healthy GMV growth”. Emkay Global also retained its Buy rating and lifted its target price to Rs 1,600 from Rs 1,500, pointing to strong execution, expanding profitability and a long runway for growth.