Shares of One 97 Communications, the parent company of India’s Paytm, surged in early trading as global brokerages raised their target prices following the firm’s first-quarter fiscal 2027 results.
The upgrades reflect a shift in sentiment toward the digital payments major, with analysts citing robust revenue growth and a marked improvement in profit margins as evidence that the company is executing effectively in a competitive market.
The positive reception from sell-side analysts contrasts with earlier market hesitation.
Despite reporting a significant improvement in profitability, One 97 shares previously failed to sustain early momentum, suggesting that investors had been cautious about the sustainability of the turnaround.
The latest wave of target price increases indicates that brokerages now view the June-quarter performance as a credible inflection point rather than a one-off anomaly.
The optimism stems from the company’s ability to navigate a market characterized by a large profit pool, where execution discipline is critical.
Analysts highlighted that Paytm is not only growing its top line but also managing its cost structure to deliver bottom-line results.