Akash Bhansali-Backed Fintech Stock Jumps 14% in 2 Days; Management Eyes 15-20% EBITDA Margin; Check Details

On Tuesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 153.50 points, or 0.62 per cent, to 24,430.30. Amid the market movement, One 97 Communications (Paytm) share price jumped 2.03 per cent to Rs 1,616.20, taking the stock's gain to around 14 per cent over the past two trading sessions.

Management's commentary during the July 21, 2026 concall has added to the focus around the fintech major's growth and profitability outlook. The company guided higher visibility on achieving an EBITDA margin of 15-20 per cent over the next two to three years and suggested that the target could be reached sooner than previously anticipated. Management also believes that the business has the potential to generate structural margins significantly above 20 per cent over the long term, although the company is currently prioritising investments to support growth.

Following an EBITDA margin of 8 per cent in Q1 FY27, management expects profitability to improve further in the subsequent quarters of the financial year. A key part of this improvement is expected to come from operating leverage, with indirect expenses expected to grow at a significantly slower pace than revenue.

The company expects its revenue growth momentum to remain broad-based, with acceleration across consumer payments, merchant payments and financial services. Management said the company plans to remain aggressive in acquiring consumers and merchants, particularly high-frequency retail customers and monetisable merchants, while avoiding what it described as reckless spending.

AI is also emerging as a potential new revenue opportunity for the company. Management expects AI-driven services within the commerce cloud and marketing cloud segments to start contributing through a separate revenue line item in the coming quarters, potentially within less than a year. At the same time, AI is expected to help improve operating efficiency by enabling the company to do more with less and reduce costs in areas such as collections and customer retention.

The company also plans to maintain its pace of adding between 25 lakh and 30 lakh merchant devices every year. Meanwhile, management is shifting greater focus towards wealth services, including equity brokerage and Mutual Fund distribution, and expects this business to become a material segment over the next year.

The Postpaid business is currently ramping up at twice the pace seen during its previous growth cycle, with management expecting the product to make a meaningful contribution to revenue and EBITDA over the coming years. The company has also expanded its lending partner base to a double-digit number and sees growth opportunities in personal and merchant loans over the next several years.

The company's cash position provides another important element of its strategy. Management stated that the business is now generating free cash flow and has cash reserves of Rs 13,500 crore. The company intends to retain these reserves as a financial strength for future opportunities.

The stock is also backed by investor Akash Bhanshali, who held a 1.24 per cent stake in One 97 Communications as of June 2026. His holding has remained unchanged at 1.24 per cent since June 2024, based on the shareholding data provided. FII holding stood at 48.09 per cent in June 2026, compared with 49.40 per cent in March 2026, while DII holding increased to 24.87 per cent from 23.08 per cent during the same period. Public shareholding stood at 27.04 per cent in June 2026.
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One 97 Communications shares were trading at Rs 1,616.20, up 2.03 per cent on Tuesday. The stock's 52-week high stands at Rs 1,639.90, recorded on August 11, 2026, while its 52-week low is Rs 930.60, recorded on March 30, 2026. The current price is around 1.45 per cent below its 52-week high.

Trading volume stood at 61.90 lakh shares compared with the 30-day average volume of 43.90 lakh shares. This means the day's volume was around 41 per cent higher than the 30-day average.

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Disclaimer: The article is for informational purposes only and not investment advice.