New Delhi. Shares of Paytm rose more than 11% during the trading session on Wednesday to a high of ₹ 769.50. By the end of the market, it closed 7.54 percent higher at Rs 738 on the NSE. This rise came after the company announced its Q2 results, after which the shares had declined. The approval given by NPCI allowed Paytm to add new UPI users, removing the earlier restrictions imposed by the Reserve Bank of India (RBI) this year.

This is being seen as a turning point for the growth of Paytm's user base. This can help reduce regulatory hurdles. Paytm's management has described this approval as a step that will allow the company to rapidly grow its user base again, which was affected by regulatory restrictions. Analysts at Emkay Global said that this regulatory approval will allow Paytm to grow while also optimizing costs, and profitability is expected by FY26 or FY27.

The company also reported its financial performance for Q2 FY25. The company reported a net profit of ₹930 crore, which included the money it received from selling its movie ticketing business to Zomato. However, Paytm's revenue from operations declined 34% year-on-year to ₹1,659 crore. Gross merchandise value (GMV) grew 5% for the quarter, and the company expects further growth in the coming quarters, supported by the festive season.

Analysts have projected various price targets for Paytm, with Jefferies having a target price of ₹700 with a 'buy' rating, while others such as UBS and Motilal Oswal have taken a more cautious stance, with target prices ranging between ₹490 and ₹550. Both the recent NPCI approval and Paytm's financial results indicate a transition period for the fintech company as it works towards long-term profitability and business consolidation.