PAYTM

sees Jefferies slash target price post PIDF expiry, yet brokerage retains ‘Buy’

core business remains robust, even as the loss of Payments Infrastructure Development Fund (PIDF) incentives weighs on near‑term earnings, according to Jefferies. During FY25 and the first half of FY26, Paytm received substantial incentive income under the PIDF scheme, including over Rs 100 crore in 1HFY26 alone, which had provided a significant boost to its adjusted EBITDA. With the scheme not extended beyond December 2025, Jefferies has excluded this income from its forward projections. Consequently, the brokerage has lowered its adjusted EBITDA forecasts for FY27 and FY28 and trimmed its price target. However, Jefferies emphasises that the impact stems purely from the withdrawal of incentives and does not indicate any deterioration in Paytm’s underlying business fundamentals. As a result, it has maintained its 'Buy' rating on the stock.