Mumbai, Oct. 8 -- Goldman Sachs expects Paytm's EBITDA to more than double in FY27 from FY26 and double again in FY28, even without the benefit of the UPI merchant discount rate (MDR), on back of steady UPI market share gains, shift towards higher-margin payment products, and sustained cost control.

The brokerage reiterated its 'Buy' rating on One 97 Communications, Paytm's parent, and raised its 12-month target price to Rs 2,070 from Rs 1,500. It also raised its FY27-30 revenue estimates to 26% from 8% previously and EBITDA estimates to 40%.

After factoring in MDR, Goldman expects Paytm's FY28 EBITDA to be 5-6 times its FY26 level of Rs 500 crore, followed by around 30% annual growth until FY30. Its revised estimates put EBITDA at Rs 1...