Paytm stock hits 52-week high after NPCI introduces UPI MDR
The stock opened sharply higher at ₹1,830 and has seen heavy trading volume of over 1.09 crore shares worth ₹1,956 crore so far in the session
Shares of One 97 Communications, also known as Paytm, reached a 52-week high on Wednesday morning on the NSE. The stock traded at ₹1,749.50, a 1.13 per cent increase from Tuesday's close of ₹1,730. Trading commenced at ₹1,830 and the session saw heavy trading volume, surpassing 1.09 crore shares worth ₹1,956 crore. The surge in stock price is attributed to a recent announcement by the National Payments Corporation of India (NPCI) regarding the introduction of a Merchant Discount Rate (MDR) of up to 0.4 per cent on UPI Person-to-Merchant transactions exceeding ₹2,000.
This decision, outlined in the NPCI circular numbered NPCI/UPI/OC-No.237/2026-27 dated September 15, 2026, will come into effect from October 15, 2026. Paytm operates one of India's largest merchant payment networks, boasting 1.51 crore device merchants. The new MDR framework is expected to provide a significant revenue boost for Paytm, with Goldman Sachs estimating a potential 40-70 per cent upside to Paytm's FY28 EBITDA, amounting to around ₹1,400 crore in a high-end scenario.
Citi projected a total ecosystem impact of ₹16,000-17,000 crore annually, with around 25 per cent of the gains accruing to UPI app providers like Paytm. JPMorgan estimated the total revenue pool at ₹17,000 crore, deeming the framework positive but noting its uneven distribution across players. Paytm, which reported its first full-year profit in FY26 with a profit after tax (PAT) of ₹552 crore, intends to release further disclosures once the financial impact of the new circular is ascertained.
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