India's Paytm set for MDR boost after strong Q2, analysts say

By Reuters News

** Indian fintech firm Paytm PAYT.NS posts Q2 profit surge and says UPI fee rollout could add ~2.5 bps to payment processing margins

** The UPI fee rollout adds to PAYT's earnings momentum, analysts say

** Citi ("buy," PT: 1,940 rupees) says EBITDA beats estimates as payment margins improve and financial services revenue growth accelerates to 49%

** Morgan Stanley ("equal-weight," PT: 1,450 rupees) says PAYT had clean operating beat driven by stronger revenue and financial services growth, adding MDR on select UPI transactions could lift payment profitability

** Jefferies ("hold," PT: 1,320 rupees) says momentum remains strong across payments and lending businesses, with MDR providing an additional earnings lever over the medium term

** Avg rating of 22 analysts on stock is "buy"; median PT is 1,980 rupees -- LSEG compiled data

** YTD, stock up 26.2%

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