New Delhi [India], September 7 (ANI): Haitong International expects Paytm to be able to fund its future expansion through internal accruals, supported by a strong treasury portfolio, improving operating metrics and expanding profitability, potentially limiting the requirement for an external fund raise.

In its latest report on One97 Communications, Haitong said Paytm has faced multiple regulatory hurdles in the past but has *"emerged quite strong" by taking timely corrective actions, while also pointing to management's approach in navigating these concerns. The brokerage maintained its **Outperform* rating with a target price of *1,980*. 

Haitong said Paytm's strong treasury portfolio and healthy operating metrics, supported by improving EBITDA margins, should make internal accruals sufficient to support future expansion plans. The report noted a treasury portfolio of around *135 billion as of March 2026*. 

The brokerage expects Paytm's revenue to grow at around *30% CAGR over FY26 to FY28, while EBITDA and profit after tax are estimated to grow roughly five-fold over the period. Haitong expects PAT to reach around *26.7 billion by FY28**, compared with 5.5 billion in FY26. 

Haitong also expects continued application of AI across the organisation to support faster revenue growth and greater operating leverage, helping drive further EBITDA margin expansion. It expects Paytm's core EBITDA margin to reach around *19% by FY28*. 

The report also highlighted improving operating efficiency, noting that employee expenses declined *16% year-on-year to around 26 billion in FY26, even as Paytm added about **9,400 sales employees* over the year. 

Haitong further expects Paytm to remain *asset light and partnership led in lending distribution*, while increasing its focus on wealth businesses including equity broking, margin trading facility and mutual fund distribution, which it expects to contribute meaningfully to revenue and profitability over time. (ANI)