Shares of prominent Indian payment technology companies, including One 97 Communications Ltd (Paytm), One Mobikwik Systems Ltd, Pine Labs Ltd, and AvenuesAI Ltd, saw significant declines in Thursday's trading, with some stocks falling as much as 10%.
The sharp sell-off was triggered by market reports suggesting that authorities are considering postponing the implementation of merchant discount rates (MDR) on Unified Payments Interface (UPI) transactions. The proposed delay would shift the introduction date from October 15, 2026, to January 1, 2027.
Impact of Potential UPI MDR Delay
According to reports from Business Standard and Bloomberg, citing sources familiar with the matter, this decision aims to keep UPI payments free for merchants through the crucial festive season, partly due to pushback from retail investors. A panel headed by the National Payments Corporation of India (NPCI) is reportedly scheduled to meet today to deliberate on the issue.
Analysts had widely anticipated the introduction of UPI MDR as a material positive event for these payment-focused companies, expecting it to significantly boost their revenue streams and profitability. The potential delay has, therefore, led to a re-evaluation of these expectations by investors.
Stock Performance Details
- Paytm (One 97 Communications Ltd): The stock was locked at its 10% lower circuit limit of Rs 1,734 apiece on the BSE, marking its most substantial single-day fall since February 1.
- One Mobikwik Systems Ltd: Shares plunged 8.35% to Rs 234.60.
- Pine Labs Ltd: The stock was down 3.91%, trading at Rs 170.60.
- AvenuesAI Ltd: Shares fell 2.44% to Rs 15.18.
The decline in Paytm's stock occurred despite Goldman Sachs analyst Manish Adukia recently raising his target price for the company to Rs 2,070 from Rs 1,500. Adukia had cited strong underlying market share, revenue growth, and margin momentum, noting that the previously expected UPI MDR was projected to drive up to 40% EBITDA upgrades for Paytm, which he believed was not fully reflected in the then-current share price. The market's current reaction, however, prioritizes the immediate impact of the potential delay over long-term analyst projections.