Paytm ownership shift: Domestic investors cross 50% stake; firm turns majority Indian-controlled

One 97 Communications Ltd, which operates the Paytm brand, has become a majority Indian-owned and controlled company after domestic investors raised their stake to 50.3% as of March-end 2026, PTI reported.

The shift marks a structural change in ownership for the fintech firm, with domestic shareholding rising steadily in recent quarters, reflecting growing investor confidence.

Domestic institutional investors increased their stake to a record 23.1% in the March quarter, up 2.8 percentage points sequentially and 9.1 percentage points from a year earlier, according to regulatory filings.

Mutual funds led the increase, with holdings rising to 16.6% from 14.3% in the previous quarter, while the number of funds investing in the company grew to 41 from 36. Entities such as Motilal Oswal Mutual Fund, Mirae Asset and Bandhan Mutual Fund continued to expand their shareholding.
Insurance companies also added to their exposure, taking their combined stake to 5.1% from about 4.8% earlier. Firms including Tata AIA Life Insurance and SBI Life Insurance were among those increasing positions.

The rise in domestic ownership comes alongside improving operating performance. The company reported its third consecutive profitable quarter in the December quarter, posting a net profit of Rs 225 crore, while revenue rose 20% year-on-year to Rs 2,194 crore.

EBITDA stood at Rs 156 crore, with margins at 7%. The company’s merchant base also expanded, with subscription merchants crossing 1.44 crore, up 24% over the year.

Brokerages have flagged improving fundamentals. Bank of America upgraded the stock, citing stronger monetisation and profitability, particularly in merchant payments and lending.

The brokerage said Paytm is “strong in B2B” and “is ahead in its monetisation journey with a more diversified business mix and better margins,” driven by strength in merchant payments and lending. It maintained a ‘Buy’ rating with a target price of Rs 1,380.

Bernstein also highlighted Paytm’s monetisation advantage, noting that its merchant revenues are roughly twice that of its nearest competitor despite similar payment volumes, and maintained an outperform rating on the stock.

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