Paytm Achieves Majority Indian Ownership Following Stake Increase by Domestic Investors

Paytm Becomes Majority Indian-Owned and Controlled Company

One 97 Communications Ltd, the parent company of the Paytm brand, has undergone a significant change in ownership as domestic investors have increased their stake to 50.3 per cent by the end of March 2026. This shift marks a structural change in the fintech firm's ownership, with domestic shareholding rising steadily in recent quarters, reflecting growing investor confidence.

According to regulatory filings, domestic institutional investors have raised their stake to a record 23.1 per cent in the March quarter, a 2.8 percentage point sequential increase and a 9.1 percentage point increase from a year earlier. Mutual funds led the increase, with their holdings climbing to 16.6 per cent from 14.3 per cent in the previous quarter. The number of funds investing in the company rose to 41 from 36, with notable entities such as Motilal Oswal Mutual Fund, Mirae Asset, and Bandhan Mutual Fund continuing to expand their shareholding.

Insurance companies also added to their positions, taking their combined stake to 5.1 per cent from about 4.8 per cent earlier. Players such as Tata AIA Life Insurance and SBI Life Insurance have increased their exposure in the company.

The rise in domestic ownership comes alongside an improvement in the company's operating performance. One 97 Communications Ltd reported its third consecutive profitable quarter in the December quarter, posting a net profit of Rs 225 crore. Revenue rose 20 per cent year-on-year to Rs 2,194 crore, while EBITDA stood at Rs 156 crore with margins at 7 per cent. The company's merchant base also continued to expand, with subscription merchants crossing 1.44 crore, a 24 per cent increase over the year.

Brokerages have noted improving fundamentals, with Bank of America upgrading the stock, citing stronger monetisation and profitability, particularly in merchant payments and lending. Bernstein has also highlighted the company's revenue advantage in the merchant business and maintained a positive view on its earnings trajectory.

| Brokerage | Rating | Target Price | | --- | --- | --- | | Bank of America | Buy | Rs 1,380 | | Bernstein | Outperform | - |

The brokerage has noted that 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.