Paytm Board To Consider First Bonus Share Issue Alongside Q1 Results

Paytm's parent, One97 Communications, will hold a board meeting on July 20 to evaluate a potential bonus share distribution alongside its first-quarter financial results.

Approval would yield the first such distribution since the firm went public five years ago. Details on the ratio and eligibility cutoff remain undisclosed.

The company last undertook a corporate action in December 2022, when it completed an open market share buyback worth ₹850 crore.

Paytm made its stock market debut in 2021, listing below its issue price of ₹2,150 per share, a level the stock has yet to revisit. The stock later fell to a record low of around ₹300 amid regulatory challenges and concerns over its path to profitability.

Rising Domestic Ownership

The proposed bonus issue comes as domestic ownership in the company continues to rise. Domestic investors held around 51.6% in the company for the quarter ended June 30, 2026, up from 50.3% in the previous quarter.

This increase strengthens Paytm's status as an Indian-Owned and Controlled Company (IOCC), a milestone it first achieved in March 2026.

Domestic institutional ownership also reached a record high of 24.9% during Q1FY27, compared with 23.1% in the previous quarter. Mutual funds increased their combined holding to 17.9% from 16.6%, while the number of mutual funds invested in the company rose to 43 from 41.

Funds managed by Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Nippon Mutual Fund, Mirae Asset Fund and Kotak Mutual Fund were among the domestic investors that increased their stakes during the quarter. Domestic insurance companies also raised their combined holding to 5.3% from 5.1%, led by SBI Life Insurance.

Improving Financial Performance

The steady increase in domestic ownership follows an improvement in the company's financial performance. In FY26, Paytm reported its first full-year profit, with profit after tax of ₹552 crore.

Revenue from operations rose 22% year-on-year to ₹8,437 crore, while EBITDA stood at ₹502 crore, improving by ₹2,008 crore from a year earlier.

The improving fundamentals have also attracted positive commentary from global brokerages. Goldman Sachs retained a positive view on the stock last month, raising its revenue estimates by 2% and EBITDA estimates by up to 6%.

The brokerage cited "continued market share gains in the payments business and strong growth in financial services". Goldman Sachs further stated that Paytm's valuation multiple could see further re-rating if the company continues to deliver revenue growth of more than 20%.