Paytm achieved IOCC status as domestic ownership hit 50.3% in March 2026
Foreign shareholding dropped to 49.4%, down from 51.76% in the previous quarter
Mutual fund ownership rose to 16.6%, with domestic institutions now holding a record 23.1%
Fintech platform Paytm has effectively turned into an Indian Owned and Controlled Company (IOCC) after foreign institutional investors reduced their stake during the March quarter, pushing foreign ownership below 50%, according to exchange filing data.
Foreign shareholding declined to 49.4% in Q4 FY26 from 51.76% in Q3 FY26, while domestic institutional investors increased their stake to 23.08% from 20.32%. In an exchange filing, Paytm said domestic investors now hold 50.3% of its equity share capital, establishing majority Indian ownership and control.
1 April 2026
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Which Category Led the Cut?
The decline in foreign ownership was driven by reduced holdings across multiple foreign portfolio investor (FPI) categories.
Category I FPIs, including sovereign wealth funds, central banks and pension funds, cut their stake to 23.77% from 25.33%, with the number of such investors falling to 558 from 613.
Category II FPIs, which include mutual funds, banks and insurers, reduced their holdings to 0.48% from 1.24%, with 19 investors from this category exiting the company’s cap table. Foreign direct investment also declined marginally by 15 basis points quarter-on-quarter to 25.18%.
Domestic Investors Backed Paytm
The drop in foreign ownership coincided with a broader pullback by overseas investors from Indian equities. FPIs sold shares worth ₹1.17 lakh crore during the March quarter, exerting pressure on foreign holdings across listed companies, including Paytm.
At the same time, domestic institutions increased their exposure to the company led by Vijay Shekhar Sharma.
Mutual fund ownership rose significantly to 16.6% from 14.34%, with five new mutual funds joining Paytm’s shareholder base during the quarter, taking the total number to 51. Among the new entrants was Bandhan Bank’s Large and Mid Cap Fund, which acquired a 1.32% stake. Insurance companies also raised their holding to 5.08% from 4.77%.
This shift in ownership comes as Paytm shows improving financial performance. The company reported a net profit of ₹122.5 crore in Q1 FY26 and followed it with a profit of ₹225 crore in Q3 on operating revenue of ₹2,194 crore. Reflecting the improved sentiment, Paytm’s stock closed 2.9% higher at ₹1,139.4 on the BSE.
