Paytm Achieves Majority Indian Ownership Amid Rising Domestic Stakes

By Kotak News Desk
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15 Apr 2026 at 1:22 PM IST
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Market News
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4m

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Summary

One 97 Communications is largely held by Indians, with domestic investors owning 50.3% as of March 2026. The trend shows increased investor confidence, as well as better profitability and operational success.

One 97 Communications Ltd, Paytm's parent company, has become a majority Indian owned and controlled company.

By the end of March 2026, domestic shareholding increased to 50.3%, which is a structural change in ownership of the fintech company.

This development indicates a progressive growth in the number of local investors in the past few quarters.

Who Is Driving The Increase In Domestic Ownership?

Domestic institutional investors (DIIs) played a key role in this transition. They raised their stake to 23.1% in the March quarter. That’s up 2.8 percentage points from the previous quarter and 9.1 percentage points higher than last year.

Mutual funds also spearheaded the growth. Their holdings rose to 16.6%, compared to 14.3% in the previous quarter. It also saw an increase in the number of funds that invested in the company, increasing to 41 as compared to 36.

Funds such as Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, and Bandhan Mutual Fund expanded their exposure.

The insurance companies also became 5.1% stakeholders, with insurance companies such as Tata AIA Life Insurance and SBI Life increasing their contributions.

How Is Paytm Performing Operationally?

The increase in domestic ownership is accompanied by an increase in business performance. The company recorded its third consecutive quarterly profitability in the December period with a net profit of ₹225 crore.

The annual revenue increased by 20% to 2,194 crore, and the earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹156 crore with a margin of 7%.

Its merchant ecosystem also expanded, with subscription merchants crossing 1.44 crore, reflecting 24% annual growth.

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What Are Brokerages Saying?

Brokerages have turned positive on the company’s outlook. The stock was upgraded by Bank of America on the basis of greater monetisation and increasing profitability, particularly in merchant payments and lending.

Bernstein was also optimistic and pointed to the strength of the company's revenue in the merchant segment and its movement towards profitability.

Sources:

The Economic Times

Fortune India

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

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