Paytm Drops Bonus Issue Proposal For Now, Prioritises Growth; Reports Strong Q1 Numbers

One 97 Communications, the parent of Paytm, has decided against proceeding with its proposed bonus share issue for the time being. The company's board discussed the proposal at its meeting on 20 July but chose not to move forward with it at this stage, citing a preference to focus on compounding growth and profitability for long-term shareholder value creation.

No timeline has been shared for when the proposal might be revisited, though the company said it may consider it at a later date.

Paytm had told stock exchanges on 15 July that its board would consider a bonus issue alongside the June quarter results. No bonus ratio or record date had been announced.

Had it gone through, it would have been the company's first bonus issue since its November 2021 listing. The company had raised ₹18,300 crore through its initial public offering (IPO), which was priced at ₹2,150 per share.

Strong Q1 Numbers

The board meeting was also where Paytm announced its June quarter results. Net profit rose 79% year-on-year to ₹220 crore from ₹123 crore a year earlier. Revenue from operations grew 28% to ₹2,448 crore from ₹1,918 crore in the same period last year. Sequentially, both net profit and revenue improved from the March quarter's ₹183 crore and ₹2,264 crore respectively.

For the full year FY26, Paytm reported its first annual profit at ₹552 crore, reversing a loss of ₹663 crore in FY25. Revenue from operations rose 22% to ₹8,437 crore.

Not The First Time A Bonus Issue Has Been Deferred

Paytm is not alone in having stepped back from a bonus issue proposal. Several listed companies have done the same in recent years.

Indus Towers announced in May 2025 that it would consider rewarding shareholders through a bonus issue, buyback, debentures or dividends, but deferred the proposal at the subsequent board meeting. A committee was formed to study the options further. The company eventually announced a dividend of ₹14 per share.

NTPC had announced in January 2019 that it would consider a bonus issue, only to defer it before eventually approving a 1:5 bonus in February 2019.

RITES had planned a bonus issue at the start of 2020 but shelved the proposal when the Covid-19 pandemic hit. The company conserved cash and finally approved a 1:1 bonus in 2024.

SJVN had been expected to consider a bonus issue alongside its Q3 FY20 results in January 2019 but deferred the proposal to a later board meeting. As of now, no bonus issue has been declared, though the company has paid dividends of close to ₹13 per share since then.

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