Paytm Share Price Erases Early Gains, Slides 3% After Q1 Results and Bonus Issue Decision

One 97 Communications, the listed parent of digital payments and financial services platform Paytm reported a strong set of earnings for the April-June quarter, with consolidated net profit rising 79% year-on-year. Alongside the results, the company also approved an additional investment in subsidiary Paytm Money and proposed changes to the utilisation of its remaining IPO proceeds.

Paytm Share Price Today

Paytm shares opened at ₹1,339.80 on the BSE, slightly below the previous close of ₹1,348. The stock climbed to an intraday high of ₹1,382.90, gaining around 2.6%, before reversing course.

It later slipped to an intraday low of ₹1,311.65, down about 2.7% from the previous close and nearly 5% below the day's high.

Despite Tuesday's decline, Paytm shares have gained around 5% so far in 2026 and about 34% over the past 12 months. During the same period, the BSE Sensex has declined around 8.9% and 5.5%, respectively.

Over the past two years, the stock has rallied around 197%, according to BSE data. However, it continues to trade significantly below its IPO issue price of ₹2,150 nearly five years after its stock market debut.

Paytm Q1 FY27 Results

One 97 Communications reported a consolidated net profit of ₹220 crore for the quarter ended June 30, 2026, up 79% from ₹123 crore in the corresponding quarter last year. Profit also increased 19.5% sequentially from ₹184 crore reported in Q4 FY26.

Revenue from operations rose 27.6% year-on-year to ₹2,448 crore from ₹1,918 crore and was 8.1% higher than ₹2,264 crore reported in the preceding quarter.

Other income declined 24.5% year-on-year to ₹182 crore, although it was marginally higher than the previous quarter. Total expenses increased 18.2% to ₹2,383 crore, with payment processing costs rising 36% year-on-year to ₹794 crore.

Board Decides Against Bonus Issue

The company's board considered a proposal to issue bonus shares but decided not to proceed with it.

In an exchange filing, One 97 Communications said the board believes continuing to focus on long-term growth and profitability would create greater shareholder value than issuing bonus shares at this stage.

Paytm Money Investment, IPO Proceeds Plan

The board also approved an additional investment of ₹100 crore in wholly owned subsidiary Paytm Money, subject to the necessary approvals. The funds will be used for technology investments, regulatory capital requirements and expanding its investment and wealth management business.

Separately, the company approved a proposal to seek shareholders' approval to revise the utilisation of its remaining ₹1,686 crore in unutilised IPO proceeds. The proposed deployment includes customer and merchant acquisition, new business initiatives, acquisitions and strategic partnerships, while the utilisation timeline has been extended until March 31, 2029.

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