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Fri, 04 Sept 2026
05:08:24 am
Fri, 04 Sept 2026
05:08:24 am
Rudransh Sangwan
Published at: July 20, 2026, 8:50 AM
Synopsis
Paytm parent One 97 Communications is expected to announce its first-ever bonus issue along with Q1 FY27 results today. Investors will watch the bonus ratio, record date and earnings closely.
Paytm is expected to make a major announcement on Monday as its parent company, One 97 Communications Ltd, prepares to consider its first-ever bonus issue of shares alongside its Q1 FY27 financial results. The proposed bonus issue has attracted significant attention from the company's nearly 7.5 lakh retail shareholders, who will closely monitor the bonus ratio, record date and quarterly earnings after the board meeting.
The expected announcement comes at a time when Paytm has reported improving financial performance, rising domestic institutional ownership and a sharp recovery in its share price from the lows recorded in 2024. The fintech company also reported its first full-year net profit in FY26, strengthening investor confidence after several years of regulatory challenges and business restructuring.
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According to the company's board agenda, One 97 Communications will consider a proposal for a bonus share issue while approving its financial results for the quarter ended June 30, 2026.
A bonus issue involves distributing additional shares to existing shareholders from the company's accumulated reserves without requiring any additional payment. Although a bonus issue does not change the company's overall market capitalisation, it increases the number of outstanding shares, improves stock liquidity and makes shares more affordable for retail investors.
The company had earlier completed an ₹850 crore share buyback through the open market in December 2022, making the proposed bonus issue another significant corporate action for shareholders.
The proposed bonus issue is particularly important for Paytm's 7.5 lakh retail shareholders, many of whom have witnessed significant volatility since the company's stock market debut in November 2021.
The shares were listed at ₹1,950, compared with the IPO issue price of ₹2,150, before declining nearly 86% to an all-time low of ₹310 in May 2024 amid regulatory concerns. Since then, the stock has staged a strong recovery as the company's financial performance improved and investor sentiment turned positive.
A bonus issue could improve liquidity by increasing the number of shares available for trading, although it does not increase the overall value of an investor's holdings immediately after issuance.
Despite short-term volatility, Paytm shares have recovered significantly over the past year.
| Particular | Performance |
|---|---|
| 1 Week | -3% |
| 1 Month | +23% |
| 2026 YTD | +4% |
| 1 Year | +34% |
| 3 Years | +58% |
| IPO Issue Price | ₹2,150 |
| Listing Price | ₹1,950 |
| Lifetime Low | ₹310 (May 2024) |
The stock's recovery has been supported by improving profitability, stronger operating performance and increasing confidence among institutional investors.
The expected bonus issue comes as domestic ownership in One 97 Communications continues to rise.
According to the latest shareholding pattern for the quarter ended June 30, 2026, domestic investors increased their stake to 51.6%, compared with 50.3% in the previous quarter. The increase reinforces Paytm's status as an Indian-Owned and Controlled Company (IOCC), a milestone it achieved in March 2026.
Domestic institutional investors also continued to increase their exposure. Their combined holding reached a record 24.9%, up from 23.1% in the previous quarter, while mutual fund ownership increased to 17.9% from 16.6%.
Several leading fund houses, including Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Nippon India Mutual Fund, Mirae Asset Mutual Fund and Kotak Mutual Fund, increased their holdings during the June quarter.
| Particular | Q1 FY27 | Previous Quarter |
|---|---|---|
| Domestic Ownership | 51.6% | 50.3% |
| Domestic Institutional Holding | 24.9% | 23.1% |
| Mutual Fund Holding | 17.9% | 16.6% |
| Number of Mutual Funds | 43 | 41 |
Apart from the proposed bonus issue, investors will closely track Paytm's Q1 FY27 earnings, which will provide an update on the company's operational momentum after reporting its first profitable financial year.
For FY26, the company reported its first full-year net profit of ₹552 crore. Revenue from operations increased 22% year-on-year to ₹8,437 crore, while EBITDA stood at ₹502 crore, improving by ₹2,008 crore compared with the previous year.
| Particular | FY26 |
|---|---|
| Net Profit | ₹552 crore |
| Revenue from Operations | ₹8,437 crore |
| EBITDA | ₹502 crore |
| EBITDA Improvement | ₹2,008 crore |
The quarterly earnings announcement is expected to indicate whether the company has maintained its growth momentum in payments, merchant services and financial products.
Improving financial performance has also attracted positive commentary from global brokerage firms.
Goldman Sachs recently maintained a positive stance on Paytm, raising its revenue estimates by 2% and EBITDA forecasts by up to 6%. The brokerage cited continued market share gains in digital payments and sustained growth in financial services as key reasons for its optimism.
According to the brokerage, the stock could witness further valuation re-rating if the company continues to deliver revenue growth of more than 20% over the coming quarters.
The outcome of today's board meeting could become one of the most closely tracked corporate developments for Paytm this year. Investors will monitor the bonus share ratio, record date, Q1 FY27 financial results, management commentary and future growth outlook to assess the company's next phase after returning to profitability.
One 97 Communications Ltd, the parent company of Paytm, operates one of India's largest digital payments and financial services platforms. The company offers mobile payments, merchant solutions, UPI services, lending distribution, wealth management, insurance products and commerce solutions, serving millions of consumers and merchants across the country.
Paytm is expected to announce its first-ever bonus share issue along with its Q1 FY27 financial results after the board meeting scheduled for July 20, 2026.
A bonus issue is the distribution of additional shares to existing shareholders using a company's reserves. It does not change the total value of an investor's holdings but increases the number of shares owned and generally improves stock liquidity.
According to the latest available data, Paytm has around 7.5 lakh retail shareholders, many of whom are closely watching the company's bonus issue announcement.
For FY26, Paytm reported its first full-year net profit of ₹552 crore, while revenue from operations increased 22% year-on-year to ₹8,437 crore and EBITDA improved to ₹502 crore.
Investors will closely monitor the bonus share ratio, record date, Q1 FY27 earnings, management commentary and any updates on the company's business outlook and future growth strategy.
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