Paytm shares edge lower ahead of Q1 results; board to consider first-ever bonus issue

Shares of One97 Communications, the parent of Paytm, slipped up to 1% in intraday trade on Monday as investors turned cautious ahead of the fintech major's June-quarter earnings announcement. The company's board is also scheduled to consider a proposal for a bonus share issue.

Ahead of its Q1 results, Paytm shares fell as much as 1% to ₹1,357.15 in early trade on the BSE. The stock later pared most of its losses and was trading marginally lower at around ₹1,346.75, valuing the company at a market capitalisation of ₹86,284 crore.

Paytm shares had touched a 52-week high of ₹1,407 on July 15, 2026, rebounding 48.5% from their 52-week low of ₹947.10 hit on March 30, 2026. The large-cap stock has gained 4% so far in calendar year 2026 and delivered a return of 32% over the past one year.

In an exchange filing dated July 15, Vijay Shekhar Sharma-led Paytm said its board will meet on July 20, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, and evaluate a proposal for the issuance of bonus shares, subject to the necessary approvals.

If approved, this would mark the first bonus share issue in Paytm's history as a listed company since its stock market debut in 2021.

As of the end of the June quarter, Paytm had more than 7.5 lakh small retail shareholders—those holding shares worth up to ₹2 lakh - who collectively owned over 8% of the company, making them among the key beneficiaries of the proposed bonus issue.

For the quarter ended March 2026, One97 Communications reported a consolidated net profit of ₹183 crore, marking a turnaround from the loss posted in the corresponding period a year earlier. Revenue from operations rose 18.4% year-on-year to ₹2,264 crore from ₹1,912 crore, driven by steady growth in the company's payments and financial services distribution businesses.

The improvement in profitability was driven by stronger operating leverage and the absence of one-off charges that had weighed on earnings in previous quarters. At the operating level, EBITDA (before ESOP costs) turned positive at ₹132 crore, compared with a loss of ₹88 crore in the year-ago period.

For the full financial year 2025-26, the company posted a net profit of ₹552 crore, compared with a net loss of ₹663 crore in FY25, while total income increased 22% year-on-year to ₹9,291 crore.

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