One 97 Communications Ltd (Paytm) witnessed continued institutional participation in the December quarter (Q3 FY26), reflecting sustained confidence in the company’s long-term growth trajectory and improving fundamentals. Foreign Portfolio Investors (FPIs) emerged as key incremental buyers during the quarter, with Category I FPIs increasing their stake to 25.33 per cent in Q3 from 23.01 per cent in Q2 FY26, driven by Paytm’s inclusion in the MSCI Global Standard Index in November 2025.
Foreign Direct Investment (FDI) shareholding declined to 25.18 per cent in Q3 FY26 from 27.44 per cent in Q2 FY26 on account of around 2 per cent stake sale by Elevation Capital through a block deal in November 2025. Domestic investors, however, continued their bullish stance on Paytm, steadily increasing their holdings during the quarter.
Domestic institutional ownership rose to 20.32 per cent in Q3 from 19.95 per cent in the previous quarter</span>, driven by strong buying from domestic insurance companies. Indian insurance companies significantly increased their stake to 4.77 per cent from 2.71 per cent, reflecting strong confidence in Paytm’s consecutive quarter-on-quarter profitability and robust future earnings visibility.
Tata AIA Life Insurance and SBI Life Insurance led the charge, significantly expanding their stakes during the quarter. This growing investor confidence is underpinned by Paytm’s strong operational performance. In Q2 FY26, the company reported a 24 per cent year-on-year increase in operating revenue to ₹2,061 crore, driven by rising subscription-paying merchants, higher payments GMV, and robust growth in financial services distribution.
The company also reported a Profit After Tax (PAT) of ₹211 crore (before a one-time charge of ₹190 crore for full impairment of loan to its JV, First Games Technology Private Ltd), marking a sharp improvement from the previous quarter. Including this one-time charge, PAT stood at ₹21 crore.
As artificial intelligence increasingly reshapes the financial services landscape, Paytm is steadily integrating AI across its platform to enhance merchant experiences, strengthen risk management, and improve operational efficiency. These initiatives are expected to further support scalability, profitability, and long-term earnings visibility, reinforcing institutional confidence in the company’s trajectory.
The steady rise in institutional ownership highlights a growing conviction in Paytm’s transition toward sustainable profitability, supported by improving fundamentals and strategic execution.