One 97 Communications, the parent company of Paytm, has increased its domestic shareholding to 51.6% as of June 30, 2026. This rise, supported by increased stakes from mutual funds and insurers, marks the second straight quarter of majority Indian ownership. The trend follows the company's recent turnaround, which saw it report a full-year profit of ₹552 crore in fiscal year 2026.
One 97 Communications Ltd, the parent firm behind Paytm, has strengthened its position as an Indian-owned and controlled entity. According to the company's latest shareholding data for the quarter ended June 30, 2026, domestic investors increased their cumulative stake to approximately 51.6 percent, rising from 50.3 percent in the preceding quarter.
Institutional Investors Drive Ownership Shift
The growth in domestic holding was primarily led by domestic institutional investors, who saw their total ownership reach 24.9 percent. Mutual fund houses played a significant role in this transition, expanding their collective stake to 17.9 percent from 16.6 percent. This interest was spread across 43 mutual fund schemes, up from 41 in the previous quarter. Prominent fund houses, including Motilal Oswal, Bandhan, Nippon, Mirae Asset, and Kotak, were among the participants that increased their holdings during this period.
In addition to mutual funds, domestic insurance companies also showed increased interest, with their total shareholding moving to 5.3 percent. SBI Life Insurance emerged as a notable name among the insurers that added to their position in the company.
Financial Turnaround and Market Outlook
This trend in ownership comes alongside a stabilization in the company’s financial performance. In the fiscal year 2026, the company posted a profit after tax of ₹552 crore, marking its first full-year profit. Revenue from operations grew by 22 percent year-on-year to reach ₹8,437 crore. Operational profitability also improved significantly, with EBITDA rising to ₹502 crore, a substantial shift from the losses recorded in previous years.
Market observers have noted these changing fundamentals. Brokerage firm Goldman Sachs recently adjusted its estimates, raising its revenue projections by 2 percent and its EBITDA outlook by up to 6 percent. The firm pointed to steady market share gains in the payments business and growth in the financial services segment as key drivers. The brokerage also noted that if the company maintains revenue growth consistently above 20 percent, it could lead to a reassessment of its valuation multiple.
For investors, the key monitorable will be the sustainability of this growth and whether the company can maintain its current profit margins amidst evolving sector regulations. As Paytm navigates a competitive fintech environment, its ability to retain and grow its user base while managing costs remains a central point of interest for institutional shareholders.