Paytm Institutional Shareholding Rises Again in Q3 FY26 Amid Improving Fundamentals

In the December quarter (Q3 FY26), One 97 Communications Ltd. (Paytm) saw continuous institutional investment, indicating ongoing confidence in the company's long-term growth trajectory and strengthening fundamentals. Due to Paytm's inclusion in the MSCI Global Standard Index in November 2025, Category I FPIs increased their investment to 25.33% in Q3 from 23.01% in Q2 FY26, making them the main additional buyers during the quarter.

Due to Elevation Capital's approximately 2% stake sale in a block agreement in November 2025, the percentage of shares held by foreign direct investment (FDI) decreased from 27.44% in Q2 FY26 to 25.18% in Q3 FY26. Let us dig in deeper to unfold more developments in Paytm.

Investors Showing Strong Confidence in Paytm

Throughout the quarter, domestic investors gradually increased their holdings of Paytm, maintaining their optimistic attitude. Due to robust purchases by domestic insurance companies, domestic institutional ownership increased from 19.95% in the previous quarter to 20.32% in the third quarter. The stake of Indian insurance companies rose dramatically from 2.71% to 4.77%. Insurance firms expressed great faith in Paytm's steady quarterly profitability and promising outlook for future profits.

Leading the way and greatly increasing their stakes during the quarter were Tata AIA Life Insurance and SBI Life Insurance. Paytm's excellent operational performance serves as the foundation for this rising investor confidence. The company's operating revenue increased by 24% year over year to INR 2,061 crore in the second quarter of FY26. Rising subscription-paying merchants, increased GMV payments, and strong expansion in the provision of financial services are the main drivers of this increase.

Paytm Infusing AI into its Operations

Paytm is gradually incorporating AI throughout its platform to improve merchant experiences, bolster risk management, and boost operational effectiveness as AI continues to transform the financial services industry. The company's goal is to facilitate scalable growth and deeper connection with both small and large enterprises by integrating intelligence into standard payment and commerce solutions. As India's banking and payments ecosystem develops, Paytm's ongoing investment in AI underscores its commitment to creating reliable, future-ready technology.

Additionally, the business reported a Profit After Tax (PAT) of INR 211 crore, which was a significant improvement over the previous quarter (before a one-time charge of INR 190 crore for the entire impairment of the loan to its joint venture, First Games Technology Private Limited). PAT was INR 21 crore with this one-time fee included.