Paytm Q1 earnings: Board shelves bonus issue proposal for now, prioritises long-term growth

One 97 Communications, the parent entity of fintech firm Paytm, in its earnings statement on Monday, July 21 night, said its board has decided not to proceed with the proposed bonus issue at this time.

The company said that, after evaluating the proposal from the perspective of long-term shareholder value and due deliberation, the board was of the view that the company should continue to focus on further compounding growth and profitability to create shareholder value.

“Accordingly, the Board decided not to proceed with the said proposal at this time,” it added.

Other key updates

Paytm said its board has recommended the appointment of Amitabh Kumar Singhal as a Non-Executive, Non-Independent Director, liable to retire by rotation, subject to shareholders' approval at the upcoming Annual General Meeting (AGM).

The company said Singhal has extensive expertise in computer science and previously served as Senior Vice President of Google Search.

The board approved an additional investment of up to ₹100 crore in its wholly owned subsidiary, Paytm Money Limited (PML), through a rights issue, subject to necessary approvals.

The investment will support PML's growth and business requirements, including technology investments, regulatory capital needs, and the expansion of its investment and wealth management businesses.

The board also approved a proposal to seek shareholders' approval for revising the utilisation of the remaining IPO proceeds.

As of July 20, 2026, ₹1,686 crore of the ₹2,000 crore originally earmarked under Object 2 of the IPO—for investments in new business initiatives, acquisitions, and strategic partnerships—remained unutilised.

The company has proposed using the remaining funds interchangeably under Object 1 and Object 2. Object 1 relates to strengthening Paytm's ecosystem by acquiring and retaining consumers and merchants while expanding access to technology-led financial services.

Paytm has also proposed extending the utilisation timeline for these funds until March 31, 2029, saying the move would provide greater flexibility to allocate capital to high-value opportunities while continuing to strengthen its core payments and financial services business. The proposal is subject to shareholders' approval through a special resolution at the upcoming AGM.

Paytm said the Nomination and Remuneration Committee (NRC) of its board, at its meeting held on Monday, July 20, 2026, approved the grant of 15,42,117 stock options to eligible employees under the Paytm ESOP 2019 scheme.

The committee also took note of the lapse of 5,87,147 stock options.