Paytm share price jumps 63% in 12 months; firm sees continued growth in institutional shareholding. Check details

The stock has witnessed an impressive rally over the past 12 months. Data show that the shares of the company have advanced 63% over the past 12 months (as of January 13 morning trade).

Increased participation by institutional investors

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% in Q3 from 23.01% 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% in Q3 FY26 from 27.44% in Q2 FY26 on account of around a 2% stake sale by Elevation Capital through a block deal in November 2025.

Domestic investors continued their bullish stance on Paytm, steadily increasing their holdings during the quarter.

Domestic institutional ownership rose to 20.32% in Q3 from 19.95% in the previous quarter, driven by strong buying from domestic insurance companies.

Insurance companies also raise stakes

Indian insurance companies significantly increased their stake to 4.77% from 2.71%, 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.

Paytm Q2 FY26 Earnings

One 97 Communications, India's full-stack merchant payments leader serving MSMEs and enterprises and a leading financial services distribution company, reported a strong improvement in profitability alongside solid revenue growth in the September 2025 quarter (Q2 FY26 earnings).

During the quarter, Paytm's operating revenue rose 24% year-on-year (YoY) to ₹2,061 crore, driven by continued growth in its payments and financial services businesses.

The company reported a profit after tax (PAT) of ₹211 crore, before a one-time charge for full impairment of a ₹190 crore loan to our JV, First Games Technology Pvt Ltd.

Reported PAT stood at ₹21 crore. The result marks a significant improvement from the previous quarter, underscoring Paytm's progress towards sustainable profitability.

EBITDA improved to ₹142 crore, with a 7% margin, on account of revenue growth and operating leverage.

Contribution profit grew 35% year-on-year to ₹1,207 crore, with a healthy 59% margin, driven by higher net payment margins and an increased share of financial services revenue.

Paytm & artificial intelligence

As artificial intelligence continues to reshape the financial services landscape, Paytm is increasingly embedding AI across its platform to enhance merchant experiences, strengthen risk management, and improve operational efficiency.

By integrating intelligence into its core payments and commerce solutions, the company aims to support scalable growth while deepening engagement with both small and large businesses.

Paytm’s sustained investment in AI underscores its focus on building future-ready, trusted technology as India’s financial and digital payments ecosystem continues to evolve.