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Domestic investors further strengthened their ownership in One 97 Communications Ltd, the company behind the Paytm brand, during the quarter ended June 30, 2026. According to the company's latest shareholding pattern filed with the Indian stock exchanges, domestic investors increased their stake to approximately 51.6 per cent, up from 50.3 per cent in the previous quarter.
The continued rise in domestic shareholding reinforces Paytm's status as an Indian-Owned and Controlled Company (IOCC), a distinction it first attained in March 2026. The trend also reflects growing confidence among long-term Indian institutional and non-institutional investors.
Domestic institutional ownership climbed to a record 24.9 per cent in Q1 FY27, compared with 23.1 per cent in Q4 FY26. The increase was primarily driven by mutual funds, which raised their collective stake in the company to 17.9 per cent from 16.6 per cent in the preceding quarter. The number of mutual fund schemes holding Paytm shares also increased to 43 in Q1 FY27, up from 41 in the previous quarter.
Funds managed by Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Nippon Mutual Fund, Mirae Asset Fund and Kotak Mutual Fund were among the top domestic mutual funds that raised their shareholding during the quarter.
Domestic insurance companies also expanded their exposure to One 97 Communications Ltd during the quarter, with their combined shareholding increasing to 5.3 per cent from 5.1 per cent in the previous quarter. The rise was led by higher investments from SBI Life Insurance.
The growing domestic investor participation coincides with a marked improvement in Paytm's financial performance. In FY26, the company posted its first-ever full-year profit, reporting a profit after tax of Rs 552 crore. Revenue from operations rose 22 per cent year-on-year to Rs 8,437 crore, while EBITDA stood at Rs 502 crore, reflecting a year-on-year improvement of Rs 2,008 crore and underscoring stronger operating performance.
The company's improving fundamentals have also drawn positive attention from global brokerages. Last month, Goldman Sachs reiterated its positive outlook on Paytm, raising its revenue estimates by 2 per cent and EBITDA projections by up to 6 per cent. The brokerage attributed the revision to the company's continued gains in the payments business and robust growth in its financial services segment. It also noted that Paytm's valuation could see further upside if it continues to sustain revenue growth of more than 20 per cent.
The latest shareholding pattern highlights sustained confidence among long-term domestic institutional investors, particularly mutual funds and insurance companies, as Paytm continues to strengthen its financial performance and deliver profitable growth.
