Paytm’s shares slipped 5% from day’s high:Bonus share plan postponed; profit increased 79% to ₹220 crore in June quarter

After the results of the first quarter of financial year 2026-27, Paytm’s shares witnessed volatility today, Tuesday, July 21. As soon as the market opened, the stock surged by more than 2.5%, but within a short time, it fell by up to 5% from the day’s high. The performance of this fintech company led by Vijay Shekhar Sharma has been strong. In the first quarter, the company’s net profit increased by 79% on an annual basis to ₹220 crore. However, selling pressure has increased due to news of the bonus share being postponed. Paytm has nearly tripled investors’ money in 2 years The company’s stock has nearly tripled investors’ money in the past 2 years. However, even after nearly 5 years of market debut, this stock is still below its IPO price of ₹2,150. Q1 Results: Revenue in June Quarter was ₹2,448 Crore In the quarter ended June 30, 2026, Paytm’s revenue from operations increased by 28% to ₹2,448 crore, which was ₹1,918 crore in the same period a year ago. Meanwhile, consolidated net profit increased by 79% year-on-year to ₹220 crore. The company achieved this profit from consistent growth in its payment business, merchant subscription, and financial services distribution. In the same quarter of the previous financial year, Paytm had a profit of ₹123 crore. Meanwhile, in the March quarter, there was a profit of ₹183 crore. Approval for ₹100 Crore Investment in Paytm Money Paytm’s board has approved an investment of up to ₹100 crore through a rights issue in its subsidiary company ‘Paytm Money’. This fund will be used for investment in technology, meeting regulatory capital requirements, and expanding the company’s investment and wealth management business. Changed plan for utilization of remaining ₹1,686 crore from IPO The company’s board has also passed a proposal to change the utilization and timeline of the unused ₹1,686 crore remaining from the IPO. The board has decided to seek approval from shareholders to extend the time for using this amount till March 31, 2029. The company says that this flexibility will help it strengthen the payment and financial services ecosystem and capture new growth opportunities. Why was the bonus share plan postponed? The company’s board has deferred the proposal to issue bonus shares. The board stated that this decision was made after evaluating the proposal from a long-term shareholder value perspective. The board believes that the company should currently focus on accelerating its growth and further strengthening profitability, so that better value can be created for shareholders.” Expert View: Company has now entered profitability phase According to Harshal Dasani, Business Head of INVasset PMS, Paytm’s Q1 FY27 results are clear evidence that the company has now moved from the turnaround phase to the profitability phase. With 28% revenue growth, the highest ever quarterly EBITDA of ₹203 crore and a profit of ₹220 crore shows that the company’s cost structure has now become robust. Now increasing revenue is directly converting into profit. He believes that the next two quarters will determine whether the company’s 8% margin has now become a stable base. Knowledge Box: What is ‘Rights Issue’ and Bonus Shares?