Paytm Institutional Shareholding Grows As FPIs, Domestic Investors Hike Stake In Q3 FY26

One 97 Communications Ltd. or Paytm witnessed continued institutional participation in the December quarter, reflecting sustained confidence in the company’s long-term growth trajectory and improving fundamentals.

Foreign Portfolio Investors emerged as key incremental buyers during the quarter, with Category I FPIs increasing their stake to 25.33% in Q3 from 23.01per cent 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 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.

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.

In Q2 FY26, the company reported a 24% year-on-year increase in operating revenue to Rs 2,061 crore, driven by rising subscription-paying merchants, higher payments GMV, and robust growth in financial services distribution.

The company also reported a Profit After Tax (PAT) of Rs 211 crore (before a one-time charge of Rs 190 crore for full impairment of loan to its JV, First Games Technology Private Limited), marking a sharp improvement from the previous quarter. Including this one-time charge, PAT stood at Rs 21 crore.

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

By embedding intelligence into everyday payment and commerce solutions, the company is aiming to support scalable growth while deepening engagement with small and large businesses alike. Paytm’s continued investment in AI reflects its focus on building future-ready, trusted technology as India’s financial and payments ecosystem evolves.