Paytm Shares Reverse Early Gains, Fall 3% After Strong Q1 Results; Bonus Issue Plan Shelved

Mumbai, July 21: Shares of One97 Communications, the parent company of Paytm, reversed early gains and fell nearly 3% in Tuesday’s intraday trade as investors weighed the fintech company’s strong June-quarter earnings against the board’s decision to put its proposed bonus issue on hold. As of writing the stock was down 2.2% at Rs 1,317.40.  

Paytm Q1 Profit Jumps 79% 

Paytm reported a 79% year-on-year increase in consolidated net profit to ₹220 crore for the first quarter of FY27, compared with ₹123 crore in the corresponding period last year. Profit also rose 19.5% sequentially. Revenue climbed 27.6% year-on-year to ₹2,448 crore from ₹1,918 crore, although other income declined 24.5% to ₹182 crore during the quarter. Total expenses increased 18.2% to ₹2,383 crore from ₹2,016 crore a year earlier.  

The stock fell after the company shelved its bonus plan. Source: NSE 

The quarterly numbers highlighted continued improvement in Paytm’s performance, with analysts pointing to stronger revenue growth. The company reported its highest-ever quarterly EBITDA of ₹203 crore, up 182% year-on-year, alongside the 79% rise in profit after tax. The performance has led some analysts to argue that the fintech has moved beyond its turnaround phase and is now entering a period where incremental revenue could translate more meaningfully into profitability.  

Board Shelves Bonus Issue Proposal 

Despite the strong earnings performance, investor sentiment was affected by Paytm’s decision not to proceed with its proposed bonus issue at this stage. The bonus issue would have been the company’s first, but the board opted instead to focus on compounding business growth and improving profitability as part of its strategy to create long-term shareholder value. The decision came alongside the company’s Q1 results and appeared to weigh on the stock after its initial gains.  

The reversal in Paytm shares came despite the stock’s strong performance over the longer term. The shares had gained around 5% so far in 2026 and 34% over the past year, while the stock had delivered multibagger returns of 197% over two years. However, Paytm continues to trade significantly below its IPO price of ₹2,150, nearly five years after its market debut.  

Analysts Remain Positive On Outlook 

Analysts remained constructive on Paytm’s improving fundamentals, while highlighting the need for the company to sustain its recent momentum. The Q1 results offered evidence that Paytm had moved from a turnaround phase into an operating-leverage phase, with revenue growth increasingly flowing through to the bottom line. 

From a technical perspective, the stock was trading above its key moving averages, indicating a strong bullish trend. 

The stock’s near-term direction is likely to depend on how investors balance the strong Q1 earnings momentum against the decision to shelve the bonus issue. Sustained revenue growth, improving margins and continued profitability will remain key to supporting Paytm’s valuation as the company seeks to establish itself as a profitable digital financial-services platform. 

Source

•  https://www.nseindia.com/get-quote/equity/PAYTM/One-97-Communications-Limited