Paytm's first bonus issue follows a full-year profit of Rs 552 crore and a 22% revenue gain. The board meets July 20 to set the ratio.
Alpha Score of 62 reflects moderate overall profile with moderate momentum, moderate value, moderate quality, moderate sentiment.
One 97 Communications Ltd, the parent of digital payments firm Paytm, plans its first bonus share issue in 25 years. The board will meet July 20 to set the ratio and record date, the company told exchanges Wednesday.
The bonus issue follows Paytm's first full-year profit. Net income was Rs 552 crore in FY26, swinging from a Rs 663 crore loss a year earlier. EBITDA rose to Rs 502 crore from a loss of Rs 1,506 crore.
A bonus issue allots additional shares to existing holders in proportion to their stake. It signals management confidence in the company's financial position and does not require cash, leaving Paytm's Rs 13,315 crore balance intact.
The move could also widen the shareholder base. Paytm shares have traded above Rs 1,000, reaching a 52-week high in July 2026. A bonus would lower the per-share price, making the stock more accessible to retail investors.
The announcement caps a year of rebuilding. Paytm wound down its payments bank, lost some government incentives, and returned to profitability. Revenue rose 22% to Rs 8,437 crore in FY26.
Merchant payment gross merchandise value grew 27% year-on-year to Rs 6.5 lakh crore in the March quarter. Consumer UPI transactions rose 46%, more than double the industry rate. Payment processing margins crossed 4 basis points in the same quarter, ahead of the company's guidance.
Financial services distribution revenue jumped 52% to Rs 2,593 crore. Indirect expenses fell 16% even as Paytm invested in artificial intelligence for fraud detection and merchant operations.
Goldman Sachs, Bernstein, Jefferies and Emkay rate the stock a Buy with price targets above Rs 1,400. Goldman said the regulatory environment looks stable for Paytm, removing a key overhang.
Management has guided for FY27 revenue growth to exceed 22% and expenses to rise more slowly, supporting further margin expansion.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.