Paytm board to weigh first bonus issue as stock hits ₹1,400
One 97 Communications will review a bonus share proposal alongside its June quarter earnings, capping a dramatic financial recovery that has driven its stock to multi-month highs.
One 97 Communications will convene its board on July 20 to consider issuing bonus shares for the first time in its history, alongside the approval of its first-quarter earnings for the period ended June 30. The move marks a stark shift in fortunes for the Paytm parent, which has never undertaken a bonus issue or stock split since its market debut in November 2021.
The proposal arrives as the company's shares surge, having crossed the ₹1,400 threshold earlier this week for the first time since December 2021. The stock has posted three consecutive months of gains, accumulating a 19% rise, with an additional 19% advance in July alone pushing its year-to-date return into positive territory at roughly 5%.
For market participants, the potential bonus issue serves as a signal of management confidence following a profound operational pivot. The company spent the past two years battling severe regulatory headwinds, most notably the Reserve Bank of India's 2024 restrictions on Paytm Payments Bank. In response, the fintech firm deliberately shifted its focus toward its core payments and financial services distribution businesses.
This redirection involved onboarding higher-quality merchants and expanding fee-based, scalable revenue streams. The results are now visible in the bottom line, with Paytm posting its first full-year net profit since listing. For the fiscal year ended March 2026, the company recorded a net profit of ₹552 crore, a reversal from the ₹663 crore loss reported in FY25, while revenue climbed 22.3% to ₹8,437 crore.
Momentum carried into the March quarter, with net profit reaching ₹183 crore compared to a year-earlier loss of ₹545 crore. Revenue grew 18.4% year-on-year to ₹2,264 crore, up from ₹1,912 crore a year earlier and representing 3.2% sequential growth. Looking ahead, management expects FY27 growth to outpace the prior year as it captures additional payments market share, while margins should improve through tighter control of indirect costs like marketing and software expenses.
