Shares of One97 Communications Ltd., the listed parent company operating the Paytm brand, delivered exceptional returns with a 70% gain in FY27, pushing the stock to a more than four-year high. According to CNBC TV18, the stock jumped as much as 5.8% to hit a fresh 52-week high of ₹1,718 on Tuesday, August 25. The stock has rallied 34% over the past month and 33% so far in 2026, with the latest surge extending a sharp rally that has seen the stock climb more than 80% from its 52-week low of ₹947.10 touched on March 30. The rally comes after a series of positive developments for the fintech major, with the stock now trading at its highest level in a year.
In July, Paytm reported exceptional financial results that have driven the latest rally. As reported by CNBC TV18, the company delivered a 79% year-on-year jump in consolidated net profit to ₹220 crore for Q1 FY27, while revenue from operations rose 27.6%. The company has also indicated that it expects FY27 revenue growth to exceed the 22% growth recorded in the previous financial year, signaling continued momentum in the fintech sector. The results have strengthened the case that Paytm is moving beyond its earlier focus on cutting costs, with revenue growth now becoming a bigger part of the earnings story.
A potential change in the economics of UPI payments has emerged as a new earnings opportunity for One97 Communications. According to CNBC TV18, the government's consideration of a legal framework that could bring back the Merchant Discount Rate (MDR) on a limited category of UPI transactions could open up a significant new revenue stream for digital payment platforms. Under a proposal reportedly under consideration, large merchants could be charged an MDR of 0.3% to 0.5% on UPI transactions above ₹2,000, while UPI would remain free for consumers and most merchants. Such transactions account for only around 4% of UPI transaction volumes but nearly 67% of transaction value, with analysts estimating that such a change could create an annual revenue pool of ₹5,000 crore to ₹10,000 crore for the payments industry. For Paytm, which has a large merchant payments business, the return of MDR on even a limited section of UPI payments could open up an additional source of revenue, though the framework remains under consideration with no final decision announced.
A significant institutional investment has further validated Paytm's market position and growth prospects. As reported by CNBC TV18, a group of foreign and domestic institutional investors acquired about 1.92 crore shares, representing a 3% stake in One97 Communications, for ₹2,949 crore through open-market transactions. Foreign investors participating in the transaction included Goldman Sachs, BNP Paribas, Societe Generale, Ghisallo Capital Management, Oxbow Capital Management, North Rock Capital Management, Viridian Asset Management, Vittoria Fund-OC, and Integrated Core Strategies (Asia). Domestic buyers included SBI Mutual Fund, Aditya Birla Sun Life Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, HSBC Mutual Fund, Sundaram Mutual Fund, and Tata Mutual Fund. ICICI Prudential Life Insurance and Tata AIA Life Insurance were among the insurers that bought shares, with the breadth of institutional participation drawing attention as the transaction brought in a mix of foreign funds, domestic mutual funds and insurers.
The board of One97 Communications Ltd has proposed revising the salary of founder Vijay Shekhar Sharma after an independent benchmarking exercise found his existing compensation to be 'materially below' comparable roles. According to CNBC TV18, Sharma's base remuneration has remained unchanged since August 2022, when he was reappointed as Managing Director and CEO, with Sharma having voluntarily asked for his remuneration to remain unchanged. Sharma received total remuneration of ₹4.33 crore in FY26, including perquisites, compared with ₹4.5 crore in FY25. His proposed remuneration remains modest compared with some of its listed fintech peers, reflecting the company's focus on capital discipline and profitability. Sharma also voluntarily surrendered 2.10 crore employee stock options in 2025 and currently holds no ESOPs in the company, with the remuneration proposal being separate from factors directly affecting Paytm's operating performance but coming as the company's shares trade at their highest level in a year.
