Paytm Sees Strong Institutional Buying in Q3 FY26 as FPIs and Insurers Raise Stakes

Institutional Participation Remains Firm in December Quarter​

One 97 Communications Ltd, the parent company of Paytm, continued to see sustained institutional participation during the December quarter of FY26, reflecting ongoing confidence in its long-term growth outlook and improving business fundamentals.

Foreign Portfolio Investors emerged as the key incremental buyers in the quarter. Category I FPIs increased their shareholding to 25.33 per cent in Q3 FY26 from 23.01 per cent in the previous quarter, supported by the company’s inclusion in the MSCI Global Standard Index in November 2025.

FDI Holding Moderates After Block Deal​

Foreign Direct Investment shareholding declined sequentially to 25.18 per cent in Q3 FY26 from 27.44 per cent in Q2 FY26. The reduction followed an around 2 per cent stake sale by Elevation Capital through a block deal executed in November 2025.

Domestic Investors Maintain Bullish Stance​

Domestic investors continued to raise their exposure to Paytm during the quarter. Domestic institutional ownership increased to 20.32 per cent in Q3 FY26 from 19.95 per cent in the previous quarter, led primarily by buying from Indian insurance companies.

Insurance companies significantly raised their combined stake to 4.77 per cent from 2.71 per cent, underlining growing confidence in the company’s back-to-back quarterly profitability and improved earnings visibility. Tata AIA Life Insurance and SBI Life Insurance were among the key contributors to the increase in institutional ownership during the quarter.

Operating Performance Supports Investor Confidence​

The rising institutional interest has been supported by Paytm’s operating performance. In Q2 FY26, the company reported a 24 per cent year-on-year increase in operating revenue to Rs 2,061 crore. Growth was driven by an expanding base of subscription-paying merchants, higher payments GMV, and strong momentum in financial services distribution.

The company reported a Profit After Tax of Rs 211 crore before accounting for a one-time charge of Rs 190 crore related to the full impairment of a loan to its joint venture, First Games Technology Private Limited. After factoring in the one-time charge, PAT stood at Rs 21 crore, marking a sharp improvement on a sequential basis.

AI Integration Gains Momentum Across Platform​

Paytm continues to integrate artificial intelligence across its platform to enhance merchant experience, strengthen risk management frameworks, and improve overall operational efficiency. The company is embedding intelligence into its payment and commerce solutions to support scalable growth and deeper engagement across both small and large businesses.

As India’s digital payments and financial services ecosystem evolves, Paytm’s continued investment in AI reflects its focus on building resilient, future-ready technology platforms while maintaining strong institutional investor support.