Paytm posts ₹220 cr Q1 profit, scraps bonus issue plans
Revenue rises 28% YoY to ₹2,448 crore as the company stays profitable. Board opts for reinvestment over bonus, seeks wider use of ₹1,686 cr IPO proceeds.
— 5 earlier stories on One97 Communications Ltd. →What's new
- Q1 net profit of ₹220 cr vs ₹183 cr in Mar 2026; revenue ₹2,448 cr (+28% YoY)
- Board drops proposed bonus issue, citing focus on compounding growth
- Seeks shareholder nod to redeploy ₹1,686 cr of IPO proceeds flexibly by 2029
- Amitabh Kumar Singhal (ex-Google Search head) appointed non-executive director
Why this matters
Paytm has now delivered two consecutive profitable quarters, confirming the turnaround is real. But shelving the bonus, just days after floating it, signals management believes internal reinvestment offers better returns than immediate shareholder payouts. The IPO proceeds re-purposing adds a long-term horizon to capital use.
What we're watching
- Whether the bonus U-turn pressures the stock near term
- How the company deploys the ₹1,686 cr reallocated IPO funds
- Sustained profitability trajectory in coming quarters
The full read
Paytm's Q1 numbers confirm the profitability story is sticking. Revenue hit ₹2,448 crore, up 28% from a year ago, and net profit came in at ₹220 crore, a second straight profitable quarter after years of losses. The board, however, gave with one hand and took with another. Just days after floating a first-ever bonus share issue, it pulled the plan, saying it would rather reinvest earnings for growth. That U-turn may test the stock's recent momentum, which had been buoyed by the bonus anticipation. Separately, the company is asking shareholders to unlock ₹1,686 crore of unspent IPO proceeds and extend the utilisation deadline to March 2029, hinting at long-term capital needs. The addition of former Google Search chief Amitabh Kumar Singhal to the board adds tech gravitas. The test now is whether sustained earnings growth can outweigh the bonus disappointment.
Questions answered
- How does Q1 profit compare to the previous quarter?
- Net profit rose to ₹220 crore from ₹183 crore in Q4 FY26 (Mar 2026). Revenue also increased from ₹2,264 crore to ₹2,448 crore.
- Why did Paytm drop the bonus share issue?
- The board said it prefers to focus on compounding growth and profitability. A bonus would have increased share count without adding cash; the company likely wants to conserve equity for future needs.
- What is the IPO proceeds re-purposing about?
- Paytm wants to redeploy ₹1,686 crore of unutilised IPO proceeds more flexibly and extend the deadline to March 2029. Shareholder approval is needed.
- Who is Amitabh Kumar Singhal?
- He is the former head of Google Search and was appointed as a non-executive director of One97 Communications.
One97 Communications Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on PAYTM →- 20 Jul 2026 · 10:18 PM IST Paytm posts ₹220 cr Q1 profit, scraps bonus issue plans
- 1d ago Paytm sets 15-20% margin target sooner, AI revenue line coming
- 2d ago Paytm Q1 profit jumps 79% to ₹220 cr; bonus share plan shelved
- 2d ago Paytm Q1 profit jumps 79% to ₹220 cr; EBITDA hits record ₹203 cr
- 2d ago Paytm Q1 profit rises to ₹220 cr; bonus share plan shelved