Paytm Q1 profit rises to ₹220 cr; bonus share plan shelved
Revenue up 28% to ₹2,448 cr; board appoints ex-Google exec, extends IPO proceeds deadline to March 2029, invests ₹100 cr in Paytm Money.
— 5 earlier stories on One97 Communications Ltd. →What's new
- Net profit jumped to ₹220 cr from ₹123 cr YoY; revenue rose 28% to ₹2,448 cr.
- Board approved ₹100 cr investment in Paytm Money, proposed revision in IPO proceeds use with deadline extended to March 2029.
- Bonus share issue plan dropped; board says focus on growth and profitability.
Why this matters
The profit growth is strong, but the cancellation of the first-ever bonus could disappoint retail investors expecting a reward. The IPO proceeds extension signals no urgent need for cash, while the Paytm Money investment shows commitment to wealth vertical.
What we're watching
- Whether the revised IPO proceeds plan gets shareholder approval.
- Paytm Money's path to profitability with the fresh infusion.
- Any impact on retail sentiment from the bonus cancellation.
The full read
Paytm's Q1 profit jumped to ₹220 crore from ₹123 crore a year ago, as revenue climbed 28% to ₹2,448 crore. Yet the board chose to shelve a first-ever bonus share issue it had been considering, saying it would rather focus on growth and profitability. That decision, while prudent, may test retail sentiment after the stock has rallied. Separately, the company proposed revising the use of ₹1,686 crore in remaining IPO proceeds and extending the deadline to March 2029 — a sign it sees no rush to deploy the cash. It also committed ₹100 crore to Paytm Money and appointed former Google senior VP Amitabh Kumar Singhal as a non-executive director, adding governance heft. The numbers are strong, but the real news is what the board didn't do.
Questions answered
- Why did Paytm cancel the bonus share issue?
- The board decided against it to focus on growth and profitability; the plan had been under consideration but was dropped.
- What are the revised IPO proceeds plans?
- The company proposes to change the use of the remaining ₹1,686 crore and extend the utilisation deadline to March 2029; details will be put to shareholders.
- How much profit did Paytm report?
- ₹220 crore net profit for Q1 FY27, up from ₹123 crore a year ago; revenue grew 28% to ₹2,448 crore.
- Who is the new board member?
- Amitabh Kumar Singhal, former senior VP at Google Search, appointed as non-executive director.
- What is the investment in Paytm Money?
- ₹100 crore infusion into the wealth management subsidiary.
- Is this profit sustainable?
- Profit growth is strong, but with a trailing P/E of 130x, earnings quality will be tested.
One97 Communications Ltd.
Latest quarter · Jun 2026
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All notes on PAYTM →- 20 Jul 2026 · 10:08 PM IST Paytm Q1 profit rises to ₹220 cr; bonus share plan shelved
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- 2d ago Paytm Q1 profit jumps 79% to ₹220 cr; bonus share plan shelved
- 2d ago Paytm posts ₹220 cr Q1 profit, scraps bonus issue plans
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