Paytm to announce first-ever bonus issue of shares with Q1 FY27 earnings

Fintech platform Paytm’s parent One 97 Communications is all set to announce its first-ever bonus issue of shares, along with Q1 FY27 earnings after its board meeting today.

The record date or bonus issue ratio will be among the key monitorables. This comes after Paytm completed an open-market share buyback worth Rs 850 crore in December 2022.

A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.

Paytm’s 7.5 lakh retail shareholders are actively awaiting the bonus issue announcement, after the stock dropped around 37% from its issue price since its market debut in 2021. Paytm shares had listed at Rs 1,950 apiece in November, 2021, marking a discount of 9% from its issue price of Rs 2,150 apiece.

The stock then crashed around 86% from the issue price to hit a lifetime low of Rs 310 apiece in May 2024, after regulatory challenges spooked investors. The stock has, however, recovered sharply since then.

Paytm shares have fallen over 3% in one week but gained more than 23% in one month and 4% in 2026 so far. In the longer term, the shares of the company have delivered 34% returns in one year and 58% in three years.

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The expected bonus issue comes when domestic investors continue to up their stakes in the fintech platform. According to the latest shareholding pattern for the quarter ended June 30, 2026, domestic investors held around 51.6% in the company, up from 50.3% in the previous quarter. The increase further strengthens Paytm's status as an Indian-Owned and Controlled Company (IOCC), a milestone it first achieved in March 2026.

Domestic institutional ownership also reached a record high of 24.9% during Q1FY27, compared with 23.1% in the previous quarter. Mutual funds increased their combined holding to 17.9% from 16.6%, while the number of mutual funds invested in the company rose to 43 from 41. Funds managed by Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Nippon Mutual Fund, Mirae Asset Fund and Kotak Mutual Fund were among the domestic investors that increased their stakes during the quarter.

Paytm is all set to announce its earnings for the April-June quarter today. This comes after Paytm reported its first full-year profit in FY26 at Rs 552 crore. Revenue from operations rose 22% year-on-year to Rs 8,437 crore, while EBITDA stood at Rs 502 crore, improving by Rs 2,008 crore from a year earlier.

The improving fundamentals have also attracted positive commentary from global brokerages. Last month, Goldman Sachs retained a positive view on the stock and raised its revenue estimates by 2% and EBITDA estimates by up to 6%, citing continued market share gains in the payments business and strong growth in financial services. The brokerage also said Paytm's valuation multiple could see further re-rating if the company continues to deliver revenue growth of more than 20%.

Also read: Bonus issue alert! Paytm to consider first-ever bonus issue along with Q1 results on July 20