Paytm, operated by One 97 Communications, saw its shares fluctuate significantly on Tuesday after the company's board decided to defer a previously announced bonus issue of shares. This decision, made public after the announcement of its June quarter results on Monday, led to a volatile trading session for the fintech giant.
The company's stock initially rose by nearly 2.58% to Rs 1382.90 in early trading but then reversed course, falling 2.91% to Rs 1308.75 by the afternoon. This "flip-flop" activity wiped out a portion of the company's market capitalization, which settled at Rs 84,573 crore.
Why the Deferral?
On July 15, Paytm had informed the market that its board would consider a bonus issue alongside its June quarter earnings. However, when the Q1 results were released on July 20, no such bonus issue was announced. The board stated its intent to instead "focus on further compounding growth and profitability for shareholder value creation."
Stock Performance and Technicals
Despite Tuesday's turbulence, Paytm shares have shown strong performance over recent periods, gaining 30% over the past year and 21% in the last month. The stock had even reached a record high of Rs 1407 on July 15, just before the Q1 results were due.
- Trading Volume: A total of 4.04 lakh shares were traded today, amounting to a turnover of Rs 54.31 crore.
- Volatility: The stock's beta of 1.57 indicates a high level of volatility over the past year.
- RSI: The Relative Strength Index (RSI) for Paytm stands at 70.6, suggesting the stock is currently in overbought territory.
- Moving Averages: Paytm shares are trading higher than their 20, 30, 50, 100, 150, and 200-day moving averages, but below their 5 and 10-day averages.
Q1 Earnings Overview
The company's financial results for the April-June quarter were robust, despite the stock market reaction to the bonus issue deferral. Paytm announced a significant 79% year-on-year increase in net profit, reaching Rs 220 crore.
This strong performance was primarily driven by:
- Sustained momentum in its payments business.
- Growth in merchant subscriptions.
- Expansion of financial services distribution.
For context, the company had reported a consolidated net profit of Rs 123 crore in the corresponding quarter of the previous year. Sequentially, the profit also saw an increase from Rs 183 crore reported in the March 2026 quarter.
Revenue from operations climbed 28% year-on-year to Rs 2,448 crore during the quarter, up from Rs 1,918 crore in the same period last year. Total income for the quarter reached Rs 2,630 crore, reflecting broad-based business growth across its key segments.