One97 Communications Ltd, the parent company of Paytm, has officially become a majority Indian-owned and controlled company, marking a significant shift in the fintech firm’s ownership structure. According to recent regulatory filings, domestic investors now hold 50.3% stake in the company as of the end of March 2026. This is the first time the company’s Indian ownership has crossed the 50% threshold, making it majority domestically controlled.
The development comes after steady accumulation by Indian institutional investors over the past few quarters. Reports show that domestic institutional investors increased their stake to a record 23.1% in the March quarter, up 2.8 percentage points sequentially and 9.1 percentage points from a year earlier. The ownership change is being seen as a strong signal of growing confidence in Paytm’s improving financial performance and long-term growth prospects.
Mutual funds played a major role in this shift. Their holdings rose to 16.6% from 14.3% in the previous quarter, while the number of funds invested in the company increased from 36 to 41. Major domestic names such as Motilal Oswal Mutual Fund, Mirae Asset, and Bandhan Mutual Fund were among those that expanded their exposure to the stock.
“One97 Communications, the parent of Paytm, is now a majority Indian-owned and controlled company, with domestic shareholding rising to 50.3% as of March 2026.”~Paytm
Insurance Firms and Institutions Add to Their Holdings:
Apart from mutual funds, insurance companies also increased their exposure to Paytm. Their combined stake reportedly rose to 5.1% from 4.8% in the previous quarter. Investors such as Tata AIA Life Insurance and SBI Life Insurance were among the firms that added to their positions.
This ownership consolidation by Indian investors comes at a time when foreign holdings in several domestic fintech firms have been gradually reducing. For Paytm, the shift is especially significant because it may improve its positioning in sectors where Indian ownership and control can offer strategic advantages, including partnerships and regulatory confidence.
“Paytm has officially become an Indian owned and controlled company.”~Economic Times
Improving Profitability Boosts Investor Confidence:
The ownership transition has coincided with improving business fundamentals at Paytm. The company recently reported its third consecutive profitable quarter, posting a net profit of ₹225 crore in the December quarter, while revenue rose 20% year-on-year to ₹2,194 crore.
Its EBITDA stood at ₹156 crore, with margins at 7%, reflecting improved operational efficiency. The merchant ecosystem also continued to grow, with subscription merchants crossing 1.44 crore, up 24% over the year.
Brokerages have also turned increasingly positive on the stock. Bank of America upgraded Paytm, citing stronger monetisation and improved profitability in merchant payments and lending. Bernstein also maintained a positive outlook, highlighting the company’s revenue edge in merchant business and a stronger earnings trajectory.
“Domestic investors raise Paytm stake to 50.3% as profitability improves.”~NDTV Profit
Major Milestone for India’s Fintech Giant:
The move marks an important milestone for Paytm as it continues its turnaround journey after a volatile phase following its IPO. Becoming majority Indian-owned not only strengthens domestic investor confidence but also reinforces the company’s position as one of India’s leading fintech platforms.
With profitability improving and Indian institutions increasing their bets, the latest development could further support Paytm’s long-term market sentiment and growth story.
