New Delhi [India], October 10 : Paytm witnessed a sharp rise in institutional participation in the September quarter, underscoring growing investor confidence in the company's financial and operational performance. According to the Q2FY26 shareholding pattern, domestic institutional investors increased their stake in the company to nearly 20 per cent, up from 16 per cent in the previous quarter, led by higher holdings from mutual funds and insurance companies.
Domestic mutual funds raised their shareholding from 14 per cent to 16 per cent during the quarter, driven by Motilal Oswal Mutual Fund. Insurance companies also increased their holdings from 1 per cent to 3 per cent, with Tata AIA Life Insurance Company among the key contributors. The rise reflects consistent domestic investor confidence in Paytm's fundamentals and long-term growth strategy. Foreign portfolio investors (FPIs) too increased their shareholding from 22 per cent to 24 per cent, with Societe Generale - Odi among the key contributors.
Notably, foreign direct investment declined from 33 per cent in Q1FY26 to 27 per cent in Q2FY26, following the complete exit of Antfin (Netherlands) Holding B.V. The exit marks a major shift in Paytm's ownership structure, with the shareholding base now more diversified and institutionally driven. The transition reflects a broader move from concentrated strategic ownership to a widely held shareholder profile anchored by domestic and global institutions.
The change in ownership structure comes as Paytm continues to demonstrate strong financial performance. In Q1FY26, the company achieved profitability across all key financial metrics, reporting a profit after tax of Rs 123 crore and EBITDA of Rs 72 crore, while operating revenue rose 28 per cent year-on-year to Rs 1,918 crore.
As India enters what many call the intelligence revolution, Paytm is positioning itself at the forefront of AI-driven financial technology with a growing suite of intelligent products that empower merchants and businesses of all sizes. Building on its legacy of pioneering QR code-based mobile payments and introducing the trusted Soundbox that transformed in-store transactions, the company is now taking the next leap with AI innovations such as the Paytm AI Soundbox.
Designed to make artificial intelligence accessible to millions of small and micro businesses, these solutions aim to help enterprises scale faster and operate with greater efficiency. As a homegrown fintech pioneer, Paytm remains focused on developing technology that is inclusive, reliable, and safe, reinforcing trust and driving sustainable growth across India's digital economy.
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