Paytm (One 97 Communications) IPO Review

About the Company

Walk into almost any shop in India a tea stall, a kirana store, a big retailer and you'll hear the same sound at the counter: a Paytm soundbox announcing a payment. That little speaker, and the QR code next to it, is how Paytm became part of daily Indian commerce.

Run by One 97 Communications and founded in 2000 by Vijay Shekhar Sharma, Paytm is one of India's biggest fintech platforms. It started as a mobile recharge app, became a payments giant through QR codes, wallets and soundboxes, and now has a registered base of 4.2 crore merchants and 1.12 crore payment devices.

Beyond payments, it distributes financial services lending to merchants and consumers, insurance, mutual funds and equity broking through Paytm Money. It makes money on payment processing, device subscriptions, and commissions from the loans and products it distributes. After a rocky few years, it has reshaped itself around payments and lending. Track its live price and listing data on the IPO GMP Live homepage.

Financial Snapshot

This is one of the most dramatic IPO stories India has seen. Paytm listed at ₹1,950 in 2021 already below its ₹2,150 issue price and then collapsed, falling around 75% to near ₹440. Then in January 2024 the RBI shut down Paytm Payments Bank, and the stock crashed again toward ₹310. It became the poster child for overpriced new-age IPOs.

The recovery since has been just as dramatic. The company slashed costs, sold its movie ticketing business to Zomato, and focused on payments and lending. Revenue, which had dipped to ₹6,141 crore in FY25 after the regulatory hit, rebounded to ₹8,437 crore in FY26 and crucially, Paytm posted its first full year of profit, ₹552 crore, after years of heavy losses.

Two cautions, though. That profit leans on around ₹668 crore of other income and one-off gains, so the core business is only just breaking even. And even after tripling from its lows, the stock near ₹1,100 is still about 48% below its ₹2,150 IPO price, four-and-a-half years on.

So it's a genuine turnaround but a fragile one, and IPO investors are still underwater.

Strengths

• It finally turned profitable. FY26 brought Paytm's first full year of profit at ₹552 crore, with EBITDA improving by around ₹2,008 crore year on year and revenue rebounding to ₹8,437 crore. After years of heavy losses, that's a real shift.
• The merchant ecosystem is dominant. With 4.2 crore registered merchants and 1.12 crore payment devices the soundboxes and QR codes everywhere Paytm has a merchant payments network that rivals struggle to match.
• Lending distribution is the growth engine. Paytm distributes merchant and consumer loans, insurance, mutual funds and broking, an asset-light model that earns commissions without taking the credit risk itself. That's where higher-margin growth can come from.
• It has recovered and is debt-free. The stock has tripled from its lows, the company is debt-free with strong cash, and it now runs a leaner business focused on payments and financial services after shedding non-core units.

Risks

• It's still below its IPO price. From a ₹2,150 issue, the stock sits near ₹1,100 about 48% lower four-and a half years on. Those who bought at the IPO remain firmly in the red.
• The profit leans on one-offs. FY26's ₹552 crore profit includes roughly ₹668 crore of other income plus gains from selling the ticketing business. Strip those out and the core business is only around breakeven.
• Regulatory risk defines this stock. The RBI shutting Paytm Payments Bank in 2024 showed how fast regulation can hit the business. That overhang never fully disappears for a fintech of this size.
• It's expensive again, and competition is fierce. At roughly 130 times earnings on thin profit, the valuation prices in a lot, while PhonePe and Google Pay dominate UPI and Paytm's wallet growth has lagged.

Should You Buy, Hold, or Sell?

This is a call on a turnaround that's worked but only partly. At around ₹1,100, the stock has tripled from its lows yet remains well below its ₹2,150 issue price.

Conservative investors — too unpredictable. A business defined by regulatory risk and a stock that's swung this violently isn't where safe money belongs, profit or not.

Moderate investors — hold if you own it; for fresh money, wait for the profit to prove it's operational, not one-off, across a few more quarters.

Aggressive investors — the momentum and turnaround story are real, and lending could drive the next leg. But you're paying around 130 times earnings for thin profits, so it's a high-risk bet on execution and no fresh regulatory shocks.

Honest take: India's most infamous IPO has genuinely turned a corner but it's now priced for that recovery, and the regulatory risk never fully goes away.

IPO Objects of the Issue

The fresh issue raised ₹8,300 crore. The ₹10,000 crore offer for sale half of India's then-largest IPO went to selling shareholders such as Ant Group, SoftBank and Elevation Capital, so the company received nothing from that part.

Contact Details

One 97 Communications Ltd. (Paytm) One Skymark, Tower D, Plot H-10B, Sector 98, Noida, Uttar Pradesh – 201304 🌐 www.paytm.com

IPO Registrar — MUFG Intime India Pvt. Ltd. (formerly Link Intime India Pvt. Ltd.) 📞 +91-22-4918 6270 🌐 www.in.mpms.mufg.com

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This page is not investment advice. GMP is indicative only. Please consult a SEBI-registered financial advisor before investing.