Paytm Block Deal | SAIF III Mauritius, SAIF Partners, Elevation Capital likely to sell 2% stake

A 2% stake in Paytm parent company — One 97 Communications Ltd — is likely to be sold through a block deal by SAIF III Mauritius, SAIF Partners and Elevation Capital. The sellers aim to raise up to ₹1,639.7 crore from the transaction.

The floor price has been fixed at ₹1,281 per share, a 3.9% discount to the last closing price. The terms also include a 60-day lock-up that bars the sellers from offloading additional shares during the period.

Paytm reported a net profit of ₹211 crore for the quarter ended September 2025 (Q2 FY26), before accounting for a one-time charge of ₹190 crore for full impairment of a loan to its joint venture, First Games Technology Private Ltd. After this charge, the reported profit after tax stood at ₹21 crore.

Also Read: Paytm shares get upgrades, targets revised higher after first profit without one-offs

The company’s operating revenue rose 24% year-on-year to ₹2,061 crore, driven by growth in subscription-paying merchants, higher payments gross merchandise value (GMV), and expansion in financial services distribution.

EBITDA surged to ₹142 crore with a 7% margin, supported by revenue growth and operating leverage. Contribution profit rose 35% year-on-year to ₹1,207 crore, with a margin of 59%, aided by improved net payment revenue, a higher share of financial services revenue, and lower DLG expenses. Paytm’s cash balance stood at ₹13,068 crore, providing strong capital flexibility to scale its business.

Revenue from payment services, including other operating income, grew 25% year-on-year to ₹1,223 crore, with net payment revenue up 28% to ₹594 crore. The company’s GMV rose 27% to ₹5.67 lakh crore, backed by higher payment processing margins from growth in credit card transactions on UPI and affordability offerings such as EMI.

Also Read: Retail shareholders trim Paytm holdings for sixth quarter in a row but MFs continue to buy

Merchant subscriptions reached an all-time high of 1.37 crore, up by 25 lakh year-on-year, reinforcing Paytm’s leadership in merchant payments. Revenue from the distribution of financial services rose 63% to ₹611 crore, driven by continued expansion in merchant loan distribution and improved collection performance for lending partners. About 6.5 lakh consumers and merchants availed Paytm’s financial services during the quarter.

Share

·

Add us on