Paytm Share Price Crosses ₹1,000 for First Time in 6 Months: What’s Fueling the Surge?

On July 16, shares of One 97 Communications Ltd, the parent company of Paytm, surged nearly 3% in intraday trading, touching a high of ₹1,014. This marked the first time in six months that the stock crossed the ₹1,000 mark, extending a five-day winning streak.

Strong July Momentum: 9% Gains So Far

Paytm’s stock has been rallying steadily in July, posting a 9% gain month-to-date. After a sharp correction in early 2024, the momentum has returned, with the stock closing in the green for the last four consecutive months.

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MSCI Inclusion Speculation Boosts Sentiment

Market optimism has been fueled by hopes of Paytm’s inclusion in the MSCI Standard Index. As per Motilal Oswal, Paytm could be upgraded from the MSCI Smallcap Index in the upcoming August 2025 rebalancing. If the upgrade happens, the stock could attract foreign inflows of up to $212 million.

• MSCI announcement date: August 8
• Effective date: August 26

One of 2025’s Biggest Turnaround Stories

From an all-time low of ₹310 in May 2024, Paytm has staged a dramatic comeback, rallying nearly 230% to reach ₹1,017. Improved financial performance and investor confidence have played a significant role in this turnaround.

Mutual Funds Increase Stake in Q1FY26

Mutual funds have shown growing confidence in Paytm. As per Q1FY26 shareholding data, domestic mutual funds raised their stake to 13.86%, up from 13.11% in the previous quarter.

Top Domestic Investors:

• Mirae Asset Mutual Fund
• Motilal Oswal Mutual Fund
• Nippon Mutual Fund
• Bandhan Mutual Fund

Meanwhile, FIIs slightly trimmed their holdings from 55.4% to 54.9%, and retail investor ownership dropped to 29.3%.

Q1FY26 Results Preview: First PAT Profit Expected

Paytm is set to announce its June quarter results on July 22, and analysts are optimistic. Reports from JM Financial suggest that the company could post its first-ever profit after tax (PAT) this quarter.

Key Q1 Estimates:

• Payment Services Revenue (ex-UPI): +6% QoQ, +21% YoY
• GMV Growth: +27% YoY
• Merchant Subscribers: Expected at 13.3 million (+7% QoQ)
• Loan Disbursements: +8% QoQ, led by merchant lending
• Adjusted EBITDA: ₹211 million
• PAT: ₹189 million

Despite wage increases, improved operating leverage, lower DLG, and treasury income are expected to support the company’s bottom line.