Motilal Oswal AMC raises stake in Paytm parent One 97 Communications to 5.15%. Details here

Motilal Oswal Mutual Fund has increased its stake in One 97 Communications Ltd, the parent company of Paytm, crossing the 5% threshold in shareholding. The acquisition was made through multiple schemes managed by Motilal Oswal Asset Management Company Limited.

The fund house purchased an additional 26.31 lakh shares, representing 0.41% of total equity, through open market transactions on August 11, 2024. Following this acquisition, its total shareholding in One 97 Communications rose to 3.29 crore shares, equivalent to 5.15% of the company’s total equity capital.

Prior to this transaction, Motilal Oswal Mutual Fund held 3.02 crore shares, translating into a 4.75% stake. With this incremental purchase, the mutual fund has now crossed the critical 5% disclosure threshold under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011.

The acquisition was carried out across a wide range of Motilal Oswal Mutual Fund schemes, including Motilal Oswal Nifty Midcap 100 ETF, Motilal Oswal Focused Fund, Motilal Oswal Midcap Fund, Motilal Oswal Flexi Cap Fund, Motilal Oswal ELSS Tax Saver Fund, Motilal Oswal Balanced Advantage Fund, Motilal Oswal Nifty Midcap 150 Index Fund, Motilal Oswal Nifty 500 Index Fund, and more. The purchase comes amid renewed investor interest in fintech and digital companies, even as Paytm continues to navigate a challenging regulatory and competitive landscape.

The company reported a strong turnaround in its performance for the quarter ended June 2025 (Q1FY26), posting a consolidated net profit of ₹122.5 crore. This marked a sharp reversal from the net loss of ₹839 crore recorded in the same period last year.

Its operating revenue rose 28 percent year-on-year to ₹1,917 crore, compared to ₹1,502 crore in Q1FY25. On a sequential basis, growth was relatively muted at 0.3 percent, as revenue in Q4FY25 stood at ₹1,911 crore when the firm had posted a net loss of ₹540 crore.

The company said the revenue expansion was supported by an increase in subscription-based merchants, higher Gross Merchandise Value (GMV), and improved income from financial services distribution.

At the operating level, the firm reported an EBITDA of ₹72 crore, reflecting a 4 percent margin, while profit after tax (PAT) stood at ₹123 crore. The turnaround was driven by AI-led operational efficiencies, a disciplined approach to cost management, and higher other income, according to the company’s exchange filing.

The stock has given multibagger returns in the last 1 year, rising 114 percent. Meanwhile, it has added 12.5 percent in August so far, extending gains for the 6th straight month. It rose 18 percent in July, 3.8 percent in June, 3 percent in May, 10.4 percent in April, and 9.5 percent in March. However, it fell 8 percent in February and 23.8 percent in January.

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