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Paytm Share News: Shares of Indian fintech One97 Communications, the parent company of Paytm, fell nearly 2 per cent in early trade on Tuesday, August 5, after a large block deal involving 1.86 crore shares or around 2.9 per cent of the company’s total equity changed hands on the exchanges.

Market participants see the sell-off to Chinese firm Antfin (Netherlands) Holding B.V., which was expected to offload its entire 5.84 per cent stake in the company.

The deal, reportedly structured as a clean-out trade, was set at a floor price of Rs 1,020 per share a discount of nearly 5.4 per cent to Paytm’s previous close of Rs 1,078.20 on the NSE.

As per early data, Rs 1,350.26 crore worth of 1.31 crore shares were traded on the National Stock Exchange (NSE). In total, shares worth Rs 5,700 crore exchanged hands across NSE and BSE.

The counter witnessed a trading volume spike over 3.5 times the daily average, focusing on heightened institutional participation and potential fund rotation.

Antfin, part of Alibaba Group, has been steadily paring its stake in Paytm. The Chinese investor had earlier sold a 10.3 per cent stake in August 2023 to founder Vijay Shekhar Sharma, significantly reducing its holding.

This sale follows a string of notable exits from Paytm's cap table over the past two years, including those by SoftBank Group and Warren Buffett’s Berkshire Hathaway.

Despite the stock dip, Paytm has shown strong financial recovery in its latest earnings report.

 Net profit stood at Rs 123 crore in Q1 FY26 vs a loss of Rs 839 crore a year ago.

 Revenue from operations surged 27.7 per cent YoY to Rs 1,918 crore.

 Contribution profit rose 52 per cent YoY to Rs 1,151 crore, with a 60 per cent margin.

 EBITDA came in at Rs 71 crore, while margin improved to 3.7 per cent.

A rise in subscription merchant base

Higher GMV (Gross Merchandise Value)

Expansion in financial services distribution

The company credited its AI-led cost optimisation, disciplined expense control, and higher other income for the turnaround in performance.

While Paytm’s fundamentals are improving, the recent block deal by Antfin could raise short-term supply-side pressures on the stock. Legacy investors are exiting may also signal a transition to a cleaner, more retail and institutional-heavy ownership structure.

Analysts tracking the stock suggest keeping a close watch on the following:

Sustainability of profitability in coming quarters

Further stake sales or dilution events

Regulatory clarity around fintech lending

Growth in high-margin financial services segment

Antfin looks to fully exit Paytm with a Rs 3,800-crore stake sale

Rs 5,700 crore worth of shares changed hands on Tuesday

Strong Q1 earnings show Paytm turning profitable

Stock may face near-term volatility, but long-term outlook hinges on financial performance and ecosystem expansion

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