Paytm shares fall 10%! Here’s why One97 Communications stock is trading in red
Paytm shares fall: The stock price of One97 Communications Ltd, the parent company of payments app Paytm fell almost 10% on Friday, to hit an intraday low of Rs 1,134 on the BSE. With this, the stock has registered a downwarad momentum in four of the last five trading sessions.At 3:17 pm, the stock was trading at 1,135.90, down 124.60 points or 9.88% on the National Stock Exchange. On BSE, the share price was down 125.05 or 9.92%, reaching 1,135.85.
Why Paytm tumbled ?
According to a report by CNBC TV-18, the sharp dip was due to concerns surrounding the Payment Infrastructure Development Fund (PIDF) scheme, which supports the rollout of digital payment infrastructure across the country. While the scheme was extended til December 2025, there has been no communication so far on any further extension beyond that date, the report said. An analyst note cited by CNBC TV-18 stated that incentives linked to the PIDF contribute nearly 20% of Paytm’s operating profit. It further flagged that any potential discontinuation of the scheme could have an impact on companies engaged in digital payments and payment infrastructure services. However, these concerns are mere speculations as of now, as there has been no official clarification from the Reserve Bank of India (RBI).
Paytm clarifies
In a clarification cited by ET, Paytm said that it has recognised incentives under the PIDF scheme in accordance with the RBI’s circular, based on qualifying expenditure incurred towards deploying payment acceptance devices. The incentives, it stated, were tied to the installation of devices such as soundboxes and EDC machines across Tier-3 to Tier-6 centres, along with select locations including the northeastern states and the Union Territories of Jammu, Kashmir and Ladakh. The company added that incentives recognised under the scheme stood at Rs 128 crore for the six months ended September 30, 2025. Paytm added that there has been no announcement by the RBI or other authorities so far regarding an extension or replacement of the PIDF scheme. The company further said that if the current scheme is not extended or replaced, it expects to significantly offset the impact over time through a combination of higher revenues and more targeted sales efforts. Meanwhile, the company’s latest shareholding pattern showed domestic mutual funds reduced their stake in One97 Communications during the October–December quarter. This is the first time mutual funds have trimmed their holding since Paytm’s stock market debut in November 2021, after increasing their exposure consistently over the past three years. As per shareholding data, mutual funds held 14.34% in Paytm at the end of the December quarter, compared with 16.25% at the end of the September quarter.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
