The stake of domestic mutual funds (MF) in Paytm stood at 14.34%, via 36 schemes, in Q3 FY26 as against 16.25% stake held by them through 40 schemes in the previous quarter
Meanwhile, the holdings of alternate investment funds (AIFs) and insurance companies in the company increased
While mutual funds and early backers used the rise in share price to book profits, insurers and AIFs bought these shares, which potentially implied that long-term investors were willing to step in even at higher prices
Domestic mutual funds decreased their cumulative stake in fintech major Paytm
in the December quarter of 2025 from the preceding September quarter. According to Paytm’s shareholding pattern data, the stake of domestic mutual funds (MF) in the company stood at 14.34%, via 36 schemes, in Q3 FY26 as against 16.25% stake held by them through 40 schemes in the previous quarter.
While Motilal Oswal Midcap Fund offloaded over 38 Lakh Paytm shares during the quarter, Nippon Life pared close to 30 Lakh shares. Further, Bandhan Large & Midcap Fund’s stake in the company reduced below 1%.
Meanwhile, the holdings of alternate investment funds (AIFs) and insurance companies in the company increased. At the end of December quarter, 61 AIFs held 1.2% stake in the company in Q3 FY26 as against 0.97% stake held by 43 AIFs at the end of Q2 FY26.
Insurance companies bought over 2% stake in Paytm during the quarter under review, taking the total shareholding of 17 such investors to 4.77%. Among these, SBI Life Insurance’s holding in the company went past the 1% mark.
It is pertinent to mention that the quarter saw multiple bulk deals at Paytm. One of the largest such transactions saw early investor Elevation Capital offload Paytm shares worth INR 1,556 Cr on November 18. Elevation Capital, which holds shares of Paytm via its two holding entities, saw its stake in the company decline over 2 percentage points to 13.45%.
A part of the stake sold by Elevation Capital was lapped up by Societe Generale in a bulk deal worth INR 423.45 Cr.
With the bulk deals, foreign direct investment in Paytm declined by over 2 percentage points to 25.18% in the December quarter. Besides, foreign portfolio investors, corporate bodies, and retail investors also diluted their stake in Paytm during the quarter.
Notably, shares of Paytm rallied close to 18% in Q3, touching a 52-week high of INR 1,381.75 on December 2. The rally allowed investors a good exit window.
While mutual funds and early backers used the rise in share price to book profits, insurers and AIFs bought these shares, which potentially implied that long-term investors were willing to step in even at higher prices.
A major trigger for this uptick in investor confidence is Paytm’s recent profitability spree. In Q3 FY26, the company posted a consolidated net profit of INR 225 Cr as against a loss of INR 208 Cr in the year-ago quarter. Operating revenue zoomed 20% YoY and 7% QoQ to INR 2,194 Cr in the quarter under review.
Shares of Paytm ended today’s trading session 0.81% higher at INR 1,206.85 on the BSE.