Foreign investors have reduced their stake in Paytm to 49.4% in the March quarter (Q4 FY26), down from 51.76% in the December quarter (Q3 FY26), marking a major shift in the company’s ownership structure.
FPI Holdings See Sharp Decline
Foreign portfolio investors (FPIs), particularly Category I investors—including sovereign wealth funds, central banks, and pension funds—cut their holdings to 23.77% from 25.33%. The number of such investors also dropped from 613 to 558 during the quarter.
Category II FPIs, which include mutual funds, banks, and insurance firms, significantly reduced their stake to 0.48% from 1.24%, with 19 investors exiting Paytm’s cap table.
Slight Dip In FDI Amid Broader Market Outflows
Foreign direct investment (FDI) also witnessed a marginal decline of 15 basis points, falling to 25.18% in Q4 FY26.
This drop in foreign ownership comes amid broader selling pressure in Indian equities, with FPIs offloading shares worth ₹1.17 lakh crore during the March quarter.
Domestic Investors Increase Their Hold
In contrast, domestic institutional investors (DIIs) increased their stake in Paytm to 23.08% from 20.32% in the previous quarter.
Mutual funds played a key role in this rise, boosting their holdings to 16.6% from 14.34%. Five new mutual funds joined Paytm’s shareholder base, taking the total count to 51. Among them, Bandhan Bank’s Large and Mid Cap Fund acquired a 1.32% stake.
Insurance companies also increased their exposure, raising their stake to 5.08% from 4.77%.
Paytm Becomes Indian-Owned And Controlled Company
With domestic investors now holding 50.3% of the company’s equity, Paytm has officially transitioned into an Indian Owned and Controlled Company (IOCC), as per its exchange filing.
Profitability Improves Alongside Ownership Shift
The ownership shift comes at a time when Paytm is showing improving financial performance. The company reported a net profit of ₹122.5 crore in Q1 FY26 and ₹225 crore in Q3, with operating revenue of ₹2,194 crore.