Paytm block deal likely as SAIF and Elevation plan to offload a 2% stake worth ₹1,639.7 crore

18 Nov 2025 , 10:07 AM

A combined 2 percent stake in One 97 Communications Ltd, the parent company of Paytm, is expected to be sold through a block deal by SAIF III Mauritius, SAIF Partners and Elevation Capital.

The sellers are looking to raise up to ₹1,639.7 crore from this share sale. The floor price for the block deal has been set at ₹1,281 per share, which reflects a 3.9 percent discount to the most recent closing price. As part of the terms, the sellers will face a 60-day lock-up, restricting them from selling any additional shares during this period.

Paytm posted a net profit of ₹211 crore in Q2 FY26, before factoring in a one-time charge of ₹190 crore for the complete impairment of its loan to First Games Technology Private Ltd. After the charge, the reported profit after tax was ₹21 crore.

The company’s operating revenue rose 24 percent year-on-year to ₹2,061 crore, supported by higher subscription-paying merchants, strong growth in payments GMV and continued expansion in financial services distribution.

EBITDA climbed to ₹142 crore with a 7 percent margin, benefiting from strong revenue momentum and operating leverage. Contribution profit increased 35 percent year-on-year to ₹1,207 crore, delivering a 59 percent margin due to better net payment revenue, growth in financial services and lower DLG expenses.

Paytm closed the quarter with a cash balance of ₹13,068 crore, giving the company strong financial flexibility for future expansion. Revenue from payment services, including other operating income, increased 25 percent year-on-year to ₹1,223 crore. Net payment revenue grew 28 percent to ₹594 crore.

Paytm’s GMV expanded 27 percent to ₹5.67 lakh crore, supported by higher processing margins due to increasing credit card transactions on UPI and affordability solutions like EMI.

Merchant subscriptions touched an all-time high of 1.37 crore, rising by 25 lakh over the past year, reaffirming Paytm’s strong position in merchant payments.

Revenue from financial services distribution jumped 63 percent to ₹611 crore, aided by strong traction in merchant loan distribution and improved collection behaviour across lending partners. During the quarter, around 6.5 lakh consumers and merchants used Paytm’s financial services products.

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