Paytm stock drops over 3 percent on profit booking after recent gains

Following restrictions imposed by the Reserve Bank of India on Paytm Payments Bank, Paytm Payments Services has become one of the largest remaining segments of the fintech firm's business.

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26 Aug, 2025 12:21

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Shares of One 97 Communications, Paytm parent, fell as much as 3.5 percent in early trade on September 2 as investors booked profits after the recent rise that had taken the stock higher by over 15 percent in two sessions.

At 10.37 am, shares of Paytm were trading at Rs 598.65 on the NSE, down from a high of Rs 631.45 touched intraday in the previous session.

Much of the gains are courtesy a  12 percent surge on Friday, after last week's go ahead on downstream investment in Paytm Payments Services. On August 28, Paytm Payments Services received a nod from the Finance Ministry for 'downstream investment' from its parent company, One 97 Communications, as per the company's exchange filing.

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Following the approval, Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications, will move forward by resubmitting its payment aggregator (PA) application. "With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to its existing partners," stated One 97 Communications.

This approval is seen as a positive step towards normalising business operations for Paytm Payments Services, particularly in light of previous regulatory concerns linked to the company's connections with China.

Paytm's payment aggregator license application was rejected by the RBI in November 2022, and the company was instructed to reapply in compliance with Press Note 3, which requires government approval for investments from countries sharing land borders with India. At the time of the rejection, China's Alibaba Group was the largest stakeholder in Paytm.

Following restrictions imposed by the Reserve Bank of India on Paytm Payments Bank, Paytm Payments Services has become one of the largest remaining segments of the fintech firm's business, contributing to a quarter of its consolidated revenue for FY23.

Also Read | Paytm secures nod for downstream investment in Paytm Payments Services

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