The downward spiral in One97 Communications (Paytm) shares continues as the fintech major recorded its seventh consecutive session of losses, shedding investor enthusiasm in less than a week. Led by Vijay Shekhar Sharma, the stock slumped over 2% to touch an intraday low of ₹1,265 on Wednesday. This sharp reversal comes hot on the heels of a strong rally that drove the stock to a 52-week high just seven days prior, as market participants reacted defensively to June quarter earnings and a sudden decision by the board to postpone its much-anticipated bonus share proposal.

Technical Outlook and Key Support Levels After 10% Correction

Analyzing the recent market correction, Sudip Shah, Head of Technical and Derivatives Research at SBI Securities, noted that Paytm shares have dropped nearly 10% from their recent peak of ₹1,407 reached on July 15, primarily driven by aggressive profit-booking following a solid multi-week rally from early June. Technical indicators suggest the stock is currently testing support near its 20-day exponential moving average (EMA), making the ₹1,275 to ₹1,270 zone a crucial threshold to watch. Market experts point out that holding above this immediate support could spark a fresh technical recovery, whereas a decisive breach below it may prolong the ongoing downward correction.

Strong Q1 FY27 Financial Performance Overshadowed by Sentiment

Despite the recent bearish sentiment on the charts, Paytm’s parent company, One97 Communications Limited, posted impressive financial numbers for the first quarter of FY 2026-27. The fintech titan reported a massive 79% surge in net profit reaching ₹220 crore, alongside its highest-ever quarterly EBITDA of ₹203 crore. Operating revenue grew by 28% year-on-year to ₹2,448 crore with an improved EBITDA margin of 8%, while total cash reserves expanded to a robust ₹13,529 crore as of June 2026, reinforcing the firm’s underlying operational and financial strength.

Why Did Paytm Board Defer the Bonus Share Issue?

The primary catalyst dampening investor excitement was the company board’s unexpected decision to drop its proposal for issuing bonus shares at this juncture. In an official statement accompanying the June quarter financial results, Paytm clarified that the management intends to channel all focus toward accelerating core business growth and maximizing long-term profitability to build sustainable value for shareholders. While the deferral triggered short-term disappointment and triggered profit-booking, the company’s solid balance sheet leaves it well-positioned to pursue future expansion.