Shares of India’s leading digital ecosystem for consumers as well as merchants dropped by 4 percent on BSE at Rs. 976.55 on Wednesday, after NPCI’s decision to extend the cap on UPI transaction volumes by two years, pushing the deadline to December 2026.
With a market capitalisation of Rs. 63,260.2 crores, at 01:36 p.m., the shares of One 97 Communications Limited were trading in the red at Rs. 992.5, down by nearly 2.5 percent, as against its previous closing price of Rs. 1,017.45. The stock was one of the top losers on the BSE Midcap index on 1st January.
What’s the News:
The National Payments Corporation of India (NPCI) has reportedly extended the cap on volumes processed by Unified Payments Interface (UPI) applications by two more years, pushing it to December 2026. This extension is expected to benefit platforms like Google Pay and PhonePe.
Originally proposed in November 2020, the guideline mandates that no digital payment platform should process more than 30 percent share of the total UPI transaction volume.
Google Pay and PhonePe currently dominate India’s UPI payment landscape, with other competitors such as Paytm, Navi, Cred, and Amazon Pay also competing in the market.
In November 2024, PhonePe accounted for 47.8 percent of UPI transactions, while Google Pay held a 37 percent share, according to regulatory figures. Combined, the two platforms processed 13.1 billion transactions in that month alone.
The enforcement of this limit, which was initially scheduled for the end of 2024, has now been deferred to December 2026, as stated by NPCI. Additionally, NPCI has relaxed restrictions on user onboarding for WhatsApp Pay’s UPI services.
Financials:
One 97 Communications reported a decline in revenue from operations, experiencing a year-on-year decrease of nearly 34 percent, falling from Rs. 2,519 crores in Q2 FY24 to Rs. 1,660 crores in Q2 FY25.
In contrast, during the same period, the company’s net profit rose from a loss of Rs. 292 crores to a profit of Rs. 930 crores.
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Stock Performance
The stock has delivered positive returns of nearly 53.6 percent in one year, while around 141.2 percent of multibagger returns in the last six months. The shares of One 97 Communications or Paytm have given positive returns of about 11 percent in the last one month.
About the Company:
Incorporated in 2000, One 97 Communications (Paytm) Limited is one of India’s leading payment solutions providers in India with a digital ecosystem offering consumers and merchants a wide range of services including comprehensive payment solutions, payment facilitator services, facilitation of consumer and merchant lending, wealth management, insurance broking services, and more.
Written by Shivani Singh
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