Why did One 97 Communications shares skyrocket 22% today? Check the reason

Synopsis:- Shares surged up to 22% after the government announced a ₹2,000 crore UPI incentive scheme in Budget 2026. With UPI volumes crossing 21 billion and value above ₹28 lakh crore in January, improving margins, rising market share, and 1.44 crore merchant devices boosted investor sentiment.

The shares of the digital service provider gained up to 22 percent in today’s trading session from an intraday low after the government announced a Rs 2,000 crore incentive scheme for Unified Payments Interface (UPI) in the Union Budget 2026.

With a market capitalisation of Rs 75,436.74 crore, the shares of One 97 Communications Ltd were trading at Rs 1,179.20 per share, increasing around 3.71 percent as compared to the previous closing price of Rs 1,137.00 apiece.

Incentive Scheme

Shares of One 97 Communications Ltd moved higher after the government announced a  Rs 2,000 crore incentive scheme for UPI and RuPay debit card transactions in the Budget 2026. The allocation is broadly in line with the  Rs 2,196 crore revised estimate for FY25–26, supporting continued digital payments adoption.

However, the proposed amount falls short of industry expectations of around  Rs 4,500 crore. The actual subsidy outgo stood at  Rs 1,923 crore in FY24–25. Despite nearly 70% growth in transaction volumes, the overall subsidy support has remained relatively stable, reflecting measured fiscal backing.

Additionally, Payment companies estimate that the digital payments ecosystem needs annual subsidies of  Rs 10,000–12,000 crore to fund infrastructure upgrades, ensure smooth processing, and support expansion into new segments. UPI usage continues to scale rapidly, with transaction volumes growing about 30% annually. In January alone, volumes crossed 21 billion transactions, with total value exceeding  Rs 28 lakh crore.

Financials

The company delivered a sharp turnaround in Q3FY26, with revenue rising 20% to  Rs 2,194 crore from  Rs 1,828 crore a year earlier. More notably, it moved from a net loss of  Rs 208 crore in Q3FY25 to a profit of  Rs 225 crore, reflecting improved operational efficiency and stronger business momentum.

Over the past one year, operating performance has improved significantly. OPM moved from -12% in Dec 2024 to -5% in Mar 2025, then turned positive at 4% in Jun 2025 and strengthened to 7% in Sep and Dec 2025. Operating profit also shifted from losses to ₹155 crore profit, reflecting sustained margin recovery and better cost control.

The company reported steady progress across key metrics, with UPI consumer market share rising for three consecutive quarters. Consumer UPI GMV grew 35% in nine months, outpacing industry growth of 16%. Merchant device subscriptions reached 1.44 crore, while financial services users rose to 7.1 lakh. It also secured all three key RBI payment licenses, strengthening operations.

One 97 Communications Ltd is a leading Indian fintech company and the parent of Paytm. It offers digital payments, financial services, lending, insurance, and wealth management solutions through its technology platform. With a strong presence in UPI, merchant payments, and consumer finance, it plays a key role in India’s expanding digital economy.

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