The shares of the Midcap company, specializing in providing digital payment and financial services, commerce, and cloud services to consumers and merchants in India, declined upto 10 percent after the Finance Ministry denied plans to reintroduce the Merchant Discount Rate (MDR) on UPI transactions.
With a market capitalization of Rs. 58,272.95 crores on Thursday, the shares of One 97 Communications Ltd declined by upto 10 percent, making a low of Rs. 864.20 per share compared to its previous closing price of Rs. 960.20 per share.
The shares of One97 Communications, the parent company of Paytm, plunged by up to 10 pecrent on June 12, 2025, marking their biggest single-day drop since February 2024. This sharp decline followed a clarification from the Finance Ministry regarding speculation about the possible introduction of a merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions.
Several media reports had suggested that MDR charges might be reintroduced, which initially led to a rally in Paytm shares. However, the Finance Ministry categorically denied these claims, stating that there are no plans to levy MDR on UPI transactions and calling such reports “completely false, baseless, and misleading”.
Merchant Discount Rate (MDR) is a fee paid by merchants to banks or payment service providers every time a customer makes a digital payment, like with a debit/credit card or UPI.
When MDR is applied, the fee is shared among the merchant’s bank (acquirer), the customer’s bank (issuer), and sometimes payment network providers or gateways.
Financials & Others
The company’s total revenue declined by 10.9 percent from Rs. 2,398.8 crore to Rs. 2,135.3 crore in Q4FY24-25. Meanwhile, Net loss declined from Rs. 549.6 crore to Rs. 539.8 crore during the same period.
The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal reliance on debt financing. Additionally, it has demonstrated strong performance with an average 3-year revenue growth of 26.12 percent, reflecting consistent business expansion.
The company reported a net payment margin of Rs. 578 Crores, including UPI incentives, with a GMV of Rs. 5.1 Lakh Crores. Payment processing margin (excluding UPI incentives) remained strong at over 3 bps. The merchant device subscriber base grew to 1.24 Crores, with 8 lakh additions in the quarter, and Financial services revenue also rose 9 percent QoQ to Rs. 545 Crores.
One97 Communications Ltd, founded in 2000, is a leading Indian tech company best known for its Paytm brand. It offers digital payments, financial services, and merchant solutions. Headquartered in Noida, it serves millions of users and became publicly listed in 2021 with India’s largest IPO at the time.
Written by Sridhar J
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