One 97 Communications jumps on block deal, AI business expansion reports

One 97 Communications surged 4.14% to Rs 1,739.10 after the counter saw a block deal in early trade.

The stock hit a fresh 52-week high of Rs 1,753 today. According to reports, around 10.6 lakh Paytm shares changed hands in the block deal. Details of the buyers and sellers had not been disclosed by the exchanges so far.

In August, a promoter-linked entity sold shares worth about Rs 2,949 crore, while other early investors have also pared their stakes through block deals.

The rally in Paytm shares was also fuelled by reports that the digital payments company is expanding into a new artificial intelligence (AI) business to boost revenue growth.

Media reports said Paytm is expanding into agentic AI through a new offering called Paytm Intelligence, or Pi. The company plans to sell AI agents to enterprise customers that can handle tasks across sales, customer service and operations. The initial target market includes banks, smaller lenders, insurers and other financial institutions in India and the UAE.

Paytm has reportedly been developing a financial-services AI model for about two years, using financial and customer-behaviour data to build capabilities in areas such as fraud detection, credit assessment and claims analysis.

Separately, some reports said AI agents could soon be allowed to make UPI payments on behalf of users under a proposed framework with safeguards around consent, authentication and transaction limits. This could create a new interface between AI assistants and India's digital payments ecosystem.

There is also a broader positive backdrop around the stock. A foreign broker recently raised its Paytm target price to Rs 2,200 from Rs 1,500, citing potential upside from a possible UPI merchant discount rate and improving business prospects.

The digital payments and financial services company reported a consolidated net profit of Rs 220 crore in Q1 FY27, up 78.86% YoY and 20.22% QoQ. Revenue from operations rose 27.63% YoY and 8.13% QoQ to Rs 2,448 crore in the quarter ended 30 June 2026. EBITDA surged 181.94% YoY and 53.79% QoQ to Rs 203 crore, while EBITDA margin expanded to 8% from 4% in Q1 FY26 and 6% in Q4 FY26.

One 97 Communications operates Paytm, a digital payments and financial services platform offering merchant payments, financial services distribution, lending, insurance and wealth management products.

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