Shares of One97 Communications, the parent company of Paytm, surged 5% on Wednesday as investors welcomed its push into enterprise artificial intelligence, marking a significant expansion beyond its core payments business.
On the National Stock Exchange (NSE), Paytm shares climbed 4.97% to an intraday high of Rs 1,753, compared with their previous close of Rs 1,670. Over the past month, Paytm shares gained 20.21%, outperforming the Nifty 500, which declined 1.15% during the same period.
The stock significantly outperformed the broader market, with the Nifty 50 trading about 0.7% lower during the same period.
The rally followed Bloomberg's report that Paytm plans to sell artificial intelligence agents to enterprise customers, betting on demand for software capable of performing multiple workplace tasks with minimal human supervision.
The new service, called Paytm Intelligence, or Pi, will deploy AI agents across functions such as sales, customer service and operations. It is expected to initially target banks, small lenders, insurers and other financial institutions in India and the United Arab Emirates, according to the Bloomberg report.
The move represents a departure from Paytm’s core consumer and merchant payments operations and associated businesses such as lending and investment-product distribution. It could also open a higher-margin revenue stream as competition limits expansion opportunities in digital payments.x
Paytm’s AI platform is built around a financial-services model that the company has reportedly been developing for about two years. Drawing on transaction and customer-behaviour data, the model can be used to assess fraud, creditworthiness and the credibility of insurance claims.
According to its official website, Pi offers three main products: a sales and marketing agent, a customer-service agent and an operations agent. These tools can automate lead generation, customer onboarding, collections, loan processing, compliance checks, refunds and record reconciliation. Paytm says it already operates more than 100 voice and chat AI agents across its businesses.
Analyst Diksha Gera told Bloomberg that AI adoption could create a sharp performance divide among fintech companies, with leaders using proprietary data and model-feedback loops to strengthen their competitive position. Companies that lag, meanwhile, could face margin pressure as AI-native rivals raise expectations around speed, accuracy and personalisation.
Embedded AI models and automation could reduce the cost of serving customers while creating new businesses such as agentic commerce, a market projected to reach $1.7 trillion by 2030, Gera added further.
Paytm has previously identified AI-driven marketing, commerce and customer engagement as key areas for its next phase of growth. Founder and CEO Vijay Shekhar Sharma has said agentic AI will be a major focus for the company, which is developing models tailored for Indian languages, voice-based services and small businesses.
Paytm reported record profitability in the June quarter, with Q1 FY27 revenue rising 28% year on year and 8% sequentially to Rs 2,448 crore. Quarterly EBITDA reached an all-time high of Rs 203 crore, surging 182% year on year and 54% quarter on quarter, supported by broad-based growth across its payments and financial-services businesses and AI-led operating leverage.
Disclaimer: This article has been written by Somanjali Das, who is not a SEBI-registered Research Analyst or an Investment Adviser. Somanjali Das and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
