New Delhi, July 22 -- The stock of Paytm's parent, One 97 Communications Ltd, is down about 4% after reporting strong June-quarter (Q1FY27) results. It could be a case of profit booking after a sharp rally of nearly 18% in July, triggered by rumours of the reintroduction of merchant discount rate (MDR) charges on UPI transactions. So far, the finance ministry has made no official announcement. If implemented, it will be a straight addition to the company's profit.

Turning to the results, Q1FY27 gross merchandise value (GMV) grew 31% year-on-year (y-o-y) to Rs.7.1 trillion, up from 27% growth in Q4FY26.

Excluding the fall in subscription fee from merchants, net payment processing margin stood at 4 bps versus 3 bps a year ago, aided by mi...