NEW DELHI: India's leading payments app, Paytm (One 97 Communications Ltd) stated on Friday that the Reserve Bank of India’s actions against Paytm Payments Bank Ltd (PPBL) have no financial or business impact on the company.
In a regulatory filing, the fintech firm clarified that it maintains no material business arrangements or exposure to PPBL, emphasizing that the bank operates independently with no board or management involvement from Paytm.
Paytm (One 97 Communications Ltd) further clarified that its operations remain unaffected, as it had already fully impaired its investment in Paytm Payments Bank Ltd (PPBL) as of March 31, 2024.
The company reiterated that none of its services are dependent on PPBL, ensuring that all platforms—including the Paytm app, UPI, Gold, QR, Soundbox, card machines, Payment Gateway, and Paytm Money—continue to function without interruption.
Paytm also emphasised that the matter relates solely to PPBL and should not be attributed to the company.
Over the past couple of years, Paytm has been doubling down on its core revenues, and has delivered three consecutive quarters of profit in FY26, signalling a robust operating model.
To be sure, Paytm reported a profit after tax of Rs 559 crore. Adjusting for a one-time Rs 190 crore charge related to a loan to its joint venture, Paytm First Games, profit after tax still stood at a sizable Rs 369 crore.
In the December quarter, Paytm reported a profit after tax (PAT) of Rs 225 crore, an improvement of Rs 433 crore year-on-year. EBITDA for the quarter improved to Rs 156 crore with an EBITDA margin of 7 per cent, reflecting an improvement of Rs 379 crore year-on-year driven by revenue growth and continued operating leverage.
Contribution profit stood at Rs 1,249 crore, up 30 per cent YoY with a contribution margin of 57 per cent, an improvement of 5 percentage points YoY.
Paytm UPI also continued to gain market share for the third consecutive quarter. Paytm's consumer UPI GMV grew 35 per cent in the last nine months versus industry GMV growth of 16 per cent, the company had said during its Q3 FY26 results.
This has led analysts to recalibrate their outlook, with recent brokerage coverage highlighting Paytm as one of the few fintechs with superior margin profile, driven by its increasing mix of high-margin merchant payment revenues and financial services distribution.
(With inputs from PTI)