Paytm Dismisses PPBL Action as Minimal, Operations Remain Uninterrupted

Paytm Reiterates Independence from Payments Bank Entity

India's leading payments app, Paytm (One 97 Communications Ltd), has stated that the Reserve Bank of India's action on Paytm Payments Bank Ltd (PPBL) has no financial or business impact on the company. In a regulatory filing, the Noida-based fintech major emphasized that it does not have any material business arrangements or exposure with the banking entity.

PPBL operates independently, with no board or management involvement from Paytm. This was previously disclosed on March 1, 2024, when the company stated that it does not have any exposure to PPBL or any material business arrangements with PPBL. Furthermore, no services provided by the company are in partnership with PPBL.

No Financial Impact on Paytm

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Paytm added that there is no financial impact on the company since it had already impaired its investment in PPBL back in March 31, 2024. Additionally, there is no direct financial impact on the company since it had already impaired its investment in PPBL as of March 31, 2024. The company clarified that none of its services are linked to PPBL and that all its offerings, including those by its subsidiary, continue to function normally.

Operations Remain Uninterrupted

Paytm emphasized that the matter relates solely to PPBL and should not be attributed to the company. The company's services, which have been operating without interruption, will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies such as Paytm QR, Paytm Soundbox, Paytm card machines, and Paytm Payment Gateway, Paytm Money among others.

Profitable Performance

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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. 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.

The company's December quarter saw 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.

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. 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.