NEW DELHI, Apr 25: India’s leading payments app, Paytm (One 97 Communications Ltd), has said that the Reserve Bank of India’s action on Paytm Payments Bank Ltd (PPBL) has no financial or business impact on the company, reiterating that it has no material business arrangements or exposure with the banking entity.
In a regulatory filing, the Noida-based fintech major stated that PPBL operates independently, with no board or management involvement from Paytm.
As previously disclosed on March 1, 2024, the company said it has no exposure to PPBL and no material business arrangements with the entity. It further clarified that no services offered by Paytm are in partnership with PPBL.
Paytm added that there is no financial impact on the company, as it had already impaired its investment in PPBL as of March 31, 2024.
The company also reiterated that all its services continue to function normally, including the Paytm app, Paytm UPI, Paytm Gold, Paytm QR, Paytm Soundbox, Paytm card machines, Paytm Payment Gateway, and Paytm Money, among others.
It emphasised that the issue relates solely to PPBL and should not be attributed to Paytm.
Over the past few years, Paytm has focused on strengthening its core business and has reported three consecutive quarters of profitability in FY26, indicating improved operational performance.
The company reported a profit after tax (PAT) of Rs 559 crore. After adjusting for a one-time Rs 190 crore charge related to a loan to its joint venture Paytm First Games, PAT stood at Rs 369 crore.
In the December quarter, Paytm reported a PAT of Rs 225 crore, an improvement of Rs 433 crore year-on-year. EBITDA improved to Rs 156 crore with a margin of 7 per cent, driven by revenue growth and operating leverage.
Contribution profit stood at Rs 1,249 crore, up 30 per cent year-on-year, with a margin of 57 per cent, reflecting a 5 percentage point improvement.
Paytm UPI continued to gain market share for the third consecutive quarter. Its consumer UPI GMV grew 35 per cent over the last nine months, compared to industry growth of 16 per cent, the company said during its Q3 FY26 results.
Analysts have also revised their outlook, noting Paytm’s improving margin profile, driven by a higher share of merchant payments and financial services distribution. (Agencies)
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