Paytm Board Approves Rs 2,250 Crore Investment in Payments Arm
This investment aims to strengthen PPSL's net worth, fund the acquisition of the offline merchant payment business, support working capital needs, and maintain its leadership in the merchant payments sector.
Noida, November 4, 2025. One 97 Communications Limited (OCL), the parent company of Paytm, announced several important decisions after its Board of Directors meeting. This included a major investment in its payments subsidiary and the approval of its financial results for the second quarter and the first half of the year, which ended on September 30, 2025.
Strategic Capital Infusion in Payments Business
The Board approved an additional investment of up to Rs 2,250 Crores in its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL), using a rights issue of equity shares.
This investment aims to strengthen PPSL's net worth, fund the acquisition of the offline merchant payment business, support working capital needs, and maintain its leadership in the merchant payments sector.
Q2 Financial Performance
For the quarter ending September 30, 2025 (Q2 FY26), the company reported its unaudited consolidated financial results:
- Revenue from operations was Rs 2,061 Crores.
- Profit for the period attributable to the owners of the parent was Rs 21 Crores.
For the entire first half of the year (H1 FY26), the consolidated figures showed revenue from operations of ₹3,979 Crores and a total profit of Rs 144 Crores attributable to the owners of the parent.
Key Regulatory and Board Updates
In a positive regulatory update, the Board noted that PPSL has received preliminary approval from the Reserve Bank of India (RBI) for its Payment Aggregator (PA) application. Additionally, the RBI has lifted restrictions on merchant onboarding. PPSL has submitted its System Audit Report (SAR) and is currently waiting for the final Certificate of Authorisation (COA).
The Board also appointed Ms. Manisha Raj Raisinghani as a Non-Executive Independent Director, effective November 4, 2025, for a five-year term, pending approval from the company's members.
The financial results included an exceptional item related to a Joint Venture (JV). Following the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which bans online gaming, the company recorded an impairment loss of Rs 205 Crores against its investment and a loss of Rs 190 Crores on the loan to its JV, First Games Technology Private Limited, during the quarter and the half-year ending September 30, 2025.
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