One 97 Communications Limited, the parent company of Paytm, announced board approval for additional investments totaling INR 1,000 crore in its wholly owned subsidiaries, Paytm Cloud Technologies Limited (PCTL) and Paytm Singapore Pte. Ltd. The company also disclosed its unaudited consolidated financial results for the quarter and half year ended September 30, 2026.
Significant Investment in Subsidiaries
The Board of Directors of One 97 Communications Limited (the “Company”) has approved significant additional investments aimed at bolstering its subsidiaries. The Company will invest up to INR 500 Crores in Paytm Cloud Technologies Limited (PCTL), a wholly owned subsidiary. Following this, PCTL’s board has also approved an additional investment of up to INR 500 Crores in its wholly owned subsidiary, Paytm Singapore Pte. Ltd. These investments are strategically planned to support the working capital needs, future investments, and business expansion of both PCTL and Paytm Singapore over the next twelve months.
Financial Results for Q2 FY27
In line with regulatory requirements, the Company has also announced its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. These results were considered and approved by the Board, based on the recommendation of the Audit Committee.
Update on Merchant Discount Rate (MDR)
The Company provided an update on the implementation of MDR, as per the National Payments Corporation of India (NPCI) circular. Following the upcoming Diwali period, MDR is expected to be implemented shortly. Based on the proposed cap of 0.4% MDR on select payments for non-industry merchants above ₹2,000, the Company anticipates an indicative uplift of approximately 2.5 basis points in overall Payments Processing Margin (PPM). The full impact is expected to stabilize within 2-3 quarters post-implementation.
Default Loss Guarantee (DLG) Update
Further to its business model of facilitating loan distribution, the Company has approved Default Loss Guarantees (DLG) on loans disbursed by its lending partners. Details of these arrangements are provided in the annexures.
Key Personnel Authorized for Disclosures
For the purpose of determining materiality of events and making disclosures to stock exchanges, the Board has authorized Mr. Madhur Deora, President and Group Chief Financial Officer, and Mr. Sunil Kumar Bansal, Company Secretary & Compliance Officer.
Source: BSE
