Paytm's CFO Signals Lack of Enthusiasm for NBFC Licence Plans

Paytm's CFO Cools on NBFC Licence, Prefers Partnership Model

During a Q4 earnings call on Thursday, Madhur Deora, President and Group CFO of One97 Communications, which operates the Paytm brand, expressed skepticism about obtaining a non-banking financial company (NBFC) licence. Deora emphasized that Paytm's preference lies in a "win-win" partnership model where the company handles distribution, technology, and collections, while its blue-chip lending partners manage capital, risk, and cyclicality.

Paytm has a large payments market, which is growing, with the company's market share also increasing. The low penetration of this market in the short to medium term presents a significant opportunity for growth. This sentiment comes in the wake of the RBI cancelling the banking licence issued to Paytm Payments Bank last month for non-compliance with norms. The central bank stated that the affairs of the bank were conducted in a manner detrimental to the interest of its depositors.

One97 Communications had previously announced in a regulatory filing that the company has no exposure to Paytm Payments Bank (PPBL), as it had already impaired its investment in the beleaguered entity as of March 31, 2024. Paytm reported a consolidated profit of Rs 183 crore for the fourth quarter ended March 2026, marking a turnaround from a loss of Rs 545 crore a year ago.

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Paytm's consolidated revenue from operations grew 18.4 per cent to Rs 2,264 crore during the reporting quarter from Rs 1,912 crore in the March 2025 quarter. The company's annual revenue from operations also saw a significant increase, rising by 22.2 per cent to Rs 8,437 crore in FY26 from Rs 6,900 crore in FY25.