One 97 Communications Limited disclosed that its step-down subsidiary First Games Technology Private Limited (FGTPL) has received board approval for a significant loan waiver from AGTech Media Holdings Limited. The announcement was made on March 27, 2026 at 9:22 p.m. (IST) through a regulatory filing.

Loan Waiver Details

AGTech Media Holdings Limited has agreed to waive the outstanding loan of approximately ₹142 crore including accrued interest owed by FGTPL. This waiver was formalized through an amendment to certain loan agreements between the two entities.

Original Loan Structure

The loan agreements were executed in phases, with AGTech advancing unsecured External Commercial Borrowings to FGTPL through multiple tranches:

• June 4, 2021: Initial loan agreement
• September 15, 2021: Second tranche
• April 13, 2022: Final tranche

The total amount advanced across these agreements was ₹131.94 crore, which grew to approximately ₹142 crore with accrued interest.

Business Context and Financial Impact

FGTPL had discontinued its real money gaming business following regulatory changes in the sector. This business closure necessitated the restructuring of the subsidiary's financial obligations.

One 97 Communications emphasized that this loan waiver will have no adverse financial impact on the parent company. The company had already fully impaired its investment and shareholder loan in FGTPL, effectively writing off the value prior to this announcement.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction qualifies as a related party transaction since AGTech Media Holdings is a shareholder in FGTPL.

The company confirmed that detailed information regarding this loan waiver agreement would be made available on its investor relations website at ir.paytm.com for stakeholder reference.

Jefferies has maintained its Buy rating on Paytm while adjusting the target price to Rs 1350 from the previous Rs 1400, reflecting a measured optimism about the fintech company's growth trajectory despite near-term challenges.

Growth Drivers and Revenue Outlook

The brokerage firm expects Paytm to deliver approximately 20% revenue growth, supported by multiple strategic initiatives. Key growth catalysts include operating leverage improvements, network expansion across various business verticals, and faster loan origination processes that are expected to enhance the company's financial services portfolio.

EBITDA Margin Expansion Strategy

Jefferies anticipates EBITDA margin expansion through several operational improvements. The company is expected to benefit from operating leverage as it scales its existing infrastructure, while network expansion and entry into new segments should provide additional revenue streams without proportional cost increases.

Near-term Challenges

Despite the positive long-term outlook, Paytm faces several near-term headwinds that have impacted investor sentiment. The stock has declined 20-30% year-to-date, reflecting market concerns about the company's immediate performance trajectory.

The brokerage highlighted sensitivity to lower contribution margins, which could potentially impact adjusted EBITDA by approximately 9-6%. This sensitivity underscores the importance of maintaining healthy unit economics across the company's various business verticals.

Investment Rationale

Jefferies' maintained Buy rating suggests confidence that Paytm's growth drivers will outweigh near-term concerns. The target price adjustment to Rs 1350 reflects a balanced view that acknowledges both the company's growth potential and current market challenges, positioning the stock for potential recovery as operational improvements materialize.