One 97 Communications Limited , the parent company of Paytm, has completed the allotment of 1,88,879 equity shares to eligible employees following the exercise of vested stock options under its One 97 Employees Stock Option Scheme 2019 (ESOP 2019). The Nomination and Remuneration Committee approved this allotment on January 03, 2026, at 5:25 A.M. (IST) through circulation.

Share Allotment Details

The key parameters of the share allotment are presented below:

Impact on Share Capital

Following this allotment, the company's capital structure has been updated:

ESOP Scheme Compliance

The ESOP 2019 scheme operates in full compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The scheme was initially filed with stock exchanges on December 6, 2021, and March 8, 2022, with filing numbers 29276 & 30286 for NSE and 143088 & 148040 for BSE.

The newly allotted equity shares rank pari-passu with existing equity shares of the company and carry the ISIN number INE982J01020. These shares are issued in demat form and are not subject to any lock-in restrictions.

Corporate Governance and Employee Benefits

This share allotment represents the company's continued commitment to employee retention and aligning employee interests with shareholder value creation. The ESOP 2019 scheme includes comprehensive provisions for various employment scenarios including death, permanent incapacity, resignation, termination, retirement, and abandonment.

The scheme also provides for adjustments during corporate actions such as rights issues, bonus issues, stock splits, or mergers, ensuring fair treatment of option holders across different market conditions.

One 97 Communications has duly informed both NSE and BSE about this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, maintaining transparency with all stakeholders.

One 97 Communications Limited (Paytm) has reported a significant turnaround in its financial performance for the first quarter, marking a milestone in the company's journey towards profitability.

Key Financial Highlights

• Revenue Growth: Paytm's operating revenue grew by 28% year-over-year to ₹1,918.00 crore, driven by an increase in merchant subscriptions, higher Gross Merchandise Value (GMV), and growth in financial services distribution.

• Profitability Achievement: The company reported a Profit After Tax (PAT) of ₹123.00 crore, a substantial improvement from the ₹840.00 crore loss in the same quarter last year.

• EBITDA Performance: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) turned positive at ₹72.00 crore, with a margin of 4%.

• Contribution Profit: Paytm's contribution profit rose by 52% year-over-year to ₹1,151.00 crore, with the contribution margin expanding to 60%, up 10 percentage points from the previous year.

Operational Metrics

• Merchant Base Expansion: Paytm's subscription merchants, including those using Paytm devices, reached an all-time high of 1.30 crore, reflecting a growth of 21 lakh year-over-year.

• GMV Growth: The company's Gross Merchandise Value (GMV) increased by 27% year-over-year to ₹5.39 lakh crore.

• User Engagement: Monthly Transacting Users (MTU) averaged 7.4 crore for the quarter.

Segment Performance

Payment Services

Revenue from payment services, including other operating revenue, grew by 23% year-over-year to ₹1,110.00 crore. Net payment revenue saw a 38% year-over-year increase to ₹529.00 crore.

Financial Services Distribution

This segment witnessed a remarkable 100% year-over-year growth, with revenue reaching ₹561.00 crore.

Marketing Services

Revenue from marketing services stood at ₹247.00 crore.

Strategic Developments

Paytm's board meeting also saw several key decisions and appointments:

• Board Changes: Ms. Urvashi Sahai was appointed as an Additional Director in the capacity of Whole-time Director for a five-year term, subject to shareholder approval.

• Executive Movements: Mr. Madhur Deora, currently serving as Executive Director, President & Group CFO, will not seek re-appointment at the upcoming Annual General Meeting (AGM) but will continue in his role as President and Group CFO.

• Independent Director Resignation: Mr. Bimal Julka resigned as an Independent Director to pursue interests in emerging technologies.

• New Project Approval: The board approved an ₹800.00 crore Engineering, Procurement, and Construction (EPC) contract with Manorview Developers Private Limited, a subsidiary of Adani Infrastructure & Developers Private Limited, for developing an IT/ITES complex in Noida.

• Auditor Appointment: M/s Chandrasekaran Associates was appointed as Secretarial Auditors for a five-year term.

Vijay Shekhar Sharma, Chairman, Managing Director, and CEO of Paytm, commented on the results, stating, "Our focus on innovation and AI-driven efficiencies has led to this significant turnaround. We're committed to maintaining this momentum and creating long-term value for our shareholders."

As Paytm continues to solidify its position in India's digital payment and financial services landscape, the company's achievement of profitability marks a crucial milestone in its growth trajectory. The focus now shifts to sustaining this performance and capitalizing on the expanding opportunities in the fintech sector.