One 97 Communications Limited (Paytm) has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance and a return to profitability. The Board of Directors approved these results at their meeting held on January 29, 2026.

Financial Performance Highlights

The company's consolidated financial results show substantial improvement across key metrics:

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹6,173 crores compared to ₹4,989 crores in the corresponding period of the previous year, representing a growth of 23.7%. Net profit for the nine-month period stood at ₹369 crores against a loss of ₹119 crores in the previous year.

Operational Efficiency and Cost Management

The company's total expenses for Q3 FY26 were ₹2,175 crores compared to ₹2,220 crores in Q3 FY24, showing effective cost management despite revenue growth. Key expense components included:

• Payment processing charges: ₹671 crores (Q3 FY26) vs ₹571 crores (Q3 FY24)
• Employee benefits expense: ₹721 crores vs ₹756 crores
• Marketing and promotional expenses: ₹146 crores vs ₹141 crores

Leadership and Corporate Developments

The company announced significant leadership changes, with Vijay Shekhar Sharma, Chairman, Managing Director and CEO, being additionally appointed as Managing Director and CEO of Paytm Payment Services Limited (PPSL) for five years effective January 29, 2026. This appointment aims to reinforce leadership in merchant payments following the transfer of offline merchant payments business to PPSL.

Mrs. Pallavi Shardul Shroff will cease to be an Independent Director on February 8, 2026, upon completion of her second consecutive term.

Business Transfer and Regulatory Compliance

Pursuant to RBI guidelines dated September 15, 2025, the company transferred its offline merchant payment aggregator business to its wholly owned subsidiary PPSL on November 30, 2025, for a consideration of ₹975 crores. This transfer positions PPSL as the operator of the largest business within the Paytm Group.

Legal and Regulatory Updates

Regarding the FEMA Show Cause Notice received in the previous year with aggregate contraventions of approximately ₹611 crores, the RBI has compounded matters worth ₹21 crores and observed that matters worth ₹485 crores are in compliance with applicable laws. The company continues to work on resolving remaining matters.

IPO Proceeds Utilization

Out of the net IPO proceeds of ₹8,119 crores, the company has utilized ₹6,119 crores as of December 31, 2025. The unutilized amount of ₹2,000 crores remains allocated for new business initiatives, acquisitions, and strategic partnerships.

One 97 Communications Limited (Paytm) has announced key decisions from its Nomination and Remuneration Committee (NRC) meeting held on January 29, 2026. The committee approved significant employee stock option activities under the company's ESOP 2019 scheme, including new grants and share allotments to eligible employees.

ESOP Grant and Lapsed Options

The NRC granted 5,15,617 stock options to eligible employees under the One 97 Employees Stock Option Scheme 2019. Simultaneously, the committee noted 2,63,249 lapsed stock options in accordance with the scheme's terms and conditions.

Each stock option is convertible into one fully paid-up equity share having a face value of ₹ 1 each. The exercise price has been set at ₹ 9 per stock option, with the granted options being exercisable anytime during the entire period of continuous active employment from the date of vesting.

Share Allotment and Capital Structure

The committee also approved the allotment of 1,00,281 equity shares with a face value of ₹ 1 each to eligible employees upon exercise of vested options under the ESOP 2019 scheme. This allotment resulted in a significant change to the company's capital structure.

Share Allotment Details

The newly allotted equity shares carry specific characteristics and regulatory compliance features. The shares were issued on January 29, 2026, with distinctive numbers ranging from 65,52,94,882 to 65,53,95,162 (both inclusive).

The allotted equity shares rank pari-passu with existing equity shares of the company and are not subject to any lock-in restrictions. The shares are listed on both the National Stock Exchange of India Limited and BSE Limited.

Meeting and Regulatory Compliance

The NRC meeting commenced at 05:30 p.m. (IST) and concluded at 05:44 p.m. (IST) on January 29, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full regulatory compliance. The company has also hosted this disclosure on its investor relations website at ir.paytm.com, maintaining transparency with stakeholders and regulatory authorities.