One 97 Communications Limited (Paytm) has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, confirming compliance with regulatory requirements and proper utilization of IPO proceeds. The report, filed on January 29, 2026, under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrates the company's adherence to stated investment objectives.

Monitoring Agency Assessment

Axis Bank Limited, serving as the monitoring agency, reported no deviations from the objects stated in the offer document. The assessment covered various compliance parameters including utilization alignment with offer document disclosures, statutory approvals, and means of finance for disclosed objects.

IPO Proceeds Utilization Status

The company's ₹18,300 crore IPO, conducted from November 8-10, 2021, allocated ₹8,119 crore for specific business objectives. The current utilization status shows strategic deployment across key business areas.

Ecosystem Strengthening Initiatives

The company has fully utilized ₹4,300 crore allocated for growing and strengthening the Paytm ecosystem. This investment was distributed across three key areas:

• Marketing and promotional expenses: ₹761 crore
• Expanding merchant base and partnerships: ₹1,722 crore
• Strengthening technology-powered payments platform: ₹1,817 crore

The complete utilization of funds in this category demonstrates the company's focus on core business expansion and technology enhancement.

Unutilized Funds Management

The remaining ₹2,000 crore, earmarked for new business initiatives, acquisitions and strategic partnerships, remains unutilized and is currently invested in bank deposits and bank balances. These funds are generating a return on investment of 2.27% with multiple maturity dates.

During the quarter ended December 31, 2025, the company received ₹15 crore as interest on fixed deposits, which was transferred from the Axis Bank monitoring agency account to the general purpose bank account.

Regulatory Compliance

The monitoring agency confirmed that all government and statutory approvals related to the stated objects have been obtained. No major deviations were observed compared to earlier monitoring agency reports, and no unfavorable events affecting object viability were identified during the reporting period.

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.