One97 Communications to invest up to ₹500 crore each in two subsidiaries

Mergers & acquisitions
digital payments

Blacklitt Research26 October 20263 min read

One97 Communications (NSE: PAYTM) has approved additional investment of up to ₹500 crore in its wholly owned subsidiary Paytm Cloud Technologies Limited over the next twelve months, it said in a filing on 26 Oct 2026. The same filing reports consolidated profit of ₹225 crore for the quarter ended 30 Sep 2026.

Key highlights

Investment in Paytm Cloud Technologies: up to ₹500 crore over twelve months
Paytm Cloud's investment in Paytm Singapore: up to ₹500 crore over twelve months
Consolidated profit, quarter ended 30 Sep 2026: ₹225 crore
Proposed MDR cap: 0.4% on select payments above ₹2,000
Revised DLG limits: up to ₹150 crore each for two lenders

The investments in numbers

Item	Detail
Investing company	One97 Communications Limited
First investment	Up to ₹500 crore in Paytm Cloud Technologies Limited, a wholly owned subsidiary
Second investment	Up to ₹500 crore by Paytm Cloud Technologies in Paytm Singapore Pte. Ltd
Period and tranches	Next twelve months, in one or more tranches
Form of consideration	Cash, in equity instruments at fair market value
Related party status	Both recipients are related parties, and the filing says the investments are on an arm's length basis
Stated purpose	Working capital, investments and business expansion

Two subsidiaries receive funds over twelve months

The board approved additional investment of up to ₹500 crore in Paytm Cloud Technologies Limited, to be made in one or more tranches. The subsidiary's board approved a further investment of up to ₹500 crore in Paytm Singapore Pte. Ltd.

The filing says the funds support future working capital, investments and business expansion. Paytm Cloud Technologies reported turnover of ₹84.73 crore for FY 2025-26, and Paytm Singapore reported nil turnover for the same year.

Results, MDR and lender guarantees

Consolidated total income was ₹2,830 crore for the quarter ended 30 Sep 2026, against ₹2,283 crore a year earlier, and consolidated profit was ₹225 crore against ₹21 crore. The standalone statement shows a loss of ₹264 crore for the quarter ended 30 Sep 2025, and the notes record impairment losses of ₹205 crore on an investment and ₹190 crore on a loan to a joint venture for that quarter.

An NPCI update, cited in the filing, says MDR will be implemented immediately after Diwali, on a date to be notified separately. It expects an indicative uplift of about 2.5 bps in its Payments Processing Margin, on its current GMV mix, against a current margin it describes as comfortably above 4 bps. A Default Loss Guarantee (DLG) is a guarantee against losses on loans that the company helps lending partners distribute, and the filing revises the limits to up to ₹150 crore each for Piramal Finance Limited and Kisetsu Saison Finance (India) Private Limited, and sets new limits of up to ₹100 crore each for Vivriti Capital Ltd and UGRO Capital Limited.

A GST demand and the use of IPO proceeds

A demand order dated 12 Oct 2026 reduced the GST liability of First Games Technology Private Limited, a joint venture, to ₹704 crore for April 2018 to March 2023, from the ₹5,712 crore proposed in the show cause notice, with an equal penalty and interest. The company says its exposure is limited to an investment whose carrying value is already nil, and that there is no financial impact on its results.

Of net IPO proceeds of ₹8,119 crore, ₹6,633 crore was utilised up to 30 Sep 2026 and ₹1,486 crore was un-utilised.

What the filing means for One97 Communications' shareholders

The board has approved up to ₹500 crore each for two subsidiaries over twelve months. It does not say how much of these investments has been drawn so far, how much DLG exposure is outstanding, or what rupee effect the MDR change will have.

The next dated step is the MDR implementation date, which the filing says will be notified separately.

Reference: Original filing (PDF)

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