One 97 Communications Updates on Group Structure Simplification
Filing Summary
One 97 Communications Limited has announced updates on its group structure simplification following a board meeting on January 29, 2026. The company approved its unaudited financial results for the quarter and nine months ending December 31, 2025, and disclosed the cessation of Independent Director Mrs. Pallavi Shardul Shroff. The offline merchant payments business has been transferred to Paytm Payment Services Limited, a wholly-owned subsidiary. Additionally, the conversion of debentures in Little Internet Private Limited will be completed in FY 2026-27. The company continues to address regulatory matters under the Foreign Exchange Management Act.
One 97 Communications Limited has provided an update on the simplification of its group structure following a board meeting held on January 29, 2026. The board approved the unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. The meeting also addressed the cessation of Mrs. Pallavi Shardul Shroff as an Independent Director, effective February 8, 2026. The company has transferred its offline merchant payments business to Paytm Payment Services Limited (PPSL), a wholly-owned subsidiary, reinforcing its leadership in merchant payments.
The financial results for the quarter ending December 31, 2025, show a total income of INR 2,406 crores, with revenue from operations at INR 2,194 crores. The company reported a profit before tax of INR 230 crores. The nine-month period ending December 31, 2025, recorded a total income of INR 6,849 crores. The company also disclosed an exceptional item related to the impairment loss against a loan to First Games Technology Private Limited, amounting to INR 190 crores.
Operationally, the transfer of the offline merchant payments business to PPSL is a significant move. PPSL now operates the largest business within the Paytm Group, handling payments for both offline and online merchants. Mr. Vijay Shekhar Sharma, Chairman, Managing Director, and CEO of One 97 Communications, has been appointed as the Managing Director and CEO of PPSL for five years, effective January 29, 2026. He will continue to draw remuneration solely from One 97 Communications.
The timeline for the conversion of outstanding optionally convertible debentures and convertible inter-corporate deposits in Little Internet Private Limited is set for completion during the financial year 2026-27. This conversion is part of the company’s ongoing efforts to streamline its operations and enhance financial efficiency.
Entities involved in these developments include One 97 Communications Limited, its subsidiary PPSL, and Little Internet Private Limited. The board of directors, along with the audit committee, plays a crucial role in overseeing these changes and ensuring compliance with regulatory requirements.
In the context of regulatory compliance, One 97 Communications is addressing a Show Cause Notice from the Directorate of Enforcement concerning alleged contraventions of the Foreign Exchange Management Act. The company is taking necessary steps to resolve these issues, with some matters already compounded by the Reserve Bank of India. The company has also recorded provisions for related compounding fees based on independent legal opinions.
One 97 Communications Limited, known for its brand Paytm, focuses on digital payment services, financial services distribution, and marketing services. The company is committed to expanding its ecosystem through strategic initiatives and partnerships, enhancing its technology-driven payment platforms, and maintaining its leadership in the digital payments sector.