Fintech major One97 Communications, which operates the Paytm brand, has ruled out plans to apply for a Non-Banking Financial Company (NBFC) licence. According to reports from The Economic Times, during the company's Q4 earnings call on Thursday, Paytm President and Group CFO Madhur Deora stated, "We're not super excited about going for an NBFC licence." The company has instead opted for a 'win-win' partnership model where Paytm handles distribution, technology, and collections, while its blue-chip lending partners manage capital, risk, and cyclicality. As reported by The Economic Times, Deora noted that this preference is driven by the company's strong position in the payments market, stating "We have a very large payments market; that market is growing, and our market share is growing, and that combined with low penetration means that the opportunity in the short to medium term already is very, very large."
This strategic decision comes after the RBI cancelled the banking licence issued to Paytm Payments Bank for non-compliance with norms. As reported by The Economic Times, the central bank stated that the affairs of the bank were conducted in a manner detrimental to the interest of its depositors, and the bank failed to comply with the conditions stipulated in the payments bank licence. One97 Communications had previously stated in a company filing that it has no exposure to Paytm Payments Bank (PPBL) as it had already impaired its investment in the beleaguered entity as of March 31, 2024.
Paytm reported a consolidated profit of ₹183 crore in the fourth quarter ended March 2026, marking a significant turnaround from a loss of ₹545 crore in the same period a year ago. According to The Economic Times, the consolidated revenue from operations grew by 18.4% to ₹2,264 crore during the reporting quarter from ₹1,912 crore in the March 2025 quarter. During the financial year ended March 2026, Paytm posted a consolidated profit of ₹552 crore compared to a loss of ₹663 crore in FY25, with annual revenue from operations growing by 22.2% to ₹8,437 crore in FY26 from ₹6,900 crore in FY25.
Deora noted that Paytm's preference for the partnership model is driven by the company's strong position in the payments market. As reported by The Economic Times, he stated, "We have a very large payments market; that market is growing, and our market share is growing, and that combined with low penetration means that the opportunity in the short to medium term already is very, very large." The company's strategic focus on payments market expansion aligns with its decision to avoid direct lending operations through an NBFC licence, positioning itself as a technology and distribution platform rather than a direct lender.
