One 97 Communications Limited, the parent entity of Paytm, has announced two significant corporate developments aimed at optimizing its subsidiary structure and bolstering its loan distribution business. The Company’s Board has approved the conversion of an outstanding loan of approximately 197 crore into equity shares of its step-down subsidiary, First Games Technology Private Limited (FGTPL). Additionally, in alignment with its existing loan distribution model, the Company has approved a Default Loss Guarantee (DLG) of up to 90 crore on loans disbursed by its lending partner, Piramal Finance Limited.

The loan conversion involves transforming a 197 crore debt, including unpaid interest, into 19,67,70,855 equity shares of FGTPL at a par value of 10 per share. FGTPL, which previously operated in the online real money gaming sector, discontinued its business on August 25, 2025, following the promulgation of “The Promotion and Regulation of Online Gaming Act, 2025”. This conversion will increase One 97’s aggregate shareholding in FGTPL from 55% to 82.6% but will have no financial impact on the Company as the investment was already fully impaired. Simultaneously, the DLG arrangement with Piramal Finance Limited serves as a financial guarantee in the form of Bank Guarantees or Fixed Deposits to support loan sourcing and collection fees.

One 97 Communications is a leading Indian fintech pioneer that recently achieved “Indian Owned and Controlled Company” (IOCC) status, with domestic investors now holding a majority stake of 50.3% as of March 2026. The Company has successfully pivoted its business model toward payment services and the distribution of financial services, including merchant loans and wealth management products. Recent updates include the integration of all payment businesses under its subsidiary, Paytm Payments Services Limited (PPSL), which secured a permanent online payment aggregator license from the RBI in late 2025. Furthermore, the company continues to expand its merchant subscriber base, which reached 1.44 crore devices by December 2025.

For the third quarter ending December 2025 (Q3 FY26), One 97 Communications reported its third consecutive profitable quarter with a Net Profit of 225 crore, a significant turnaround from a loss of 208 crore in the corresponding quarter of the previous year. Revenue from operations surged 20.02% year-on-year to 2,194 crore, driven by strong growth in financial services distribution and merchant subscriptions. On a sequential basis, revenue grew 6.45% from 2,061 crore in Q2 FY26. The Company’s shareholding has seen a notable shift, with domestic institutional investors like Tata AIA Life Insurance and SBI Life Insurance increasing their stakes as foreign giants like SoftBank and Ant Financial fully exited their positions by late 2025.