One 97 Communications (Paytm) Publishes FY2025-26 BRSR Report

One 97 Communications Ltd (OCL) has released its Business Responsibility and Sustainability Report (BRSR) for the fiscal year 2025-26. The report marks a significant change with the inclusion of Paytm Payments Services Limited (PPSL), OCL’s wholly owned material subsidiary, following the transfer of the offline merchant payments business on November 30, 2025.

Reader Takeaway: Expanded reporting boundary and regulatory disclosures highlight ongoing compliance focus alongside sustainability efforts.

What just happened

The BRSR for FY2025-26 now encompasses both One 97 Communications Ltd (OCL) and its subsidiary, Paytm Payments Services Limited (PPSL). This change in reporting boundary means that year-on-year comparisons require careful consideration. The company also received 'Reasonable Assurance' for BRSR Core Indicators and 'Limited Assurance' for Non-Core Indicators from SGS India Private Limited.

Why this matters

This filing provides crucial insights into OCL's operational performance, sustainability initiatives, and its approach to governance and regulatory compliance. For investors, it offers a detailed look at the company's ESG framework and how it navigates regulatory challenges, including tax demands and past penalties.

The backstory

One 97 Communications is a leading digital payments and financial services company in India, operating the Paytm platform. The company has been focused on expanding its digital payment ecosystem, including services for merchants and consumers. Recent years have seen increased regulatory oversight across the fintech sector.

What changes now

The expanded reporting boundary will offer a more consolidated view of the company's operations, particularly in the payments sector. Investors will have greater transparency into the combined ESG performance. The report reiterates the company's commitment to its 'Consequence Management Policy' and ESG/CSR committees.

Risks to watch

Key concerns highlighted include the ongoing receipt of Goods and Services Tax (GST) demand orders and penalties from various state tax authorities, primarily related to input tax credit and invoice matters. Investors should also note the reporting comparability issue due to the change in scope from standalone OCL in the previous year to combined OCL and PPSL in the current year.

Context metrics (time-bound)

• Transacting Users: Average of 7.55 crore for FY2025-26.
• Merchant Network: 4.90 crore merchants as of March 2026.
• Paperless Savings: Enabled savings of 33.15 million pounds in FY2025-26.
• RBI Compounding Fee: Paid Rs 18.76 lakh in February 2026 for FEMA contraventions.

What to track next

Investors should closely monitor the resolution of GST demand orders and any future regulatory actions. The company’s progress on cyber resilience, ISO certifications, and risk management frameworks will also be important indicators.