Whalesbook
Business Continues as Usual After RBI Directive
Paytm's operations continue without disruption following the Reserve Bank of India (RBI) directive on Paytm Payments Bank Ltd. (PPBL). Brokerage analyses suggest the impact on Paytm's core business is minimal, supported by the company's earlier strategic separation from the banking entity.
Strategic Separation Protects Core Operations
One 97 Communications Ltd., the company operating Paytm, has stated that its services remain fully functional for both users and merchants. The company has no significant business ties, board representation, or management overlap with PPBL, which now operates independently. Paytm had previously impaired its investment in PPBL as of March 31, 2024. This move further isolates its core business from direct financial repercussions and reinforces its governance framework.
Analysts Confirm Minimal Impact
Leading financial institutions have echoed this sentiment. Emkay Global Financial Services noted that Paytm is "legally ring-fenced" from PPBL, having terminated commercial agreements and fully impaired its equity investment by March 2024. Bernstein similarly predicts "unlikely to be any impact on the company's numbers" due to the clear separation. Investec confirmed no business relationship since March 2024.
Paytm Reports Strong User and Merchant Growth
Despite initial market jitters, investor confidence appears strong. Paytm's shares experienced a sharp decline early Monday, falling over 8% on the NSE, but subsequently recovered to close down only 0.83% at Rs 1,137.80. This stability stems from continued user and merchant engagement, alongside steady expansion in key operating metrics. The merchant base saw device subscriptions rise to 1.44 crore by Q3, driving recurring revenue. Net payment revenue also grew sequentially. On the consumer front, monthly transacting users reached 7.6 crore, with UPI GMV growing 35% over nine months in FY26, significantly outpacing industry growth. Goldman Sachs reported Paytm's UPI market share by value increased to 6.5% in March 2026. The financial services distribution segment also contributed, with revenue rising to Rs 672 crore in Q3. Analysts maintain that these growth figures, reported after the 2024 regulatory action, reflect sustained user trust and merchant confidence in Paytm's platform.