Paytm Arm Gets RBI Approval for Offline & Cross-Border Payments; Stock Up 44% in 6 Months

Shares of One 97 Communications Ltd, better known as Paytm, were in focus on Thursday after its wholly owned subsidiary, Paytm Payments Services Limited (PPSL), received regulatory approval from the Reserve Bank of India (RBI) to operate as a payment aggregator for physical (offline) payments and cross-border transactions, covering both inward and outward flows as per the exchange filing.

The RBI approval allows Paytm Payments Services to aggregate payments for offline merchant transactions and cross-border payments, in addition to the online payment aggregator authorisation already granted on November 26, 2025, under the Payment and Settlement Systems Act, 2007.

Impact on Paytm's Business

The RBI nod is a big milestone for Paytm as it strengthens the company's merchant payments business. The ability to handle offline and cross-border transactions will now open new revenue streams for Paytm, which will now compete against global payment players.

Paytm Share Price Today

At the end of trading today, Paytm shares closed at Rs. 1,287.40, up Rs. 18.80 or 1.48% on Thursday. Over the past six months, the stock has surged nearly 44.41%.

Paytm Q2 FY26 Results

In its Q2 FY26 results, Paytm reported mixed performance. According to consolidated financial statements, net profit declined sharply by 98% year-on-year to Rs. 21 crore, compared with Rs. 939 crore in the same quarter last year. The steep fall was largely due to the absence of a one-time gain of Rs. 1,345 crore recorded in the July-September quarter of FY25.

Despite the drop in profit, revenue from core operations rose 24% YoY to Rs. 2,061 crore, up from Rs. 1,659 crore in Q2 FY25. Meanwhile, total expenses declined 8.15% to Rs. 2,062 crore, compared to Rs. 2,245 crore a year ago.

Brokerage View: Geojit Maintains HOLD

In its latest report, Geojit Financial Services said Paytm delivered a strong operational performance, driven by double-digit growth across key levers. However, Geojit flagged regulatory uncertainties and premium valuation as near-term concerns and reiterated its HOLD rating on Paytm shares, with a revised target price of Rs. 1,481.

The report mentioned, "The company delivered strong performance, buoyed by double-digit growth across core operational levers, on the back of improved execution, healthier customer retention, stronger online merchant traction, and the introduction of new products on its devices. The company continues its focus on AI-driven product enhancements, strengthening of the merchant ecosystem, consolidation of financial products on its platform, better merchant discount rates (MDRs), and disciplined customer acquisition are expected to support operational stability and are likely to also enhance its long-term position."

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