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| Net Profit Growth YoY | 976.2%Q2 FY2027 |
|---|---|
| Market Cap | ₹1,23,568 CrLarge Cap |
| P/E TTM | 144.52xIndustry 48.25x |
| Day RSI | 71.46Overbought Zone |
Key highlights
- RBI Department of Payment and Settlement Systems granted in-principle approval on November 13, 2026
- Authorisation permits PPSL to set up and operate a PPI payment system under the PSS Act, 2007
- Company must submit a System Audit Report including a Cyber Security audit within six months
- One 97 Communications reported Q2 FY2027 revenue of ₹2,648 crore, representing 28.48% YoY growth
- Final Certificate of Authorisation is mandatory before commercial issuance of wallets can resume
Strategic Regulatory Milestone for Paytm Wallet
One 97 Communications, the parent entity of Paytm, informed exchanges that its wholly-owned subsidiary, Paytm Payments Services Limited, has secured in-principle authorisation from the Reserve Bank of India. The letter, dated November 13, 2026, allows PPSL to establish and operate a payment system for the issuance of Prepaid Payment Instruments in India. This development aligns with the company's previous disclosure in its Q1 FY2027 earnings release regarding its application for a wallet license.
The authorisation is governed by the Payment and Settlement Systems Act, 2007, and requires strict adherence to RBI Master Directions updated as of August 27, 2021.
Compliance Roadmap and Audit Requirements
- PPSL is required to conduct a System Audit, including a Cyber Security audit, by a CERT-In empanelled auditor
- The audit must verify compliance with Cyber Resilience and Digital Payment Security Controls for non-bank entities
- A formal System Audit Report must be submitted to the RBI within six months of the letter issuance
- Failure to submit the required audit report within the timeframe will result in the lapse of this in-principle authorisation
- PPSL must also demonstrate compliance with RBI circulars regarding the storage of payment system data within India
Financial Performance and Market Context
The regulatory progress comes as Paytm demonstrates significant financial improvement, reporting a net profit of ₹226 crore in the quarter ended September 30, 2026. This represents a 976.19% increase compared to the same period in the previous year. Operating revenue for the quarter rose 28.48% YoY to ₹2,648 crore, with operating profit margins improving to 10.2%.
Despite the growth, the stock trades at a TTM Price-to-Earnings ratio of 144.52x, which is considerably higher than the industry average of 48.25x. The company maintains a strong market position with a market capitalization exceeding ₹1.23 lakh crore and a 1-year price appreciation of 47.27%.
Expansion of Regulatory Permissions
This approval marks a critical return to the wallet business for Paytm, following a string of regulatory clearances. Earlier in July 2026, the company secured a Payment Institution Licence in Luxembourg and received RBI approval to operate as a Payment Aggregator for offline and cross-border transactions in December 2025. Management has previously guided for a Payments Processing Margin expansion of 2.5 basis points following the NPCI 0.4% UPI MDR framework implementation.
Additionally, the company is scheduled to hold institutional investor meetings across major global financial hubs from November 13 to November 27, 2026, to discuss its operational roadmap.
| Date | Announcement | Amount |
|---|---|---|
| 02 Jul 2026 | Payment Institution Licence granted by CSSF Luxembourg to subsidiary Paytm Europe Payments S.A.Source: bajajbroking.in | – |
| 17 Dec 2025 | RBI approval to Paytm Payments Services Ltd to operate as Payment Aggregator for Physical (offline) and Cross-Border transactionsSource: bajajbroking.in | – |
| 26 Nov 2025 | RBI Certificate of Authorisation granted to Paytm Payments Services Ltd to operate as a Payment AggregatorSource: BSE filing | – |
| 12 Aug 2025 | RBI in-principle authorisation granted to Paytm Payments Services Ltd to operate as an Online Payment AggregatorSource: theheadandtale.com | – |
What to watch next
- Submission of System Audit Report to RBI within the six-month deadline by May 2027
- Grant of Final Certificate of Authorisation for PPSL to resume wallet issuance
- Outcome of institutional investor meetings scheduled from November 13 to November 27, 2026
- Implementation of 2.5 basis points expansion in Payments Processing Margins
| Share price | ₹1923.6 |
|---|---|
| Market capitalisation | ₹1.24L Cr |
| Revenue (annual) | ₹8,437.00 Cr |
| Net profit (annual) | ₹553.00 Cr |
| Revenue (latest quarter) | ₹2,648.00 Cr+8.17% vs previous quarter |
| Net profit (latest quarter) | ₹226.00 Cr+2.73% vs previous quarter |
| P/E (TTM) | 144.52×Sector 23.3× |
| Promoter holding | 0%0.00% QoQ |
| FII holding | 43.52%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by One 97 Communications Limited announcing the receipt of in-principle authorisation from the RBI for its subsidiary. Market figures from a third-party data provider.
