O9One 97 Communications543396Quarterly results

Q2 results, two Rs. 500 crore subsidiary investments, MDR update and DLG approval

Q2: revenue Rs. 2,648 crore, profit Rs. 225 crore.

By ScoutQuest · Mon 26 Oct 2026, 9:32 PM IST · 2 min read

Revenue from operations

Rs. 2,648 crore

Profit for the period

Rs. 225 crore

MDR cap / PPM uplift

0.4% cap on select payments above ₹2,000; ~2.5 bps PPM uplift seen

Results first

The board approved the unaudited consolidated results for the quarter ended September 30, 2026. Revenue from operations was Rs. 2,648 crore and profit for the period was Rs. 225 crore. These are unaudited numbers, reviewed by the statutory auditors and carry a limited review report.

Two funding lines of up to INR 500 Crores each

• The board approved an additional investment of up to INR 500 Crores in wholly owned subsidiary Paytm Cloud Technologies Limited, in one or more tranches.
• The board of Paytm Cloud Technologies, at its meeting held the same day, also approved an additional investment of up to INR 500 Crores in its own wholly owned subsidiary, Paytm Singapore Pte. Ltd., again in one or more tranches.
• The company said these investments are proposed to support the two companies' future requirements of working capital, investments and business expansion.
• In plain terms, this is the listed company putting capital into companies it fully owns, which in turn puts capital into a company it fully owns, so the money stays inside the group and is meant for their operations and growth.

MDR, the payment fee update

• As per NPCI's press release dated October 13, 2026, MDR will be implemented immediately after Diwali, on a date to be notified separately.
• The proposed cap is 0.4% MDR on select payments (non-industry merchants) for payments above ₹2,000.
• Based on the company's current GMV mix, it expects an indicative uplift of approximately 2.5 bps in overall Payments Processing Margin (PPM).
• PPM is defined in the update as MDR revenue earned on payments GMV net of payments processing charges. The company said it has been expanding structurally and is comfortably above 4 bps currently.
• MDR is the fee a merchant pays for accepting a payment. The company's own words are that the 2.5 bps figure is indicative, and that the actual outcome may stabilise over the quarters after implementation.

Default Loss Guarantee

• The board approved a DLG on loans disbursed by the company's lending partners from time to time.
• The company said this is in line with its existing business model of facilitating loan distribution.
• Simply put, a DLG is a guarantee the company gives on such loans, so a slice of the default risk sits with the company if borrowers do not repay. Detailed terms are set out in the annexure to the update.

Also in the results notes

• The auditors' review report carries an Emphasis of Matter on a Show Cause Notice received by the company and two subsidiaries from the Directorate of Enforcement, alleging contraventions of the Foreign Exchange Management Act, 1999. The aggregate value of the contraventions included in the notice is approximately INR 611 crores.
• The auditors' conclusion is not modified in respect of this matter.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

About ScoutQuest · Logos provided by Logo.dev