Description

One 97 Communications Limited (Paytm) clarifies that it received INR 128 crores incentive under RBI's PIDF scheme for H1 FY2026, which expired on December 31, 2025, and expects to offset the impact through higher revenues and targeted sales efforts.

Summary

One 97 Communications Limited (Paytm) provided clarification in response to stock exchange queries regarding news articles about the company’s shares falling 10% from day’s high. The company disclosed that it received INR 128 crores in incentives under the RBI’s Payment Infrastructure Development Fund (PIDF) scheme for the six months ended September 30, 2025. This scheme, which expired on December 31, 2025, provided incentives for deployment of payment acceptance devices in Tier-3 to Tier-6 centres and northeastern states. The company stated that if the scheme is not extended or replaced, it expects to significantly offset the impact through higher revenues and more targeted sales efforts.

Key Points

  • Paytm recognized INR 128 crores incentive under PIDF scheme for H1 FY2026 (six months ended September 30, 2025)
  • The incentive was for deployment of payment devices including Soundboxes and EDC Machines
  • Scheme covered Tier-3 to Tier-6 centres, northeastern states, and Jammu, Kashmir & Ladakh
  • PIDF scheme validity ended on December 31, 2025
  • Currently no announcement from RBI on extension or replacement of the scheme
  • Company plans to offset impact through higher revenues and more targeted sales efforts
  • Disclosure made in response to NSE and BSE queries regarding news article about stock price decline

Regulatory Changes

No regulatory changes announced. The company is awaiting any announcement from RBI or other authorities regarding extension or replacement of the PIDF scheme that expired on December 31, 2025.

Compliance Requirements

  • Company committed to make appropriate disclosures to stock exchanges in accordance with applicable laws as and when required
  • Disclosure hosted on company’s investor relations website at https://ir.paytm.com/
  • Response provided under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Important Dates

  • January 23, 2026: Date of clarification disclosure to stock exchanges
  • December 31, 2025: Expiry date of PIDF scheme
  • September 30, 2025: End of period for which INR 128 crores incentive was recognized

Impact Assessment

Financial Impact: The expiry of the PIDF scheme represents a potential revenue headwind of approximately INR 256 crores annually (based on INR 128 crores for six months). This is material to Paytm’s financials and explains the market’s negative reaction with a 10% intraday decline.

Operational Impact: The company’s business model for deploying payment devices in tier-3 to tier-6 cities and underserved regions may face profitability pressure without the incentive support. The company will need to demonstrate its ability to generate higher revenues and optimize sales efforts to maintain margins.

Strategic Response: Management’s stated strategy to offset the impact through higher revenues and targeted sales indicates a shift from incentive-driven expansion to revenue-focused deployment, which may slow device deployment in lower-tier markets.

Market Sentiment: The stock price decline reflects investor concerns about the sustainability of Paytm’s payment device deployment economics without government subsidies, particularly in less commercially viable tier-3 to tier-6 markets.

Impact Justification

Material disclosure about the end of a significant incentive scheme (INR 128 crores for 6 months) that could impact future revenues, though company expects to offset through operational improvements. Market reacted with stock decline.