Paytm, India’s leading UPI payments app, has continued its core operations without disruption following the Reserve Bank of India’s action on Paytm Payments Bank Ltd.. Brokerage firms say there has been no material impact on its business, crediting the earlier separation of its core operations from the banking arm for reinforcing management credibility.
In its recent exchange filing, Paytm (One 97 Communications Ltd.) said its services continue to run normally for both users and merchants. It reiterated that it has no material business ties with Paytm Payments Bank Ltd. and no overlap in board or management, adding that the bank operates independently.
The company had earlier written down its investment in Paytm Payments Bank Ltd. as of March 31, 2024, and said there is no direct financial impact on its business, reinforcing strong governance and investor confidence.
Brokerage firms tracking Paytm said the Reserve Bank of India’s action on Paytm Payments Bank Ltd. has had limited direct impact on its core operations, citing the structural separation between the listed entity and the bank as a key factor supporting confidence in the business, its compliance framework, and overall trust.
A report by Emkay Global Financial Services said the impact on Paytm is negligible, as it had already ended its commercial ties with Paytm Payments Bank Ltd. and fully impaired its equity investment by March 2024. The brokerage described Paytm as “legally ring-fenced” from the bank and noted that the Reserve Bank of India granting a final Payment Aggregator licence in November 2025 indicates regulatory comfort with the listed entity – a view echoed by other analysts.
Bernstein said there is “unlikely to be any impact on the company’s numbers” due to the clear separation between Paytm and Paytm Payments Bank Ltd.. Meanwhile, Investec noted that the payments bank has had no business relationship with One 97 since March 2024.
Following the regulatory action, markets reflected strong investor confidence in Paytm, with analysts saying its growth trajectory remains intact and the impact on its core business is limited.
Paytm shares fell 8.38% to ₹1,051.10 in early trade on the NSE on Monday but later rebounded to close at ₹1,137.80, down 0.83%, recovering most of the day’s losses.
Strong user and merchant engagement reflects continued trust in Paytm
User and merchant engagement on Paytm has remained resilient following the 2024 regulatory action on Paytm Payments Bank Ltd., with subsequent quarters showing steady growth across key operating metrics.
Paytm’s merchant ecosystem continued to expand, with device subscriptions rising from 1.30 crore in Q1 to 1.37 crore in Q2 and 1.44 crore in Q3, strengthening its base of recurring revenue from devices and services. Net payment revenue also increased sequentially, indicating improved monetization of its merchant network.
On the consumer front, Paytm’s monthly transacting users reached 7.6 crore, while consumer UPI GMV grew 35% over the first nine months of FY26 – outpacing the industry’s 16% growth – signalling strong engagement and retention.
Goldman Sachs, citing NPCI data, said Paytm’s UPI market share by value rose to 6.5% in March 2026, up from 6.2% in December 2025 and 5.4% a year earlier.
Paytm’s financial services distribution business has expanded steadily, with revenue rising from ₹561 crore in Q1 to ₹611 crore in Q2 and ₹672 crore in Q3, strengthening overall monetisation. Analysts said the sustained growth across merchant, consumer, and financial services segments since the 2024 regulatory action highlights continued user trust and merchant confidence, with PPBL-related issues confined to the banking entity.