Paytm Share Price Surges 6% After RBI Grants Approval to Subsidiary for Online Payment Aggregation

Mumbai, August 13, 2025 – Paytm share price surged on Wednesday after the RBI gave in-principle approval to its subsidiary, Paytm Payments Services Ltd. (PPSL), to operate as an online payment aggregator.

The approval comes as a major regulatory relief for the company, lifting the merchant onboarding freeze that had been in place since November 2022.

Market Performance

• Intraday High: ₹1,186, up 6% from the previous close.
• Trading at 9:30 AM: ₹1,181, higher by 5.45% on the NSE.
• 1-Month Gain: Over 17% rise in Paytm share price during the last month.

Main News

PPSL, a wholly-owned subsidiary of One97 Communications, has been permitted to resume onboarding merchants.

The RBI, however, has set specific conditions:

• Conduct a comprehensive system audit, including a cybersecurity review.
• Submit the audit report within six months.
• If the report is not submitted on time, the provisional approval will lapse, and the final licence will not be granted.

The earlier ban had limited impact on existing merchants and was primarily applicable to new online merchant onboarding.

Company Details

In the past year, One97 Communications has undergone significant shareholder changes. Both Antfin and Berkshire Hathaway exited their stakes through block deals, booking losses in the process.

Financial Performance – Q1 FY2025-26

Revenue

• ₹1,918 crore in Q1, up 28% YoY.

EBITDA

• ₹72 crore, marking a turnaround from losses in the previous two quarters.

EBITDA Margins

• Improvement driven by operating leverage and higher margins across multiple business lines.

Net Profit

• ₹123 crore, compared to a loss of ₹839 crore in the same quarter last year.

Total Income

• ₹2,159 crore, including other income.

The improved performance was supported by strong growth in the lending segment and tighter control over marketing and employee-related expenses.

Summary

The surge in Paytm share price was driven by the RBI’s in-principle nod for PPSL to operate as an online payment aggregator. Alongside this regulatory boost, Paytm’s strong Q1 results — including its first June-quarter profit — have strengthened investor sentiment.