At a time when competitor One Mobikwik has recently received the Reserve Bank of India (RBI) nod for a non-banking financial company (NBFC) license, One97 Communication, the parent company of Paytm, has admitted it is currently not too excited for an NBFC license and will continue to focus on its credit distribution model for merchants and consumers.
This was confirmed by the management of Paytm during the earnings concall on Thursday, a day after the company reported its fourth quarter earnings for the financial year ending March 2026.
"We really like our model. We focus on what we are uniquely good at — distribution, building great technology that helps customers and merchants convert better, generating insights on merchants, and driving strong collections capabilities," said Madhur Deora, President and Group CFO at Paytm, when asked about an NBFC license.
"At the same time, our partners — who are very strong blue-chip institutions — are highly capable at managing capital, risk, cyclicality, and underwriting. We believe this creates a win-win partnership, and Paytm aims to be a win-win partner across the board, especially in lending," he added.
For Q4FY26, Paytm's net profit for the fourth quarter of financial year 2026 slip 18.2% sequentially, according to an exchange filing on Wednesday. In the preceding quarter, the bottom-line had surged as payments volume shot up during the festive season.
The company posted a consolidated bottom-line of Rs 184 crore in Q4, compared to Rs 225 crore in the previous quarter. On the other hand, revenue from operations went up 3.2% to Rs 2,264 crore from Rs 2,194 crore in Q3.
ALSO READ: Paytm Shares In Focus As Brokerages Give Mixed Review On Q4 Profit Slip — Should You Buy?
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.