Below is a structured extraction and summary of the relevant and actionable financial information from the Paytm (One 97 Communications Limited) results filing dated November 4, 2025, suitable for an investment analysis team:

1. Auditor’s Note

• Type of audit report: Limited Review Report by S.R. Batliboi & Associates LLP (Statutory Auditors).
• Qualifications/Concerns:
  • No qualifications or adverse opinions expressed.
  • Emphasis of Matter:
    • Show Cause Notice (SCN) from Directorate of Enforcement, Govt. of India, alleging contraventions of FEMA provisions related to investments and equity raised by subsidiaries (aggregate value ~INR 611 crores). Management is taking steps; provision recorded for estimated compounding fees. Outcome uncertain.
    • Status of subsidiary Paytm Payments Services Limited’s Payment Aggregator authorization from RBI; in-principle approval granted, awaiting final certificate. No material impact expected.
• Conclusion: Auditor’s opinion is unmodified and no material misstatements noted.

2. Financial Performance

2.1 Consolidated Financials (INR crores)

2.2 Standalone Financials (INR crores)

2.3 Margins and Other Metrics

• Consolidated operating profit before exceptional items (Q2 FY26): INR 221 crores vs. loss of INR 411 crores in Q2 FY25.
• Exceptional items in Q2 FY26: INR (190) crores (impairments related to online gaming JV and investments).
• Consolidated net profit for Q2 FY26: INR 21 crores vs. INR 930 crores in Q2 FY25 (which included a large exceptional gain).
• Standalone net loss in Q2 FY26: INR 264 crores vs. profit of INR 821 crores in Q2 FY25.
• Share-based payment expenses significantly reduced in FY26 compared to prior periods (Standalone H1 FY26: INR 61 crores vs. H1 FY25: INR 463 crores).
• EPS reflects losses in FY26 quarters, positive in prior year quarter due to exceptional gains.

3. Detailed Notes and Management Commentary

• Accounting Policies: Results prepared as per Indian Accounting Standards (Ind AS), Regulation 33 SEBI Listing Regulations.
• Segment Reporting: Company and Group operate as a single segment (payment services, financial services, marketing services) as per Ind AS 108.
• Exceptional Items:
  • Q2 FY26 includes impairment losses related to First Games Technology Private Limited (FGTPL) due to enactment of online gaming prohibition law (INR 205 crores impairment on investment and INR 190 crores on loan).
  • Additional impairment provisions on investments in subsidiaries, associates, and optionally convertible debentures.
  • Prior year exceptional gain from sale of movie ticketing and events business to Zomato (INR 1,258 crores standalone, INR 1,345 crores consolidated).
  • ESOP cancellation charge of INR 492 crores in FY25.
• Regulatory Matters:
  • SCN from Directorate of Enforcement alleging FEMA violations related to investments in subsidiaries; aggregate value ~INR 611 crores. Provision made for estimated compounding fees.
  • RBI has compounded INR 21 crores related to Nearbuy India Private Limited; INR 312 crores matters observed as compliant.
• RBI Payment Aggregator License:
  • Paytm Payments Services Limited received in-principle authorization from RBI in August 2025; awaiting final certificate after system audit. No material impact expected on business or financials.
• IPO Proceeds Utilization:
  • Total net IPO proceeds INR 8,119 crores; INR 6,119 crores utilized as of Sep 30, 2025.
  • Utilization includes marketing, merchant base expansion, technology platform strengthening (INR 4,300 crores), new business initiatives and acquisitions (INR 2,000 crores), and general corporate purposes (INR 1,819 crores).
  • INR 2,000 crores remains unutilized, invested in fixed deposits and monitoring agency accounts.
• Share-based Payments: Significant reduction in share-based payment expenses in FY26 compared to FY25, reflecting ESOP cancellations and lower grants.
• Impairments:
  • Depreciation in Q1 FY26 includes INR 24 crores impairment charge.
  • Goodwill impairment of INR 10 crores recorded in FY25.
• Subsidiary Changes:
  • New subsidiaries added post quarter: Foster Payment Networks Pvt Ltd, Paytm Intelligence Ltd, Paytm Life Insurance Ltd.
• Currency Presentation: Amounts now presented in INR crores (previously in millions).

4. Segment Information

• No segment-wise financials disclosed; management treats the business as a single operating segment.
• Business units include payment services, financial services distribution, and marketing services.

5. Capex, Projects, and Corporate Activity

• Capital Expenditure:
  • Standalone Capex (PPE and intangible assets) for H1 FY26: INR 192 crores vs. INR 81 crores in H1 FY25.
  • Consolidated Capex for H1 FY26: INR 202 crores vs. INR 92 crores in H1 FY25.
• Acquisitions and Investments:
  • Approved additional investment of up to INR 2,250 crores in wholly owned subsidiary Paytm Payments Services Limited via rights issue to strengthen net worth, acquire offline merchant payment business, fund working capital, and support leadership.
  • Transfer of Offline Payments Business to PPSL approved, to comply with RBI guidelines.
• Impairments:
  • Significant impairments related to online gaming JV due to regulatory prohibition.
• Restructuring:
  • ESOP cancellations in FY25 leading to large charge; no new restructuring mentioned.
• Disposals:
  • Prior period sale of movie ticketing and events business to Zomato recognized as exceptional gain.

6. Standalone vs Consolidated

• Both standalone and consolidated financial results are provided and reviewed.
• Consolidated results include 28 subsidiaries, associates, and joint ventures.
• Consolidated net profit/loss and other metrics generally reflect standalone trends but include additional subsidiaries and associates.

Summary Table of Key Financials (INR crores)

Actionable Insights for Investment Team

• Profitability: Consolidated profitability has improved from losses in prior year but remains modest; standalone results show losses due to impairments and exceptional charges.
• Exceptional Items: Significant impairments related to regulatory changes in online gaming business; prior period gains from business disposals inflate comparatives.
• Regulatory Risks: Ongoing FEMA-related SCN with provisions made; RBI licensing progressing positively for payments subsidiary.
• Capital Allocation: Continued investment in subsidiary PPSL (INR 2,250 crores planned) to strengthen payments business and comply with RBI guidelines.
• Cash Flows: Operating cash flows positive on consolidated basis in H1 FY26 but negative standalone; investing activities show large movements in financial assets and investments.
• ESOP Impact: Large ESOP cancellation charge in prior year reduced share-based payment expenses in current year, improving cost structure.
• Segment: Single operating segment; no segmental breakdown available.
• Balance Sheet: Consolidated equity increased to INR 15,310 crores; total assets INR 22,537 crores as of Sep 30, 2025.
• IPO Proceeds: INR 2,000 crores of IPO proceeds remain unutilized, providing liquidity for growth or strategic initiatives.

This summary provides a comprehensive view of Paytm’s financial and operational status as per the latest filing, highlighting key figures, risks, and strategic moves for informed investment decision-making.