PayU India Hits Profitability as FY26 Revenue Rises to $781 Million

Prosus-backed financial technology firm PayU India recorded a 12.5% revenue surge to $781 million (approximately ₹7,384 crore) during FY26, climbing from $694 million in FY25. The company achieved significant financial progress by securing positive adjusted EBITDA during the final six months of the fiscal year.

PayU India secured an adjusted EBITDA of $19 million during the second half of FY26, reversing an adjusted EBITDA loss of $6 million reported in H2 FY25. For the complete financial year FY26, the digital payments firm generated a total adjusted EBITDA of $18 million.

The company registered an adjusted EBITDA margin of 5% for H2 FY26, while the full-year margin reached 2%. This fiscal turnaround indicates enhanced cost control mechanisms alongside expanding operational leverage across the enterprise network.

Prosus indicated that PayU discontinued multiple negative-margin portfolios in H2 FY26 to prioritize core profitability and elevate backend efficiency. The strategic realignment triggered a short-term deceleration in top-line growth metrics during that specific timeframe.

Market specialists observe that global financial technology entities are pivoting heavily toward sustainable business operations, fiscal discipline, and bottom-line expansion after navigating an extended phase of aggressive, market-share-driven growth models.

The domestic digital transaction landscape maintains an upward trajectory, propelled by expanding Unified Payments Interface adoption, integrated corporate finance solutions, commercial merchant digitization, and rising consumer demand for online financial services.

The improved fiscal performance underscores the broad maturation of the local ecosystem as key market players balance operational scale against profitability metrics while simultaneously scaling credit mechanisms, merchant payment networks, and digital financial products.

PayU India operates as a prominent digital transaction infrastructure provider, delivering payment gateways, commercial tools, lending structures, and consumer financial products. The entity functions under global consumer internet conglomerate and technology investor Prosus.

Future Outlook

The financial turnaround achieved by PayU India in FY26 sets a baseline for self-sustaining growth within the rapidly evolving South Asian digital commerce space. By divesting from low-yield portfolios and securing positive operational cash flows, the entity positions itself to capitalize on secondary service offerings like credit deployment and corporate merchant ecosystems. Industry projections indicate that enterprise value will increasingly tie to sustainable unit economics rather than sheer transactional volume moving forward.

FAQs

What was PayU India’s total revenue for FY26?

PayU India generated $781 million (around ₹7,384 crore) in revenue for FY26, representing a 12.5% increase from the $694 million recorded in FY25.

Did PayU India achieve profitability in FY26?

Yes, the company turned adjusted EBITDA positive in the second half of FY26, posting $19 million for H2 and finishing the full financial year with an adjusted EBITDA of $18 million.

Why did PayU India exit certain portfolios during the financial year?

The company exited specific negative-margin portfolios during the second half of FY26 to enhance operational efficiency and improve overall profitability, despite a temporary impact on its revenue growth rate.

Who is the parent organization of PayU India?

PayU India is owned by Prosus, a prominent global consumer internet group and international technology investor with assets spanning multiple digital sectors.