Quick Take
- PayU India posted its first full-year operating profit in FY26, parent Prosus said Monday.
- Revenue rose 13% to $781 Mn (Rs 7,384 Cr), with payments contributing 74%.
- Adjusted EBITDA hit $18 Mn after a $25 Mn loss in FY25.
In This Article
PayU India FY26 delivered the fintech firm’s first full-year operating profit, as revenue climbed 13% to $781 Mn (Rs 7,384 Cr) for the year ended March 31, 2026, parent Prosus reported on Monday.
The turnaround came from sharper margins across the payments and credit businesses, alongside an exit from low-margin portfolios in the second half. PayU’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) reached $18 Mn in FY26, reversing a $25 Mn loss a year earlier, according to the Prosus FY26 annual report.
StartupFeed Insight
The real story sits in the credit arm, which swung from a $28 Mn adjusted EBITDA loss in FY25 to a $6 Mn profit, Prosus reported. That swing, plus value-added services now at 33% of payments revenue, shows PayU is monetising higher-margin layers instead of chasing raw volume. Lenders and rival aggregators should watch closely: StartupFeed expects PayU to file confidentially for a delayed IPO once it strings together consecutive profitable quarters, likely within the next 12 to 18 months. Sustained margins, not headline revenue, will decide that listing window. By Avinash.
PayU India FY26 Numbers At A Glance
PayU India FY26 results show a fintech business that turned profitable while still growing its top line. Prosus released the figures in its FY26 annual report on Monday, June 29, 2026.
| Metric | Detail | Notes |
|---|---|---|
| Total Revenue | $781 Mn (Rs 7,384 Cr) | +13% YoY (Prosus); +11% in local currency |
| Adjusted EBITDA | $18 Mn (positive) | Versus $25 Mn loss in FY25 (Prosus) |
| Ebit Loss | $10 Mn | Narrowed from $49 Mn a year earlier (Prosus) |
| Payments Revenue | $577 Mn (Rs 5,456 Cr) | +10% YoY, 74% of total revenue (Prosus) |
| Credit Revenue | $204 Mn (Rs 1,929 Cr) | +19% YoY, turned profitable (Prosus) |
| Total Payment Value | $90 Bn | Transactions rose 49% during FY26 (Prosus) |
The standout fact: payments transactions jumped 49% even as PayU shed low-margin business, which trimmed reported revenue growth in the second half (Prosus).
About PayU India
PayU India is the digital payments and lending arm of Dutch technology investor Prosus, founded in 2002. It runs two businesses: a merchant payment gateway and a digital lending unit. The lending vertical operates through NBFC PayU Finance and the LazyPay buy-now-pay-later platform. PayU India accounts for around 25% of India’s online payments industry revenues and holds $682 Mn in credit assets under management (Prosus).
Is PayU India Profitable Now?
PayU India is now profitable at the operating level for a full year for the first time. The firm posted $18 Mn in adjusted EBITDA in FY26, against a $25 Mn loss in FY25, Prosus reported. The credit business drove much of the shift, moving from a $28 Mn adjusted EBITDA loss to a $6 Mn profit.
“PayU is increasingly connected across this ecosystem, adding new partnerships and driving measurable cross-platform synergies,” Prosus said in its FY26 annual report.
Higher-margin value-added services and SaaS products now contribute 33% of payments revenue, Prosus said. That mix, plus the exit from loss-making portfolios, explains why margins improved even as raw revenue growth cooled in H2.
How Does PayU Stack Up Against Rivals?
PayU India competes with Razorpay, Cashfree, and PhonePe in the online payments market. PayU’s claimed 25% share of India’s online payments industry revenues places it among the largest merchant aggregators (Prosus). Its $90 Bn in total payment value for FY26 reflects deep penetration with online and offline merchants.
| Player | Core Strength |
|---|---|
| PayU India | ~25% of online payments revenue; payments plus lending |
| Razorpay | Developer-first gateway, neobanking suite |
| PhonePe | UPI consumer scale, merchant QR network |
What sets PayU apart is its combined payments-and-credit engine, now cross-selling into Prosus portfolio firms such as Swiggy, Meesho, and ixigo.
What’s Next
PayU India will lean on its November 2025 integrated RBI authorisation to expand across online, offline, and cross-border payments. Watch for deeper lending integration inside Prosus group apps over the next two to three quarters. A confidential IPO filing remains the bigger prize once profits hold steady. Can PayU sustain these margins while keeping revenue growth above 10%?
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Last updated: June 30, 2026 at 11:45 IST
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
Written by Avinash. Published: June 30, 2026. Updated: June 30, 2026. Have a tip? Write to us at editorial@startupfeed.in.
