PayU India, the fintech arm of Dutch investor Prosus, posted its first full-year operating profit in fiscal year 2026, driven by margin improvements and strategic exits from loss-making segments. The company's revenue advanced 13% to $781 million despite revenue softness in the second half due to portfolio pruning.
- FY26 revenue rose 13% to $781M; first full-year operating profit recorded
- Exited negative margin portfolios impacting second-half sequential revenue
- Credit segment turned profitable with 19% revenue growth and improved loan metrics
What happened
PayU India reported adjusted EBITDA of $18 million for fiscal year 2026, a significant turnaround from a $25 million loss in the previous year. Revenue grew by 13% to $781 million, with a notable 49% increase in payment transaction volumes reaching $90 billion. However, the company experienced a decline in sequential revenue during the second half of the year after exiting certain low-margin portfolios.
The payments business, which constitutes 74% of total revenue, grew 10% to $577 million and improved adjusted EBITDA from $3 million to $12 million. The credit segment also saw improved performance with revenue growth of 19% to $204 million and an adjusted EBITDA swing to $6 million from a prior loss, driven by a shift to a partnership-focused, digital-only credit model.
Why it matters
This milestone of achieving full-year operating profitability highlights PayU India's successful strategy of prioritizing margin quality and scaling higher-value services amid competitive pressures in the fintech landscape. The exit from negative margin portfolios underscores a disciplined focus on sustainable growth rather than mere volume expansion.
Additionally, PayU’s strengthening regulatory position with all key payment aggregator licenses enables it to deepen its engagement with Indian digital commerce ecosystems. Collaborations with major Indian platforms have accelerated transaction volumes and credit originations, advancing PayU’s vision as a critical payments infrastructure partner in the market.
What to watch next
Market watchers should observe how PayU India further leverages its acquisitions such as Mindgate and its proprietary technology stacks to enhance transaction success rates and roll out innovative UPI-based services. These efforts could shape the company’s competitive positioning against other fintech players and consolidate its merchant reach.
The credit segment’s performance recovery is another key area, as the company refines its risk management and digital loan origination. Continued growth and profitability there will be essential for maintaining overall financial momentum, especially as PayU integrates more deeply with its Indian portfolio companies and expands its ecosystem footprint.