PayU India, a fintech platform owned by Prosus, reported a significant financial turnaround in FY26, posting its first adjusted EBITDA profit and growing revenue by 12.5% year over year to $781 million. The company’s payments and credit businesses both contributed to this improved performance.
- Revenue grew 12.5% to $781 million in FY26
- Adjusted EBITDA turned positive with $18 million total profit
- Credit business adjusted EBITDA swung from a $28 million loss to $6 million profit
What happened
PayU India reported revenue of $781 million in fiscal year 2026, marking a 12.5% increase from $694 million in the previous year. This growth was accompanied by a notable shift in profitability as the company moved to adjusted EBITDA profitability, posting $18 million for the entire year compared to previous losses. In the second half of FY26 alone, adjusted EBITDA was $19 million, reflecting improved operational efficiencies.
The company’s payments vertical grew revenue by 10% to $577 million and achieved an adjusted EBITDA margin of 2%. Meanwhile, its credit business saw a stronger top-line growth of 19%, from $171 million to $204 million, and turned its adjusted EBITDA around from a loss of $28 million in FY25 to a profit of $6 million in FY26. PayU also exited negative-margin portfolios in the second half of the fiscal year, impacting overall revenue but bolstering profitability.
Why it matters
Achieving profitability on an adjusted EBITDA basis is a key milestone for PayU India, demonstrating successful management of costs and portfolio quality in a competitive fintech market. This profitability signals that the company is strengthening its operational model, which is critical for investor confidence and long-term sustainability.
The growth in revenue combined with an improved margin profile highlights PayU’s ability to scale both its payments and credit businesses effectively. This also positions the company well to capture market share in India’s expanding digital payments and credit sectors, which continue to grow due to increasing consumer adoption and financial digitization.
What to watch next
Observers will be closely monitoring how PayU India balances growth and profitability going forward, especially as it navigates market competition and regulatory changes in India’s fintech ecosystem. The company’s strategy to exit lower-margin portfolios suggests it may focus on higher-quality earnings streams moving ahead.
Additionally, the performance of PayU’s credit business will be a key area to watch as it has shown the most dramatic profitability improvement. Continued innovation and risk management in this vertical will be essential to sustain its positive momentum and further expand its footprint in the credit segment.