Synopsis
During the second half of FY26, PayU India also exited certain "negative margin portfolios", impacting its sequential revenue growth. In the October-March, the fintech company reported revenue of $384 million, down from $395 million in six months ending September 30, 2025.Listen to this article in summarized format
PayU India’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) came in at $18 million in FY26, compared with a loss of $25 million in fiscal year 2025, Prosus said in its annual report.
Revenue rose 13% to $781 million for the year ended March 31, 2026. In local currency terms, excluding mergers and acquisitions, revenue grew 11%.
PayU India’s adjusted earnings before interest and taxes (Ebit) loss narrowed to $10 million from $49 million a year earlier. The company processed $90 billion in total payment value during the year, with transactions rising 49%.
Key exits
During the second half of FY26, PayU India exited certain “negative margin portfolios”, impacting its sequential revenue growth. In the October-March period, the fintech company reported revenue of $384 million, down from $397 million in the six months ended September 30, 2025.
However, profitability improved sharply in the second half. PayU India reported adjusted Ebitda of $19 million in the October-March period, compared with a $1 million loss in the first half of FY26.
PayU’s payments segment, its largest business, grew 10% to $577 million, contributing 74% of the company’s total revenue. In local currency terms, excluding M&A, payments revenue grew 6%. Adjusted Ebitda for the payments business rose to $12 million from $3 million in FY25.
“Deliberately balancing faster-than-market payment-processing growth in certain segments while exiting negative margin portfolios was a key factor in the four times increase in adjusted Ebitda to $12 million,” Prosus said.
Higher-margin value-added services and software-as-a-service offerings accounted for 33% of PayU’s payments revenue, Prosus said. The payments company also used the Mindgate acquisition to build its own third-party application provider stack and person-to-merchant switch, aimed at improving transaction success rates and enabling new UPI-based services for merchants.
Through Mindgate and Wibmo, PayU helps banks in India process one in every two UPI transactions and three of every four credit card transactions, Prosus said.
Credit business in the black
PayU India’s credit business also turned profitable during the year. Credit revenue rose 19% to $204 million, while adjusted Ebitda stood at $6 million, compared with a loss of $28 million in FY25. In local currency terms, excluding M&A, the credit business grew 26%.
Prosus said the credit business shifted to a partnership-led, digital-only model, which helped reduce the net loss rate to 4% from 5% a year earlier. Loan issuances grew to $1.36 billion in FY26, while the loan book stood at $612 million at the end of March.
The results come after PayU cleared key regulatory approvals in India. ET had reported in May 2025 that the Reserve Bank of India had given PayU final approval to operate as an online payment aggregator. Prosus said PayU has received all three payment aggregator licences: online, offline and cross-border.
Prosus also said PayU is becoming more closely linked with its Indian portfolio companies. PayU’s processing of Swiggy’s gross merchandise value increased fivefold year on year, while its collaboration with Meesho led to a more than 100% increase in loan originations for consumers and merchants within nine months. Handling of ixigo’s UPI volumes grew 50% in one month, the company added.
