PayU posts first-ever operational profit of $18 mn in FY26

Dutch investment firm Prosus-owned PayU has posted its first operational profit of USD 18 million (about Rs 1,701 crore) for FY26, mainly due to its exit from low-margin businesses, the company said on Monday (June 29, 2026).

PayU, which operates in India, has posted an operational profit of $19 million in the second half of FY26 and a loss of $1 million in the first half.

“Revenue grew 13% [11% in local currency terms] to $781 million or about ₹7,379 crore, with an EBITDA turning positive at $18 million for the first time,” Prosus said.

PayU processed $90 billion of TPV (total payment value), with payment revenue up 10% 6%to $577 million and an EBITDA of $12 million. Its growth was mainly driven by lower-value UPI-heavy segments, including quick commerce and bill payments, and a reduction in cost per transaction.

The payments segment of PayU accounted for 74% of total revenue. Prosus has attributed the credit business of PayU for driving business towards profitability with an operational profit of $6 million.

“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 EBITDA to $12 million,” Prosus said.

PayU’s higher-margin VAS and software-as-a-service (SaaS) profitability accounted for 33% of payments revenue.

“PayU leveraged the Mindgate acquisition to build a proprietary third-party application provider stack and person-to-merchant switch. This improved transaction success rate is expected to unlock new UPI-based services for its merchant base,” Prosus said.

Through Mindgate and Wibmo, PayU helps banks in India process one in every two UPI transactions and three of every four credit card transactions.

In credit, PayU’s revenue grew 19% (26% in local currency) to $204 million and pivoted to profitability with an EBITDA of $6 million in FY26 compared to a loss of $28 million in FY25.

Prosus said that PayU has plans to launch generative AI-native products across payments, SaaS and credit. It holds a 16.24% stake in travel firm Ixigo, 23.52% stake in Rapido and 22.31% in Swiggy.

The investment firm said that PayU has benefited from intertwining with its portfolio company in India. PayU has increased its processing of Swiggy’s GMV (gross merchandise value) by 5 times year-on-year, and its collaboration with Meesho led to a more than 100%% increase in loan originations for both consumers and merchants within nine months.

Additionally, PayU’s handling of ixigo’s unified payments interface (UPI) volumes grew by 50% in only one month, it said.

“Our strategic objective remains to unlock substantial value in the everyday economies of our large-scale regional lifestyle e-commerce ecosystems spanning LatAm, India and Europe,” Prosus said.