NPCI’s FY26 Profit Drops 32% YoY To ₹989 Cr As Tax Outgo, BHIM Loss Surge

The National Payments Corporation of India (NPCI) reported a significant drop in its FY26 profit, declining by 32.4% year-over-year (YoY) to ₹989.4 crore in the financial year ended March 2026, down from ₹1,463.2 crore in FY25. This decline was primarily attributed to a sharp increase in tax expenses, which offset growth in its pre-tax profit.

NPCI's revenue from operations increased by 21.8% to ₹4,240 crore in FY26, compared to ₹3,480.8 crore in the previous fiscal year. Within this, payment services, which account for 88.1% of the revenue, grew by 16.3% to ₹3,735.8 crore. The surge in tax expenses, up 173.4% to ₹898.5 crore, was the main driver behind the reduced net profit.

Despite this, NPCI's profit before tax rose by 5.4% to ₹1,888 crore. The company's total expenses grew by 31.5% to ₹2,984.6 crore, with marketing expenses accounting for nearly half of these costs, increasing by 27.3% to ₹1,420.3 crore. This included marketing and branding costs, product incentives, cashback expenses, and payments to banks for issuing RuPay cards.