The National Payments Corporation of India (NPCI) reported a 32.4% decline in its consolidated net profit to ₹989.4 crore for the financial year ended March 2026, down from ₹1,463.2 crore in FY25. This drop came despite a 21.8% increase in revenue from operations to ₹4,240 crore, according to NPCI’s annual report published by inc42.com.
NPCI’s pre-tax profit rose 5.4% to ₹1,888 crore in FY26 from ₹1,791.8 crore the previous year. However, a sharp increase in tax expenses offset this growth, with total tax outgo surging 173.4% to ₹898.5 crore from ₹328.7 crore. The rise included a 19% increase in current tax to ₹568 crore and deferred tax expenses of ₹330.7 crore, compared to a deferred tax credit of ₹11.1 crore in FY25. The earlier year had also benefited from a ₹137.6 crore prior-year tax adjustment.
Revenue from NPCI’s core payment services, which make up 88.1% of its operational income, grew 16.3% to ₹3,735.8 crore from ₹3,212 crore. Other income streams such as network income, implementation services, certification income, and fetching fees contributed to a total income rise of 20% to ₹4,872.6 crore. NPCI operates as a not-for-profit entity under Section 8 of the Companies Act, using the term “surplus” instead of profit in its financial statements.
NPCI’s financial results highlight the impact of increased tax liabilities on its bottom line despite operational growth. The company’s annual report for FY26, released this week, provides detailed insights into its revenue composition and tax expenses.