The National Payments Corporation of India (NPCI) reported a 32% decline in net profit to Rs 989.4 crore for the financial year 2025-26, according to its annual financial statement. Despite the profit drop, NPCI’s revenue from operations increased 22% to Rs 4,240 crore in FY26, up from Rs 3,480.8 crore in FY25, driven primarily by its payment services segment.
NPCI’s revenue growth was largely fueled by income from payment services, which accounted for Rs 3,735.8 crore or 88% of its total operating revenue in FY26, up from Rs 3,212 crore in the previous year. However, the company faced increased costs due to higher marketing expenses and a surge in AI infrastructure-related service costs, which weighed on its bottom line. NPCI operates as a not-for-profit entity and refers to profits as surplus.
Among its subsidiaries, NPCI BHIM Services Limited (NBSL) saw its net loss widen nearly sixfold to Rs 390.6 crore in FY26, compared to Rs 68.1 crore in FY25, despite generating a turnover of Rs 27.8 crore. NPCI’s other subsidiaries include NPCI International Payments Ltd (NIPL) and NPCI Bharat Billpay Ltd (NBBL). The losses at NPCI BHIM reflect the challenges in scaling its digital payment offerings amid rising operational costs.
NPCI’s financial disclosures for FY26 highlight the growing pressures on payment infrastructure providers in India, with rising costs linked to AI infrastructure and marketing. The company’s next financial update will be closely watched for indications of how it manages these expenses while supporting the expanding Unified Payments Interface (UPI) ecosystem.