PayU India has reported a strong performance for the first half of FY26, marking a significant turnaround with profitability achieved in the second quarter. The company recorded 20 per cent year-on-year revenue growth, while adjusted EBITDA improved from –6 per cent in the previous year to breakeven, turning positive in Q2.
For the six months ended September 2025, PayU India’s revenue increased to $397 million, compared to $331 million during the same period last year. The payments business contributed $301 million, registering 20 per cent growth, supported by a 55 per cent increase in transaction volume driven largely by higher UPI usage. High-margin SaaS and value-added services, including fraud prevention, authentication, and security tools, accounted for 34 per cent of payments revenue.
PayU’s credit business also showed momentum, growing 17 per cent to reach $96 million in revenue. The company originated $651 million in loans under its asset-light embedded lending model. Unit economics improved during the period, with EBITDA rising from –20 per cent to –3 per cent, reaching breakeven in Q2.
During the half year, the company increased its stake to 70.7 per cent in Mindgate, a key payments infrastructure provider that supports UPI operations for major banks, including SBI and HDFC Bank, processing around 10 billion real-time transactions per month. PayU also launched UPINXT, an issuing and acquiring stack for banks and merchants, and expanded partnerships with platforms such as Swiggy, Meesho, and other SMB ecosystems.
PayU further received integrated authorisation from the Reserve Bank of India to operate as a payment aggregator across online, offline, and cross-border transactions under the Payment and Settlement Systems Act.
The company stated that its improved financial performance, expanding product suite, and strengthened partnerships will support its continued role in India’s digital payments and embedded finance sector.
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