NPCI FY26 revenue up 22% to Rs 4,240 crore, profit drops

The National Payments Corporation of India (NPCI), which operates instant payments system unified payments interface (UPI),  recorded a 22% increase in revenue from operations to Rs 4,240 crore in the fiscal year ended March 31, 2026, from Rs 3,481 crore in FY25, according to its consolidated financial statements.

NPCI’s surplus (profit) declined 32% to Rs 991 crore in FY26 from Rs 1,461 crore in the previous fiscal, impacted by higher marketing and product incentive expenses, along with a deferred tax expense during the year.

Payment services remained its largest revenue contributor, accounting for 88% of operating revenue and generating Rs 3,736 crore in FY26.

Total expenses of NPCI grew 32% to Rs 2,985 crore in FY26 as compared to Rs 2,270 crore in FY25. Marketing and product incentive expenses remained the largest cost component, rising 27% to Rs 1,420 crore from Rs 1,116 crore a year earlier. The increase was driven by higher spending on product incentives, cashbacks, sponsorships, advertising, and payments related to RuPay cards.

Employee benefit expenses jumped 22% to Rs 534 crore in FY26 from Rs 438 crore in the previous financial year. Depreciation and amortisation costs also rose 40% to Rs 408 crore, while operating expenses increased 39% to Rs 291 crore due to higher network, IT infrastructure, and data centre-related costs.

Established in 2008 by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), NPCI operates retail payment systems including UPI, IMPS, RuPay, BHIM, NACH, AePS, FASTag, and BBPS.