NPCI's profit declines 32% to Rs 989 crore as BHIM app losses widen

The National Payments Corporation of India (NPCI), the entity operating India's Unified Payments Interface (UPI), saw its net surplus decline by 32% to Rs 989.4 crore (approximately $11.8 million USD) for the financial year 2025-26. The reduction in surplus is attributed to higher marketing expenditures and increased server costs driven by demand for AI infrastructure.

Despite the surplus decline, NPCI's operating revenue grew by 22% to Rs 4,240 crore in FY26, up from Rs 3,480.8 crore in the previous year. As a not-for-profit organization, NPCI's income is termed as surplus. The bulk of this revenue, 88%, stemmed from payment and transaction services, amounting to Rs 3,735.8 crore.

Marketing expenses emerged as the largest cost center, accounting for 47% of total expenses and rising 27% to Rs 1,420.3 crore. This increase was driven by product incentives and cashback campaigns aimed at promoting digital transactions, alongside marketing for RuPay cards and sponsorships. Operating expenses also rose by nearly 39% to Rs 291.4 crore, encompassing costs for network, IT equipment, and data center operations, with data center rental costs seeing a significant 20-fold increase.

Meanwhile, NPCI BHIM Services Limited (NBSL), a subsidiary established in June 2024 to grow the BHIM UPI app's market share, experienced a substantial increase in losses. NBSL's loss widened nearly sixfold to Rs 390.6 crore in FY26, compared to Rs 68.1 crore in the prior fiscal year. The company recorded a turnover of Rs 27.8 crore.

Other subsidiaries reported varied results. NPCI Bharat Billpay, managing the Bharat Bill Payment System, achieved a profit of Rs 31.5 crore on a turnover of Rs 161 crore. NPCI International Payments, focused on international expansion of UPI and RuPay, posted a loss of Rs 19.4 crore on a turnover of Rs 83 crore.