Two-Thirds of 98 Tracked Indian Startups Report FY26 Profits as Revenue Reaches ₹3.22 Lakh Crore

A new FY2025-26 financial tracker covering 98 Indian startups and new-age technology companies shows a marked improvement in profitability across a large section of the ecosystem. Of the companies included in the tracker, 65 reported profits in FY26, meaning roughly 67 per cent of the sample ended the year in the black.

The same group generated approximately ₹3.22 lakh crore in operating revenue, up 44.26 per cent from ₹2.23 lakh crore in FY25. The figures point to stronger scale and improving financial discipline across many startups, although profitability remains uneven and the tracker does not represent every startup operating in India.

65 of 98 Companies Report Profits

The tracker shows that 65 companies were profitable in FY26, while 33 remained loss-making.

The profitable companies together generated approximately ₹14,511.8 crore in cumulative net profit. By contrast, the 33 loss-making companies reported combined losses of around ₹21,459.4 crore.

This means the aggregate losses of the loss-making group remained larger than the combined profits generated by the profitable companies. The data therefore shows an improving ecosystem, but not one in which profitability challenges have disappeared.

Operating Revenue Rises 44.26 Per Cent

The 98 companies generated combined operating revenue of ₹3.22 lakh crore in FY26, compared with approximately ₹2.23 lakh crore in FY25.

The increase of more than 44 per cent reflects continued expansion across areas including ecommerce, fintech, logistics, software, electric mobility, food delivery, consumer brands and enterprise technology.

Revenue growth has been accompanied by a wider push towards cost control as startups adjust to a funding environment that places greater emphasis on margins, cash efficiency and sustainable business models.

Several Startups Move Into Profit

The tracker highlights a number of companies that either became profitable or significantly improved their bottom lines during the year.

Media software company Amagi reported a profit of ₹71.7 crore in FY26 after posting a loss of ₹68.7 crore in the previous year. Its operating revenue increased to ₹1,505.6 crore.

B2B construction-material platform ArisInfra Solutions reported net profit of ₹60.3 crore, compared with ₹6 crore in FY25, while operating revenue rose to more than ₹1,067 crore.

Furniture and appliance rental platform RentoMojo recorded profit after tax of ₹104.2 crore, more than doubling from the previous year.

Porter and PRISM Record Strong Profit Growth

Logistics platform Porter reported one of the stronger profit improvements among the companies covered by the tracker.

Its FY26 net profit increased to approximately ₹229 crore, compared with ₹55.3 crore in FY25. Operating revenue rose 54 per cent to around ₹6,650 crore.

Hospitality company PRISM, the parent entity associated with OYO, reported net profit of approximately ₹994.2 crore, compared with ₹244.8 crore in the previous financial year. Its operating revenue increased to ₹9,358 crore.

The tracker notes that PRISM’s FY26 result also included a tax gain, meaning headline profit growth should be viewed alongside the underlying operating performance.

Some Large Startups Continue to Report Heavy Losses

The profitability trend remains uneven, particularly among companies still spending heavily on expansion.

Swiggy reported a net loss of approximately ₹4,154 crore in FY26, up from ₹3,117 crore in FY25, even as operating revenue rose substantially to ₹23,053 crore.

Zepto also remained deeply loss-making, with its FY26 net loss reported at approximately ₹5,905 crore despite strong revenue growth.

Manufacturing platform Zetwerk reported a net loss of roughly ₹1,606 crore, although a significant portion of the increase was linked to exceptional and impairment-related items.

These cases show that rapid revenue growth does not automatically translate into profitability, particularly when companies are investing aggressively in market expansion, infrastructure or new business segments.

Cost Discipline Is Becoming More Important

The changing financial profile of Indian startups reflects a shift that has been underway since the funding slowdown earlier in the decade.

During periods of abundant capital, many high-growth companies prioritised customer acquisition, market share and expansion ahead of profitability. More recently, investors have placed greater weight on cash generation, unit economics and operating efficiency.

As a result, companies across multiple sectors have reduced discretionary spending, rationalised workforces, narrowed expansion plans and focused more closely on businesses capable of producing sustainable margins.

The latest FY26 numbers suggest that this change is beginning to appear more clearly in reported financial performance.

Public Markets Are Also Reshaping the Startup Ecosystem

The tracker also places the financial improvement against a wider shift towards public-market participation.

According to the analysis, 22 new-age technology companies made their stock-market debut in FY26, compared with 13 in FY25.

Moving towards an IPO exposes companies to stricter disclosure requirements and greater scrutiny of revenue quality, margins, cash flow and governance. This can create additional pressure for startups to demonstrate sustainable financial performance rather than relying primarily on private-market valuations.

Revenue Growth Does Not Tell the Entire Story

The ₹3.22 lakh crore revenue figure is substantial, but the overall financial picture is more nuanced.

The 65 profitable companies collectively generated ₹14,511.8 crore in profits, while the loss-making group recorded cumulative losses exceeding ₹21,000 crore. The difference illustrates how a relatively small number of heavily loss-making companies can outweigh profits generated across a much larger profitable group.

It also reinforces the importance of looking beyond topline growth when assessing the health of the startup ecosystem. Cash generation, operating margins, debt, exceptional costs and the quality of earnings all matter alongside revenue.

Tracker Represents a Sample, Not the Entire Indian Startup Ecosystem

The 98 companies included in the FY26 financial tracker represent only a portion of India’s much larger startup ecosystem.

The dataset is also designed as a running tracker and will continue to be updated as more companies disclose their FY26 financial results.

The 67 per cent profitability figure therefore should not be interpreted as meaning that two-thirds of all Indian startups are profitable. It applies specifically to the companies included in the tracker at the time of publication.

That distinction is particularly important because the sample contains many larger and more mature startups that are more likely to have reached a stage where sustainable profitability is achievable.

Indian Startups Enter a More Mature Financial Phase

The FY26 data nevertheless shows a clear structural change within an important segment of India’s startup economy. More companies are reaching profitability, operating revenue is expanding rapidly and public-market participation is increasing.

At the same time, large cumulative losses at several high-growth companies demonstrate that the transition remains incomplete.

The emerging picture is of a startup ecosystem gradually moving beyond an era dominated by valuation growth towards one where scale, margins and financial resilience increasingly determine long-term strength. That shift can provide a stronger foundation for the next phase of Indian entrepreneurship as more companies combine technological innovation with sustainable business performance.

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References

Inc42 — FY26 Financial Tracker: Tracking The Financial Performance Of Indian Startups, published October 3, 2026.

Inc42 — Financial disclosures compiled for 98 Indian startups and new-age technology companies, covering operating revenue, profit or loss and expenses for FY2025-26.

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