Source-led article
Indian Startups Show Strong Profitability and Revenue Growth in FY26
Indian tech startups demonstrated a significant leap towards profitability and robust revenue growth in Fiscal Year 2026 (FY26), according to a new financial tracker by Inc42. The report, which analyzed 24 new-age tech companies, found that 17 of them, approximately 70%, reported profits during the fiscal year, collectively generating a net profit of ₹5,657.3 crore. This marks a notable shift in the ecosystem, with a growing number of companies adjusting to new funding realities through cost rationalisation.
The overall operating revenue for these 24 companies reached ₹1.71 lakh crore in FY26, a substantial 54% increase from ₹1.11 lakh crore in FY25. This growth signals a maturing ecosystem, further evidenced by 22 new-age tech companies making their public market debut in FY26, compared to 13 in the previous fiscal year.
Key Financial Highlights of FY26
The Inc42 FY26 Financial Tracker provides a detailed look into the performance of individual companies. While the overall trend points to increased profitability, the picture is not uniform across all startups. The 17 profitable startups offset losses from the remaining seven, which posted cumulative losses of ₹8,168.7 crore, indicating that sustainable profitability remains a goal for a segment of the ecosystem.
Several prominent startups showcased strong individual performances. Ather Energy, the EV major, successfully trimmed its net loss by 36% to ₹517.2 crore, while its operating revenue grew by 62.8%. Coworking space provider Awfis saw a marginal uptick in profit to ₹70.8 crore, with a 24% increase in operating revenue. Omnichannel jewellery brand BlueStone reported its first full year of profitability, turning a net loss of ₹221.8 crore in FY25 into a net profit of ₹13.2 crore in FY26.
Mixed Results Across Sectors
The financial tracker also revealed a mixed bag of results for other key players. Auto classifieds platform CarTrade’s profit surged by 67.6% to ₹243.5 crore, accompanied by a 21.5% increase in operating revenue. Conversely, logistics major Delhivery experienced a nearly 6% contraction in net profit to ₹152.5 crore, despite a 17.6% jump in operating revenue.
Online travel aggregator EaseMyTrip slipped into the red, posting a net loss of ₹47.5 crore compared to a profit in the previous year, with an 8.8% decline in operating revenue. Zomato parent Eternal, despite a 168.6% increase in operating revenue driven by Blinkit, saw its net profit decline by 31% to ₹366 crore due to continued investments.
Key Facts
| Metric | FY26 Performance |
|---|---|
| Profitable Startups | 17 out of 24 (approx. 70%) |
| Cumulative Net Profit | ₹5,657.3 Cr (for profitable startups) |
| Total Operating Revenue | ₹1.71 Lakh Cr (54% increase from FY25) |
| Public Market Debuts | 22 new-age tech companies |
Growth in Fintech and Consumer Brands
Fintech platform Groww reported a significant milestone, with its net profit crossing the ₹2,000 crore mark, surging by 14% to ₹2,083 crore. Its operating revenue grew by 19%. Mamaearth parent Honasa Consumer also demonstrated strong growth, with its net profit increasing by 175.4% to ₹200.2 crore, and operating revenue growing by 15.7%. The company attributed this growth to its younger brands. Eyewear giant Lenskart also crossed the ₹500 crore mark in profits.
Implications for the Indian Startup Ecosystem
These findings are crucial for India’s tech and startup community. The overall trend of increased profitability and revenue growth, alongside a higher number of public market debuts, suggests a shift towards more sustainable business models. For investors, entrepreneurs, and policymakers, the Inc42 FY26 Financial Tracker offers valuable insights into the health and direction of the Indian startup ecosystem. The tracker, which will be updated periodically, serves as an important resource for monitoring the financial performance of new-age tech companies in India.