Amazon India’s marketplace business, Amazon Seller Services, reported a 15% increase in operating revenue to ₹34,966.8 crore in financial year 2025-26, according to regulatory filings with the Registrar of Companies (RoC). The growth was slower than the 19% increase recorded in FY25, but the business continued to improve its financial performance as Amazon focused on strengthening marketplace economics and reducing seller fees.
The company’s net loss narrowed to ₹389.9 crore in FY26 from ₹408 crore a year earlier, a reduction of about 4.4%. At the operating level, Amazon Seller Services also reported its first positive profit before interest and tax (PBIT), at about ₹172 crore, marking another important step toward profitability for Amazon’s India marketplace operations.
Amazon India Marketplace Revenue Crosses ₹34,900 Crore
Amazon Seller Services’ operating revenue rose from about ₹30,368 crore in FY25 to ₹34,966.8 crore in FY26. The ₹4,599.8-crore increase represents growth of roughly 15.1% during the year.
The business generates most of its revenue from services provided to third-party sellers, subscriptions including Amazon Prime, advertising and marketing services, and other marketplace-related activities. It also earns royalty income from licensing digital content to related parties.
Amazon Seller Services Financial Snapshot
| Metric | FY25 | FY26 | Change |
|---|---|---|---|
| Operating revenue | ₹30,368.3 crore | ₹34,966.8 crore | +15.1% |
| Net loss | ₹408.2 crore | ₹389.9 crore | -4.5% |
| PBIT | Negative | ₹172 crore | Turned positive |
| Total income | ₹30,805 crore | ₹35,574 crore | +15.5% |
| Revenue growth | 19% | 15% | Slower growth |
The distinction between operating revenue and total income is important. The Economic Times report puts operating revenue at ₹34,966.8 crore, while total income reported from statutory filings was about ₹35,574 crore.
Revenue Growth Slows From 19% To 15%
Amazon’s India marketplace continued to grow, but its pace moderated in FY26.
Operating revenue had increased 19% in FY25. The 15% increase in FY26 therefore represents a four-percentage-point slowdown in the growth rate.
Amazon India Marketplace Revenue Growth
AMAZON SELLER SERVICES — REVENUE GROWTH
FY25
+19% ███████████████████
FY26
+15% ███████████████
Growth slowdown
4 percentage points
The moderation comes as India’s e-commerce market becomes increasingly competitive. Amazon faces competition from Walmart-backed Flipkart, Meesho and a growing quick-commerce ecosystem, while consumers are becoming increasingly accustomed to fast delivery and discount-led shopping.
Despite slower growth, Amazon’s ability to increase revenue while narrowing losses indicates that the company is placing greater emphasis on the economics of each transaction rather than pursuing growth at any cost.
Amazon India Moves Into Operating Profit
One of the most significant developments in FY26 was Amazon Seller Services reporting its first positive PBIT.
The company recorded approximately ₹172 crore in profit before interest and tax, according to people familiar with the results. In FY25, the business had already achieved positive EBITDA for the first time.
This progression suggests that Amazon’s marketplace business is moving through several stages of financial improvement.
Profitability Progression
| Stage | Development |
|---|---|
| Earlier years | Heavy investment and operating losses |
| FY25 | First positive EBITDA |
| FY26 | First positive PBIT of about ₹172 crore |
| FY26 | Net loss still remains at ₹389.9 crore |
| Next target | Sustainable net profitability |
PBIT measures operating profit before interest and tax, while net profit also reflects financing costs, taxes and other items. As a result, a company can report positive PBIT while still recording a net loss.
Amazon India’s Profitability Journey
AMAZON INDIA MARKETPLACE
Earlier
Operating Loss
↓
FY25
Positive EBITDA
↓
FY26
₹172 Cr Positive PBIT
↓
FY26
₹389.9 Cr Net Loss
↓
Next Goal
Net Profitability
The movement toward positive operating profit is significant because it indicates that Amazon is improving the underlying economics of its marketplace even though the final bottom line remains negative.
Net Loss Narrows To ₹389.9 Crore
Amazon Seller Services’ net loss declined to ₹389.9 crore in FY26 from ₹408.2 crore in FY25.
That represents an improvement of approximately ₹18.3 crore, or 4.5%.
The reduction is modest compared with the company’s revenue growth, but it continues the broader trend of narrowing losses.
Revenue Vs Loss
FY25
Revenue ₹30,368 Cr
Net Loss ₹408 Cr
FY26
Revenue ₹34,967 Cr
Net Loss ₹390 Cr
The numbers show that the marketplace added nearly ₹4,600 crore of operating revenue while reducing its annual loss.
However, the relatively small decline in net loss also shows that Amazon still has costs that prevent the business from translating its operating improvement into bottom-line profitability.
Why Amazon Is Focusing On Seller Fees
People familiar with the company’s performance said the revenue growth came amid Amazon’s efforts to remove seller fees. Seller fees are a major source of marketplace economics because Amazon provides its platform, logistics, advertising and other services to third-party merchants.
Changes to those fees can therefore affect both seller participation and Amazon’s revenue.
The strategy involves balancing two competing objectives: keeping the platform attractive enough for sellers while maintaining sufficient revenue and margins to support the marketplace’s infrastructure.
Amazon Marketplace Revenue Model
| Revenue Source | Role In Business |
|---|---|
| Third-party seller services | Core marketplace revenue |
| Amazon Prime subscriptions | Recurring consumer revenue |
| Advertising | Monetisation of marketplace traffic |
| Marketing support | Services for sellers and affiliates |
| Digital-content royalties | Additional related-party revenue |
Amazon’s marketplace model is therefore broader than simply charging sellers a commission on every product sold.
Advertising Is Becoming More Important
Advertising has become an increasingly important part of the economics of online marketplaces.
Amazon can monetise traffic generated by shoppers by selling sponsored product placements and other advertising services to sellers and brands. This can potentially improve the economics of the marketplace without requiring Amazon to take on inventory risk for third-party products.
For sellers, however, advertising creates another expense on top of product, logistics and marketplace costs.
The balance between seller fees and advertising costs could therefore become increasingly important as Amazon attempts to improve profitability while keeping its marketplace competitive.
Amazon India Faces Intense Competition
Amazon operates in one of the world’s fastest-growing e-commerce markets, but the competitive environment has changed considerably.
Flipkart remains a major rival in online retail, while Meesho has expanded rapidly with a value-focused marketplace model. Quick-commerce companies such as Blinkit, Zepto and Swiggy Instamart have also changed consumer expectations around delivery speed, particularly for groceries and everyday products.
India’s Competitive E-Commerce Landscape
| Competitor / Segment | Key Competitive Focus |
|---|---|
| Amazon | Broad marketplace + Prime ecosystem |
| Flipkart | Large-scale general e-commerce |
| Meesho | Value-focused marketplace |
| Blinkit | Quick commerce |
| Zepto | Quick commerce |
| Swiggy Instamart | Quick commerce |
Amazon’s challenge is therefore no longer simply to expand its customer base. It must also maintain competitive prices, delivery speeds and selection while improving profitability.
Amazon Is Investing Beyond Traditional E-Commerce
Amazon’s broader India strategy also extends beyond its marketplace business.
The company is investing in areas including cloud computing, artificial intelligence, logistics and quick commerce. Amazon has said it plans to invest $48 billion in India by 2030, according to reporting on its broader India operations.
This means the marketplace’s improving financial performance is taking place within a much larger investment programme.
Amazon’s India Business Ecosystem
AMAZON INDIA
│
┌──────────────┼──────────────┐
↓ ↓ ↓
E-Commerce AWS AI
│ │ │
↓ ↓ ↓
Marketplace Cloud Infrastructure
│
↓
Advertising
│
↓
Logistics
│
↓
Quick Commerce
The marketplace remains central to Amazon’s consumer ecosystem, but the company is increasingly building multiple revenue and growth engines in India.
FY26 Results Show Better Unit Economics
The combination of revenue growth, narrowing losses and positive PBIT points toward improving unit economics.
Unit economics refer to how much a company earns or loses from individual customers, orders or transactions after considering the costs directly associated with serving them.
Amazon’s latest results suggest the company is getting closer to a model in which marketplace growth can translate into operating profit.
However, the business still has to demonstrate that this improvement can be sustained as competition increases and Amazon continues investing in logistics, technology and customer acquisition.
Key Financial Signals
| Signal | FY26 Result | Interpretation |
|---|---|---|
| Revenue growth | +15.1% | Marketplace continues expanding |
| PBIT | ₹172 crore | First operating-level profit |
| Net loss | ₹389.9 crore | Bottom line remains negative |
| Loss change | -4.5% | Financial improvement |
| Revenue growth slowdown | 19% → 15% | Growth has moderated |
| Total income | ₹35,574 crore | Overall income increased |
Why The PBIT Milestone Matters
The first positive PBIT is arguably more important than the modest decline in net loss.
A positive PBIT indicates that the core business generated more operating income than operating expenses before interest and taxes. This suggests the marketplace itself may have reached a level of scale where its underlying operations can generate profit.
The remaining net loss could therefore be linked to costs below the operating-profit line and other financial factors.
If Amazon can continue increasing revenue while maintaining positive PBIT, the gap between operating profitability and net profitability could gradually narrow.
Amazon India Is Becoming More Focused On Profitability
The FY26 numbers reflect a broader change in India’s e-commerce industry.
For years, online marketplaces prioritised customer acquisition, seller expansion, discounts and logistics scale. As the market matures, investors and companies are placing greater emphasis on profitability, cash generation and sustainable growth.
Amazon’s latest results fit that pattern.
The company grew its marketplace revenue by 15%, but the more important development was the move into positive PBIT while reducing the net loss.
What Amazon’s FY26 Numbers Mean For Sellers
For sellers, Amazon’s efforts to adjust fees could have mixed implications.
Lower seller fees can improve seller economics and potentially attract more merchants to the platform. A larger selection of products can in turn improve consumer choice and increase marketplace activity.
But Amazon also needs to monetise its platform. If seller fees decline, the company could rely more heavily on advertising, subscriptions and other services to maintain revenue growth.
This could shift the economics of selling on Amazon without necessarily reducing the total cost of doing business for merchants.
The Bigger Picture
Amazon Seller Services’ FY26 results show a marketplace business that is gradually moving from aggressive expansion toward stronger financial discipline. Operating revenue reached ₹34,966.8 crore, up 15%, while the net loss narrowed to ₹389.9 crore. More importantly, the business reported its first positive PBIT of about ₹172 crore, suggesting that the underlying marketplace operations are moving closer to sustainable profitability.
The results also highlight the changing nature of India’s e-commerce market. Amazon continues to grow, but the slower revenue growth compared with FY25 indicates that scale alone is becoming less important. Competition from Flipkart, Meesho and quick-commerce companies means Amazon needs to balance selection, pricing, delivery and seller economics while improving margins. Its FY26 performance suggests that balance is beginning to take shape.
Looking Ahead
The next challenge for Amazon Seller Services will be converting positive operating profitability into sustained net profitability without sacrificing marketplace growth. The company will need to manage seller fees carefully, expand advertising and subscription revenue, and improve logistics and fulfilment efficiency. At the same time, its broader investments in AI, cloud computing and newer commerce formats could create additional opportunities but also increase near-term spending.
If Amazon can maintain double-digit marketplace growth while keeping PBIT positive and gradually eliminating its net loss, its India e-commerce business could enter a more mature phase. The FY26 results represent an important step in that direction, but the next few financial years will determine whether the improvement is structural or simply the result of temporary cost and investment changes.
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