Navi Technologies’ consolidated net loss widened nearly fourfold to ₹466 crore in FY26 from ₹126 crore a year earlier, reflecting increased expenditure on its Unified Payments Interface business and other initiatives intended to diversify revenue beyond lending. The Bengaluru-headquartered financial-technology group nevertheless reported higher operating income and said it reached break-even in the March quarter, while maintaining its expectation of returning to profitability during FY27.
Revenue from operations increased 16% to ₹2,982 crore, while total income rose 15% to ₹3,091 crore. Cofounder and chief financial officer Ankit Agarwal said the March-quarter break-even covered the group’s operating costs without relying on one-off gains or reductions in investment. Unsecured loans remain the principal earnings contributor at Navi Finserv, its profitable lending arm, and are expected to remain the primary driver of the group’s financial performance during FY27.
The group is using UPI principally as a customer-acquisition channel, with lending, insurance and investment products forming its monetisation layer. Most of Navi’s marketing expenditure is now directed towards payments. Its share of consumer UPI transactions almost doubled to 4% in July, making it the fourth-largest application in the segment behind PhonePe, Google Pay and Paytm.
Navi is also working to improve the standalone economics of its payments business. Management said incremental customer acquisition and retention costs have declined over recent months, while revenue per active user from bill payments, mobile recharges, gift cards, advertising and other services has increased month on month. The objective is to recover a substantial part of payments-related acquisition expenditure through those revenue streams even before loans or insurance products are cross-sold.
Beyond payments and lending, Navi recorded approximately ₹200 crore in gross insurance premium during FY26, while assets managed by its mutual-fund business reached about ₹9,000 crore. Credit delivered through UPI represents another potential product line.
The regulatory framework for merchant payments could create an additional revenue stream. Parliament has passed legislation amending the digital-payments law to permit merchant discount rate charges. The government has separately considered a charge of five to seven basis points on UPI transactions involving large merchants, while retaining free transfers for individuals and small merchants. Agarwal said it was too early to determine how much of any such fee would accrue to consumer platforms.
Navi has not commented on discussions concerning fresh external capital or a possible public offering. The group abandoned an earlier ₹3,350 crore IPO in 2022 despite securing regulatory approval. Its current financial trajectory places the emphasis on whether UPI-led acquisition can produce lower costs, higher engagement and sufficient cross-selling to support the projected FY27 turnaround.
