Archive · 19 Aug 2026
Amazon India Marketplace Reports First Operating Profit in FY26
Amazon’s marketplace business in India made its first operating profit after accounting for depreciation in FY26.
It earned Rs 172 crore at this level.
Its total income grew to Rs 35,574 crore.
Advertising and fees from larger sellers helped drive much of the growth.
Amazon also lowered several fees for sellers, especially those selling cheaper products.
The company says these changes can reduce sellers’ total selling fees by up to 70%.
Most of the latest fee cuts began near the end of FY26, so their full effect is expected in FY27.
At the same time, Amazon is spending more on delivery facilities, workers and quick commerce.
Its Amazon Now service is expanding and competing with several other delivery platforms.
Amazon Seller Services posted a Rs 172 crore profit before interest and tax in FY26, its first operating profit after depreciation.
Its total income rose 15.5% to Rs 35,574 crore, while EBITDA increased 19% to Rs 3,640 crore.
The Stores business contributed 68% of incremental revenue, led by premium-seller fees and advertising.
Amazon expanded zero-referral-fee policies and other fee cuts, particularly for smaller sellers and lower-priced products.
Amazon is investing over Rs 2,800 crore in India in 2026 and expanding Amazon Now as competition in quick commerce intensifies.
- Who
- Amazon Seller Services, which operates Amazon’s marketplace in India.
- What
- Reported a Rs 172 crore profit before interest and tax in FY26, alongside higher income and EBITDA.
- When
- In FY26; the article also refers to fee changes announced from April last year and in March this year.
- Where
- India.
- Why
- Revenue growth outpaced expense growth, while advertising and premium third-party seller fees increased; fee reductions were introduced to support seller growth and marketplace activity.
Seller Fee Reductions
Profitability and Expansion
Impact of lower marketplace fees
Seller Fee Reductions
Amazon’s fee cuts reduce costs for sellers, especially small sellers and merchants of lower-priced products. Amazon said sellers could save up to 70% on total selling fees, and that new seller sign-ups rose close to 50% after the first round.
Profitability and Expansion
The reductions also limited growth in standard third-party seller fees, which rose only 3.9%, and reduced shipping revenue by Rs 88 crore. The full effect of the latest cuts is expected to appear in FY27.
Growth strategy
Seller Fee Reductions
Amazon is expanding its marketplace and Amazon Now service, with more fulfilment centres and a broader selection intended to support faster deliveries and seller activity.
Profitability and Expansion
The company is increasing spending even as it reports its first operating profit. Amazon faces direct competition in quick commerce from Blinkit, Instamart, Zepto and Flipkart Minutes, while its infrastructure expansion may affect future costs.
- FY26 PBIT
- Rs 172 crore
- FY26 total income
- Rs 35,574 crore, up 15.5% from FY25
- FY26 EBITDA
- Rs 3,640 crore, up 19% from Rs 3,047 crore
- FY26 EBITDA margin
- 10.41%, up from 10.03%
- Stores revenue
- Rs 28,795 crore, up 12.6%
- FY25 net loss
- Rs 374.3 crore, down from Rs 3,469.5 crore in FY24
- India investment in 2026
- More than Rs 2,800 crore for fulfilment, last-mile infrastructure and worker welfare