Amazon India Seller Services Posts First Operating Profit in FY26

Amazon Seller Services (ASSPL), the entity managing Amazon’s marketplace operations in India, has posted its first profit before interest and tax (PBIT) of Rs 172 crore in FY26. This significant milestone marks its first operating profit after accounting for depreciation, following an Ebitda-positive status achieved in FY25.

Financial Turnaround Signals Growth

The company’s Ebitda saw a notable 19% increase, reaching Rs 3,640 crore in FY26 from Rs 3,047 crore the previous year. This performance pushed the Ebitda margin up by 37 basis points to 10.41%, indicating improved operational efficiency.

• PBIT in FY26: Rs 172 crore
• Ebitda in FY26: Rs 3,640 crore (up 19%)
• Ebitda Margin: 10.41% (up 37 basis points)
• Total Income: Rs 35,574 crore (up 15.5%)

Total income for ASSPL grew by 15.5% to Rs 35,574 crore in FY26, surpassing the 14.8% growth in total expenses for the second consecutive year. The Stores business emerged as a primary driver, contributing 68% of the year’s incremental revenue.

Strategic Fee Reductions Drive Ecosystem Expansion

Within the Stores segment, revenue climbed by 12.6% to Rs 28,795 crore, an increase of Rs 3,233 crore over FY25. Premium third-party (P3P) fees, levied on large sellers, surged by 23%, adding Rs 1,512 crore and becoming the single largest contributor to this growth.

Advertising revenue also experienced substantial growth, rising by 19.9% and contributing an additional Rs 1,497 crore. Conversely, standard third-party (S3P) fees from small sellers saw only marginal growth of 3.9%, or Rs 412 crore, a direct consequence of strategic fee investments.

• April last year: Eliminated referral fees for products under Rs 300 across over 135 categories (approximately 12 million listings).
• April last year: Reduced weight handling fees for items under 1 kg and cut closing fees for self-shipped orders.
• March this year: Extended zero referral fees to products under Rs 1,000 across over 1,800 categories (approximately 125 million listings).
• March this year: Lowered referral fees in high-demand categories priced above Rs 1,000 and reduced Easy Ship fees for products under Rs 300.

These fee reductions align with a broader market trend among Indian e-commerce platforms, designed to attract and retain sellers. Amazon claims these changes could result in savings of up to 70% on total selling fees for sellers, leading to a nearly 50% increase in new seller sign-ups after the initial round of adjustments.

Long-Term Investments Underpin Market Position

The FY26 results continue a turnaround that began two years prior, with ASSPL narrowing its net loss in FY25. This improved profitability coincides with Amazon’s increased investments in India, including over Rs 2,800 crore in 2026 for fulfillment and last-mile infrastructure.

Amazon has committed $48 billion in India through 2030, with a significant portion directed towards its quick commerce service, Amazon Now. This service has expanded to 100 cities with over 1,000 micro-fulfillment centers, alongside the addition of larger urban fulfillment centers.