Now Reading: 53 of 73 Indian startups turn profitable in FY26
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53 of 73 Indian startups turn profitable in FY26
A record 22 Indian new-age tech companies went public in FY26, up from 13 in FY25, as the startup ecosystem matured. Of the 73 firms tracked by Inc42, 53 (72.6%) reported profits,…
The Story in Brief
A record 22 Indian new-age tech companies went public in FY26, up from 13 in FY25, as the startup ecosystem matured. Of the 73 firms tracked by Inc42, 53 (72.6%) reported profits, together earning a net profit of ₹12,543.7 crore. However, the remaining 20 firms posted a cumulative loss of ₹17,848.6 crore, showing that consistent profitability remains elusive for many.
The 73 startups saw operating revenue jump 48.2% to ₹2.74 lakh crore in FY26, from ₹1.85 lakh crore in FY25. Eternal led with a 168.6% revenue surge to ₹54,364 crore, while Meesho trimmed its loss by 65.6% to ₹1,357.7 crore despite still being in the red. Geopolitical uncertainties weighed on the fourth quarter, but overall momentum stayed strong.
The Indian Opinion
The narrative that Indian startups have turned a corner on profitability is premature. True, 72.6% of tracked firms are in the black, but losses for the rest exceed the profits of all profitable ones combined. The story is not one of uniform success but of widening divergence. Watch whether the 20 loss-making firms, especially big spenders like Meesho and Ather, can shrink deficits faster than their revenue grows. If they cannot, the IPO boom risks masking deep structural problems.
Source: inc42.com
This story was synthesised by AI from the source linked above.
