Amazon Seller Services (ASSPL), which operates Amazon’s marketplace in India, posted a profit before interest and tax (PBIT) of Rs 172 crore in FY26, its first profit at the operating line after depreciation, according to regulatory filings. The entity had turned Ebitda-positive in FY25, but depreciation on its India build had kept it below break-even that year.
Its Ebitda rose 19% to Rs 3,640 crore in FY26 from Rs 3,047 crore a year earlier, with the Ebitda margin improving 37 basis points to 10.41% from 10.03%. Total income grew 15.5% to Rs 35,574 crore from Rs 30,805 crore in FY25, while total expenses were held to 14.8% growth, with revenue growth outpacing cost growth for the second straight year.
The bulk of the incremental revenue came from the Stores business, which contributed 68% of the year’s growth. Store revenue rose 12.6% to Rs 28,795 crore, an increase of Rs 3,233 crore over FY25.
Within Stores, P3P, or premium third-party — fees charged to large selleRs — rose Rs 1,512 crore, up 23%, the single-largest contributor to the year’s growth. Advertising revenue added Rs 1,497 crore, up 19.9%.
S3P, or standard third-party — fees charged to small selleRs — grew Rs 412 crore, or 3.9%, with growth staying marginal on account of fee investments. Shipping revenue was Rs 88 crore lower than a year earlier, reflecting investments in free shipping threshold waiveRs .
The fee investments were substantial and fell the hardest on the small-seller end of the marketplace. From April last year, Amazon India took referral fees to zero on products priced below Rs 300 across more than 135 categories, covering roughly 12 million listings, and lowered weight handling fees for items under 1 kg.
It also cut closing fees on self-shipped ordeRs , from Rs 45 to Rs 20 for products below Rs 300 and from Rs 35 to Rs 26 for those priced between Rs 300 and Rs 500.
A second and much larger round was announced in March this year. Zero referral fees were extended to products priced under Rs 1,000 across more than 1,800 categories, taking coverage to about 125 million listings, a more than tenfold expansion.
Referral fees were also cut by 4% to 9.5% in high-demand categories priced above Rs 1,000, including apparel, healthcare, home improvement, home appliances, personal care, grocery, pet care, footwear and automotive, while Easy Ship fees were reduced by over 20% for products below Rs 300.
Amazon has said selleRs can save up to 70% on total selling fees under the revised structure, and that new seller sign-ups grew close to 50% after the fiRs t round. Because the expansion landed in the last two weeks of FY26, almost all of its impact will show up in FY27.
The cuts track a wider retreat from commission across e-commerce platforms in India. Walmart-owned Flipkart extended its own zero-commission threshold to products below Rs 1,000 in November 2025 and moved Shopsy to a fully zero-commission structure, while Meesho has built its seller base on a no-commission model.
The FY26 numbers extend a turnaround that began two yeaRs ago. ASSPL had narrowed its net loss to Rs 374.3 crore in FY25 from Rs 3,469.5 crore in FY24, with revenue from operations at Rs 30,138.6 crore.
The improvement in profitability comes even as Amazon steps up spending in India. The company announced an investment of over Rs 2,800 crore in 2026 towards fulfilment and last-mile infrastructure and worker welfare programmes, and has committed $48 billion in India through 2030.
A large part of that is going into Amazon Now, its quick commerce service, which it has taken to 100 cities on the back of more than 1,000 micro-fulfilment centres, up from around 300 in April.
In June it began adding over 100 larger-format urban fulfilment centres across Bengaluru, Chennai, Delhi-NCR, Hyderabad and Mumbai, carrying four times the selection and extending the minutes-delivery range from groceries and essentials into apparel, electronics, jewellery and furniture. That build puts it in direct competition with Blinkit, Instamart, Zepto and Flipkart Minutes.