Fees & Costs
Amazon Seller Services reported a Rs 172 crore PBIT in FY26 on revenue above Rs 35,500 crore, its first operating profit in 13 years. The era of subsidised growth in India is closing, and fee waivers are the first thing to reprice.
Aug 19, 2026 · 3 min read · 555 words
Amazon Seller Services, the entity that runs Amazon's marketplace in India, filed its FY26 results and reported a profit before interest and tax of Rs 172 crore. It is the first operating profit on that measure in 13 years. Total revenue crossed Rs 35,500 crore, total income grew 15.5%, expenditure grew 14.8%, and operating cash flow rose to Rs 7,450 crore from Rs 4,963 crore (CNBC-TV18, August 18, 2026).
The business is still loss-making at the profit-after-tax level once interest and taxes are counted. EBITDA rose to Rs 3,640 crore from Rs 3,047 crore, so the improvement is a continuation of the FY25 turn rather than a one-off (The Hindu BusinessLine, August 18, 2026).
Income grew faster than expenditure, by roughly 0.7 percentage points. That gap is the whole story. A marketplace that spent 13 years buying growth has started letting revenue outrun cost, and the operating cash flow jump from Rs 4,963 crore to Rs 7,450 crore says the shift is happening in the cash line too, not only in the accounting one.
Marketplace revenue in India comes from the same three places it comes from everywhere: referral fees, fulfilment and logistics, and advertising. A first operating profit means at least one of those three is now carrying its own weight.
Amazon has spent years using India fee waivers and referral-fee cuts as a growth lever. A marketplace that has just proven it can run at operating breakeven has less reason to keep subsidising and more reason to protect the margin it just found. The realistic direction for FY27 is steadier fee schedules and a higher ad load, not a fresh round of cuts.
That does not make India a worse place to sell. It makes it a place where the per-unit economics need watching the same way US or European economics do, and where a referral-fee change that used to be a giveaway is now a real input to your price.
India is the template Amazon will point at for every other emerging marketplace it operates. The playbook that got Seller Services to a positive PBIT, tighter fee waivers plus a heavier advertising layer, is the playbook that arrives in Mexico, Brazil, Poland and the Middle East next. If you are planning international expansion in 2027, price on today's fee schedule, not on the promotional one.
