PhonePe’s FY26 Losses Widen Despite Revenue Surge
By ThePip Desk
PhonePe saw revenue climb to ₹7,920 crore in FY26, but net losses ballooned by 62% to ₹2,792 crore due to one-off charges and operational costs.
Fintech platform PhonePe reported an 11.47% year-on-year revenue increase, reaching ₹7,920 crore for Fiscal Year 2026. Despite this growth, the company’s total consolidated net loss expanded significantly to ₹2,792 crore in FY26.
This substantial loss marks a 62% rise from ₹1,727 crore recorded in FY25. On a normalised operating basis, PhonePe’s net loss stood at ₹1,377 crore in FY26.
The widening deficit is primarily attributed to several one-off financial items. These include accelerated ESOP charges, a non-cash goodwill impairment, losses from discontinued operations, and gains from a partial stake sale in an associate.
PhonePe also expects a revenue impact ranging from ₹550 crore to ₹600 crore in the second half of FY26. This reduction stems from the discontinuation of rent payments made via credit cards on its platform.
Furthermore, the company did not account for UPI Digital Incentive revenue for FY26. Recognition of these funds is projected for FY27, pending disbursement from the government to the industry.
Strategic Expansion and IPO Outlook
Beyond its core digital payments, PhonePe has actively expanded its fintech ecosystem. The platform secured regulatory approvals in various financial services, including payment aggregation, insurance broking, wealth management, and lending.
Walmart, through WM Digital Commerce Holdings Pte Ltd, maintains a significant 73.33% stake in the company. PhonePe, established in December 2015, has grown to serve over 700 million lifetime registered users and 50 million lifetime registered merchants across India.
The company had previously postponed its public listing plans earlier this year, citing market volatility and the conflict in the Middle East. PhonePe now anticipates restarting the IPO process later in the year.