PhonePe Reports ₹2,792 Crore Loss in FY26, Revenue Up 11.5%

Fintech major PhonePe reported a net loss of ₹2,792 crore for the financial year ended March 2026, marking a 62% increase from the previous fiscal year's ₹1,727.4 crore. The company's operating revenue grew by 11.5% to ₹7,920.5 crore during the same period.

The widening loss was attributed to several factors, including increased employee costs, higher marketing expenditure, stock option expenses, and one-time write-offs. Notably, PhonePe recognized a ₹684.7 crore goodwill impairment related to its acquisition of Indus Appstore and recorded a ₹364.7 crore loss from discontinued operations following the shutdown of its Pincode e-commerce platform.

Total expenses for PhonePe surged by over 16% to ₹10,588.5 crore in FY26. Employee benefit expenses rose 11.6% to ₹4,386.1 crore, which included ₹2,390.5 crore in ESOP expenses. Marketing and sale promotion costs nearly doubled to ₹956 crore as the company stepped up customer acquisition efforts.

PhonePe, India's largest UPI payments player, had filed for an Initial Public Offering (IPO) but subsequently deferred its listing plans, citing geopolitical tensions and volatile market conditions. The company was reportedly eyeing a valuation between $9 billion and $10.5 billion.

Despite its scale and market leadership in UPI transactions, PhonePe has not yet achieved profitability. Analysts suggest that diversifying revenue streams beyond payment processing, particularly through merchant services and financial product distribution, will be crucial for future growth.