PhonePe FY26 revenue rises 11% to ₹7,920 cr; net loss widens to ₹2,792 cr

IPO-bound fintech major PhonePe reported an 11.5% year-on-year (YoY) increase in consolidated revenue from operations for FY26, even as it did not account for government incentives related to Unified Payments Interface (UPI) transactions in its financials.

The Walmart-backed digital payments company posted consolidated revenue from operations of ₹7,920 crore in FY26, up from ₹7,105 crore in the previous fiscal.

According to filings made with the Ministry of Corporate Affairs (MCA), it has not recognised revenue from the government's UPI Digital Incentive (DI) scheme for FY26, as the incentive funds have not yet been released to the industry. As a result, the related revenue is expected to be reflected in PhonePe's FY27 financial statements once the payments are received.

On the profitability front, PhonePe reported a normalised operational net loss of ₹1,377 crore for FY26. However, its total consolidated net loss widened to ₹2,792 crore from ₹1,727 crore in FY25 due to several one-off accounting items.

The FY26 loss included a one-time employee stock option (ESOP) acceleration charge, a non-cash goodwill impairment, gains from the sale of a partial stake in an associate, and losses from discontinued operations. Excluding these exceptional items, the operational performance reflected a narrower loss for the year.

Earlier this year, the Bengaluru-based fintech temporarily deferred its proposed initial public offering (IPO), citing heightened geopolitical tensions and volatility in global capital markets.

In a statement issued in March, Chief Executive Officer Sameer Nigam said the company remains committed to listing in India but has decided to postpone the process until market conditions improve.

"We sincerely hope for a swift return to peace in all the affected regions. We remain committed to a public listing in India," Nigam had said.

The company has not announced a revised timeline for the IPO and said it would revisit its listing plans once geopolitical uncertainties ease and investor sentiment stabilizes.

PhonePe had received approval from the Securities and Exchange Board of India (Sebi) for its proposed IPO on January 20 after confidentially filing its draft offer document in September 2025. It subsequently submitted an Updated Draft Red Herring Prospectus (UDRHP) on January 21, 2026.

The company plans to raise up to ₹12,000 crore through an IPO comprising entirely an offer for sale (OFS) by existing shareholders. According to industry sources, shareholders including Walmart, Tiger Global Management, and Microsoft are expected to sell around 10% of their holdings through the issue.

PhonePe was last valued at around $12 billion following an investment from General Atlantic. The company re-domiciled from Singapore to India in December 2022 and has since expanded beyond digital payments into stockbroking, wealth management, insurance distribution, lending, and consumer technology businesses.

Its newer ventures include Pincode, a hyperlocal e-commerce platform, and Indus Appstore, an Android app marketplace positioned as an alternative to Google Play Store.

As of April 29, 2026, PhonePe had more than 70 crore registered users and a digital payments acceptance network spanning over 5 crore merchants. Between FY23 and FY25, the company recorded a compound annual growth rate (CAGR) of 56.25%, underscoring its rapid expansion in India's digital payments ecosystem.