PhonePe posts ₹7,920 crore FY26 revenue ahead of IPO restart
PhonePe’s revenue grew 11.5% to ₹7,920 crore in FY26, but widening consolidated losses and a strategic shift away from high-cost credit card payments will be key metrics for investors as the Walmart-backed fintech prepares to restart its IPO.
PhonePe reported consolidated revenue of ₹7,920 crore for the financial year ending March 2026, an 11.5% increase from the previous year. However, the Indian digital payments platform saw its consolidated net loss widen to ₹2,792 crore, up significantly from ₹1,727 crore in FY25, as it prepares to restart its public listing process.
The headline loss figure was heavily distorted by non-recurring accounting items. PhonePe booked an accelerated employee stock ownership plan (ESOP) charge alongside a non-cash goodwill impairment. These costs were partially offset by gains from the partial sale of a stake in an associate and losses from discontinued operations. Stripped of these one-off items, PhonePe’s normalised operating net loss narrowed in focus to ₹1,377 crore.
Prospective investors will also need to adjust for pending government subsidies. PhonePe did not recognise revenue from the UPI Digital Incentive in FY26 because the government has yet to disburse the funds to the industry. That missing revenue line will instead appear in the company's FY27 financial statements.
Meanwhile, the company is actively managing the cost structure of its payment channels. According to its updated draft red herring prospectus, PhonePe anticipates a revenue impact of ₹550 crore to ₹600 crore in the second half of FY26. This stems directly from its decision to discontinue the option for users to pay rent via credit cards, a feature that drove engagement but levied heavy processing costs.
To counterbalance the revenue sacrifice from credit card rent payments, PhonePe is rapidly expanding into higher-margin financial services. The firm has secured regulatory approvals across payment aggregation, insurance broking, wealth management, and lending. Diversifying beyond its core payments utility will be a critical valuation metric when the company hits the market.
The platform currently commands a massive domestic footprint, surpassing 700 million lifetime registered users and 50 million lifetime registered merchants. This growth is heavily concentrated in India's Tier 2, Tier 3, and Tier 4 cities. Walmart maintains a controlling grip on the company, holding a 73.33% stake through WM Digital Commerce Holdings.
PhonePe originally deferred its IPO plans earlier this year, citing the Middle East conflict and heightened market volatility. The fintech is now expected to publicly file and restart the listing process later this year.
