PhonePe FY26 revenue rises 11.5% to ₹7,920 crore as losses widen
Walmart-backed PhonePe reported FY26 revenue growth of 11.47%, while consolidated net loss widened to ₹2,792 crore amid one-off charges. The payments platform expects delayed UPI incentive revenue in FY27 and may restart its IPO process later this year.
What happened
PhonePe’s FY26 revenue rose 11.47% to ₹7,920 crore, while consolidated losses widened to ₹2,792 crore amid one-off charges. The Indian payments platform expects
Key facts
- FY26 consolidated revenue from operations: ₹7,920 crore
- Revenue growth: 11.47% year-on-year
- Revenue increase: ₹815 crore
- FY26 normalised operating net loss: ₹1,377 crore
- FY26 consolidated net loss: ₹2,792 crore
- FY25 consolidated net loss: ₹1,727 crore
- Walmart stake: 73.33%
- Lifetime registered users: 700 million
- Lifetime registered merchants: 50 million
- Expected FY26 H2 revenue impact from rent-payment discontinuation: ₹550-600 crore
Why this matters
PhonePe’s expanding payments footprint remains strategically valuable for ecosystem partnerships and distribution, but prospective partners should assess its path to sustainable economics beyond incentive-linked revenue.
What to watch
- Government decision, timing, and amount of UPI incentive payouts.
- FY27 revenue growth excluding UPI incentives and evidence of higher-margin non-payment income.
- Quarterly loss trajectory, cash burn, and management disclosure on one-off charges.
- Merchant-payment, lending, insurance, and wealth-product adoption metrics.
- Any formal IPO adviser appointments, restructuring, pre-IPO funding round, or draft filing.
- Competitive pricing and incentive intensity from Google Pay, Paytm, banks, and other payment platforms.
- Accelerate monetization beyond UPI through merchant payments, payment gateways, lending distribution, insurance, and wealth products.
- Emphasize adjusted-loss and contribution-margin metrics to separate one-off charges from underlying operating performance.
- Pursue clarity and collection of pending UPI incentive receivables, which could create a material FY27 revenue and earnings uplift.
- Reassess IPO timing, governance, and capital-structure readiness after FY27 financial visibility improves.
- Walmart may face pressure to demonstrate a credible path to PhonePe self-funding before committing further capital.