PhonePe’s FY26 loss widens 62% to ₹2,792 crore as revenue rises 11%

PhonePe reported FY26 operating revenue of ₹7,920 crore, with lending, wealth and insurance scaling up. Expenses rose 13% to ₹10,588.5 crore, while Pincode revenue nearly halved following its B2C exit; the company has deferred its planned IPO.

— Source publishedSun, 26 Jul, 2026, 13:18 IST·First seen Sun, 26 Jul, 2026, 13:27 IST·Source Outlook Business

What happened

PhonePe’s FY26 loss widened 62% to ₹2,792 crore as expenses rose faster than revenue. Lending, wealth and insurance grew strongly, while Pincode revenue fell

Key facts

  • FY26 net loss: ₹2,792 crore, up 62% year-on-year
  • FY26 operating revenue: ₹7,920 crore, up 11%
  • FY26 total expenses: ₹10,588.5 crore, up 13%
  • Lending revenue: ₹945 crore versus ₹377.6 crore in FY25
  • Wealth broking revenue: ₹108 crore
  • Insurance revenue: ₹191 crore versus ₹180 crore in FY25
  • Pincode revenue: ₹4.5 crore, nearly half of FY25
  • One-time FY26 expense: ₹231 crore versus ₹27 crore in FY25
  • Deferred IPO target: $1.3 billion
  • Reported prospective IPO valuation: around $7 billion
  • Paytm FY26 revenue: ₹8,437 crore, up 22%
  • Paytm FY26 net profit: ₹552 crore versus FY25 loss of ₹663 crore

Why this matters

PhonePe’s deferred IPO and retrenchment from Pincode B2C suggest it may prioritise partnerships or selective acquisitions that deepen high-margin lending, wealth and insurance capabilities rather than broad consumer-commerce expansion.

What to watch

  • Quarterly operating-revenue growth versus expense growth.
  • Contribution margin and EBITDA-loss trend excluding Pincode-related costs.
  • Lending disbursals, loan-book quality, credit-loss provisions and partner-bank concentration.
  • Insurance and wealth revenue growth, take rates and active-customer adoption.
  • Evidence of Pincode restructuring, shutdown costs or a revised business model.
  • IPO timeline updates, new fundraising, valuation marks and shareholder liquidity actions.
  • Regulatory changes affecting UPI monetisation, digital lending or fintech data use.
  • Prioritise lending, insurance and wealth distribution to improve monetisation beyond payments.
  • Tighten expense controls, especially customer-acquisition, incentives and non-core product investment.
  • Reposition Pincode around a lower-burn B2B, merchant-enablement or partner-led model.
  • Defer IPO execution until loss trajectory, contribution margins and governance disclosures support a stronger valuation case.
  • Seek strategic capital or internal funding support if growth investments remain elevated.