PhonePe reported a 11.47% rise in FY2025-26 operational revenue to ₹7,920 crore, while one-time expenses pushed its consolidated net loss to ₹2,792 crore.
Digital payments and fintech giant PhonePe posted strong growth in its operational performance during the financial year 2025-26, with consolidated operational revenue increasing 11.47% year-on-year to ₹7,920 crore. The figures were disclosed in documents filed with the Registrar of Companies (RoC).
Despite the healthy revenue growth, the company reported a consolidated net loss of ₹2,792 crore for the fiscal year. Excluding one-time and exceptional items, PhonePe’s net loss from normal business operations stood at ₹1,377 crore, indicating that extraordinary expenses had a significant impact on the final financial results.
Revenue Growth Highlights Strong Digital Payments Business
The increase in operational revenue reflects PhonePe’s continued strength in India’s fast-growing digital payments and fintech ecosystem. The company has maintained a strong presence in the Unified Payments Interface (UPI) market while expanding its financial services offerings.
Industry analysts believe the double-digit revenue growth demonstrates that PhonePe continues to attract users and transactions despite increasing competition in the digital payments sector.
Delay in UPI Incentive Payment Affected Financial Results
PhonePe said the UPI digital incentive for FY2025-26 has not yet been released by the Government of India. As a result, the company did not recognize this expected income in its current financial statements.
The fintech company expects to receive the incentive during FY2026-27, after which the amount will be reflected in its financial results. If the payment is received as anticipated, it could positively impact the company’s earnings in the next financial year.
Exceptional Expenses Led to Higher Net Loss
According to the company, the reported loss includes several non-recurring and exceptional items that are not part of its regular business operations.
These include Employee Stock Option Plan (ESOP) expenses, non-cash impairment of certain assets, gains from the partial sale of its stake in an associate company, and losses related to discontinued business operations. These accounting adjustments significantly increased the consolidated net loss compared to the operational loss generated by the core business.
Focus Shifts Toward Profitability
While PhonePe’s revenue continues to grow steadily, investors are expected to closely monitor how the company manages operating costs and improves profitability in the coming years.
The expected UPI incentive payment, combined with continued expansion in digital financial services, could provide additional support to the company’s financial performance in FY2026-27.