Despite the increase in net loss, PhonePe’s top-line continues to show resilience. The company reported a 22.2% jump in revenue from operations, reaching ₹3,918 crore for the April–September 2025 period. However, this growth was eclipsed by a 30% surge in total expenses, which climbed to ₹6,069 crore.
Key Financial Metrics (H1 FY26)
| Metric | H1 FY25 | H1 FY26 | Growth (YoY) |
| Revenue from Operations | ₹3,208 Crore | ₹3,918 Crore | +22.2% |
| Total Expenses | ₹4,680 Crore | ₹6,069 Crore | +29.7% |
| Net Loss | ₹1,202 Crore | ₹1,441 Crore | +19.9% |
| Adjusted EBITDA | ~₹250 Crore | ₹254 Crore | Stable |
Why the Losses Widened
The bottom line was pressured by significant investments in human capital and the underlying costs of maintaining its 48% market share in the UPI ecosystem.
- Employee Benefit Surge: Staff-related expenses, including salaries and ESOPs, rose 33.5% to ₹2,869 crore. This remains the company’s single largest cost center.
- Payment Processing Fees: Charges for processing transactions increased by 38.2% to ₹1,090 crore, reflecting the massive volume of 9.8 billion transactions processed in December 2025 alone.
- Exceptional Gain: The loss was partially cushioned by a one-time gain of ₹434 crore from the sale of PhonePe’s stake in C.E. Info Systems (MapMyIndia).
The Path to IPO: April 2026 Debut
PhonePe’s updated filing confirms its intent to list on the Indian bourses by April this year.
- Offer Structure: The ₹12,000 crore ($1.5 billion) IPO will be entirely an Offer for Sale (OFS).
- Exiting Investors: Major backers Microsoft and Tiger Global are reportedly seeking a full exit, while majority shareholder Walmart will trim its stake but remain the promoter.
- Valuation: The company is seeking a benchmark valuation of approximately $15 billion (~₹1.37 lakh crore).
Conclusion: The “Financial Services” Pivot
While UPI drives the volume, PhonePe is betting its future profitability on high-margin financial services. Revenue contribution from lending and insurance distribution nearly doubled to 11.55% of the total pie in H1 FY26. For investors, the “April debut” will be a test of whether the market values PhonePe’s massive 650-million-user scale or remains wary of its widening absolute losses.
