Results · Financial Services

PhonePe reports ₹3,918.5 Cr operating revenue in H1 FY26

By Startup Enthusiast · 10 July 2026

What they do

PhonePe generates revenue from UPI transactions, merchant services, lending, insurance, and advertising

The company reported operating revenue of ₹3,918.5 Cr in the first half of FY26, with 86% coming from the payments business

PhonePe processes nearly 10 Bn UPI transactions monthly, capturing 47% of India's UPI volume

PhonePe reported operating revenue of ₹3,918.5 Cr in the first half of FY26, with 86% coming from the payments business.
The company processes nearly 10 Bn UPI transactions monthly, capturing 47% of India's UPI volume.
PhonePe earns revenue from interchange fees on merchant transactions, subscription fees for payment devices, and commissions from billers.
The payments business includes commissions from billers that have partnered with PhonePe, and platform fees from online merchants.
PhonePe's merchant services revenue grew from ₹429.8 Cr in FY23 to ₹1,038.5 Cr in H1 FY26, on track to reach ₹2,077 Cr in FY26.

PhonePe's revenue is driven by its vast UPI transaction volume and merchant services, despite UPI's weak monetisation levers.
The company's payments business includes interchange fees, subscription fees for payment devices, and commissions from billers.
PhonePe faces competition in merchant payments from players like Paytm, Razorpay, and Pine Labs, but has a strong consumer base.

PhonePe offers UPI payments, investment, insurance, recharges, and DTH services to consumers.
For businesses, PhonePe provides offline and online merchant solutions, including payment gateways, payment aggregators, and payment links.
PhonePe also offers merchant lending, advertising, and co-branded credit cards.
The company processes UPI transactions for individuals and merchants, with interchange fees on merchant transactions.
PhonePe has over 92 Lakh net deployed payment devices across its merchant network, including Smartspeakers and EDC machines.

PhonePe aims to maintain its current revenue run rate, with FY26 revenue potentially growing by 15%-20%.
The company is preparing for an IPO in the near future, which will require it to demonstrate profitability.