Results · Financial Services

PhonePe reports Rs 2,792 Cr net loss for FY26

By Startup Enthusiast · 26 July 2026

What they do

PhonePe is a digital payments platform offering UPI transactions, lending, insurance, and investments to consumers and merchants

The company reported a net loss of Rs 2,792 Cr in FY26, driven by high employee costs and discontinued operations

Adjusted loss was only Rs 364 Cr after excluding non-cash stock-based compensation charges and goodwill write-downs

PhonePe reported a net loss of Rs 2,792 Cr for the fiscal year 2026.
This loss includes a large non-cash ESOP expense of Rs 2,197 Cr and a goodwill impairment of Rs 231 Cr.
The adjusted operational loss was significantly lower at approximately Rs 364 Cr.
Revenue from payment services reached Rs 7,619 Cr, supported by transaction fees and advertising.
The company received Rs 286 Cr in RBI incentives during the period.
Employee benefits cost Rs 4,386 Cr, with salaries accounting for Rs 1,994 Cr.
Advertising expenses nearly doubled year-on-year to Rs 956 Cr.
Total expenditure for the year stood at Rs 10,589 Cr.

The massive net loss is primarily due to accounting charges rather than cash burn.
ESOP expenses represent a significant portion of total employee costs.
Discontinued hyperlocal commerce operations contributed an additional Rs 364 Cr loss.
High spending on user acquisition and technology infrastructure impacts profitability.

PhonePe processes over 10 billion UPI transactions monthly as of June.
It holds a 46.15% market share in UPI transaction volume.
Consumer offerings include payments, mutual funds, gold, and co-branded credit cards.
Merchant solutions cover payment gateways, POS devices, and merchant lending.
The app claims to be used by one in three Indians.
Services are available in Singapore, UAE, Nepal, Sri Lanka, Bhutan, and Mauritius.
Revenue streams include transaction fees, ads, insurance, and broking commissions.