PhonePe H1 loss widens
PhonePe's profitability metrics deteriorated significantly at the operating level. Loss before exceptional items and tax widened 56% to Rs 1,885.06 crore in H1 FY26, compared to Rs 1,206.79 crore in H1 FY25.
PhonePe's loss grew nearly 20% in the first six months of fiscal year 2026, as the fintech firm's spending on staff and transaction processing far outstripped its revenue gains.
The digital payments firm posted a comprehensive loss, net of taxes, of Rs 1,440.86 crore for the period, compared to Rs 1,201.63 crore in H1 FY25. The bottom line was pressured by a 29.7% surge in total expenses, which grew from Rs 4,680.03 crore a year ago to Rs 6,069.27 crore.
Profitability metrics deteriorated significantly at the operating level. The loss before exceptional items and tax widened 56.2% to Rs 1,885.06 crore, compared to Rs 1,206.79 crore in H1 FY25.
The final comprehensive loss was partially cushioned by exceptional items totaling Rs 434.47 crore, which came from the sale of PhonePe's stake in C.E.Info systems or commonly known as MapMyIndia.
Revenue from operations rose 22.2% to Rs 3,918.47 crore, climbing from Rs 3,207.52 crore in the corresponding period of the previous fiscal year. Total income increased 20.7% to Rs 4,174.51 crore, from Rs 3,459.70 crore.
Cost drivers were elevated across key verticals. Employee benefit expenses climbed 33.5% to Rs 2,869.11 crore, compared to Rs 2,149.66 crore a year ago. Additionally, payment processing charges increased 38.2% to Rs 1,090.00 crore from Rs 788.54 crore in the previous comparable period.
PhonePe has filed an updated draft red herring prospectus with the Securities and Exchange Board of India for what could be one of the most anticipated fintech IPOs of the year.
The offering is structured entirely as an offer for sale, with no fresh capital being raised for the company. According to the filing, the initial public offering comprises up to 5.06 crore equity shares being sold by existing shareholders.
Walmart's vehicle, WM Digital Commerce Holdings, is offloading the largest portion at 4.59 crore shares. The retail giant currently holds an 83.9% stake in the Bengaluru-based payments firm.
Tiger Global is selling 10.39 lakh shares, while Microsoft Global Finance Unlimited Company is divesting 36.78 lakh shares as part of the offering.
Edited by Swetha Kannan