Earnings from UPI increased, yet PhonePe remained in loss! The company gave a big reason

Digital payment and fintech company PhonePe has registered a good growth in its operational revenue in the financial year 2025-26. The company’s integrated operating income increased by 11.47% to Rs 7,920 crore. This information has come to light from the documents submitted to the Registrar of Companies (RoC).

However, despite increasing earnings, the company had to face losses in this financial year. The total consolidated net loss stood at Rs 2,792 crore, while the company’s net loss on the basis of normal business activities was recorded at Rs 1,377 crore.

Effect of not getting UPI incentive amount

The company said that the amount of UPI Digital Incentive for the financial year 2025-26 has not yet been released by the government. For this reason, the income from this item was not included in the accounts of the current financial year. PhonePe expects to receive this amount in the next financial year i.e. 2026-27 and then it will be included in the financial results of the company. With this, next year’s results may appear better.

One-time expenses increased the deficit

According to the company, this year’s loss also includes many expenses and income which are not part of regular business. These include one-time expense related to ESOP (Employee Stock Option Plan) given to employees, non-cash diminution in the value of certain assets, profit from sale of partial stake in an associate company and loss from discontinued business. Due to these special items the total loss appeared much higher than the normal business loss.

Strong hold remains in digital payment business

Experts believe that the double-digit growth in operating income shows that PhonePe’s digital payments business is continuing to grow from strength to strength. If the UPI incentive amount is received from the government on time, then its positive impact can be seen on the results of the company’s next financial year.

At present, despite increasing earnings, the company’s losses have increased due to one-time expenses. In the coming time, investors will keep an eye on how PhonePe controls its costs and how fast it moves towards profitability.