IPO-bound PhonePe's revenue rises 22% to Rs 3,918 crore, net loss widens to Rs 1,444 crore in H1FY26

PhonePe

• PhonePe reported a Rs 1,444.4 crore net loss in H1 FY26 despite Rs 3,918.5 crore revenue.
• PhonePe's IPO will be a pure offer-for-sale with no fresh shares issued
• Walmart's WM Digital Commerce to sell up to 45.9 million shares in the IPO

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PhonePe reported revenue from operations rose 22% to Rs 3,918.5 crore but posted a net loss of Rs 1,444.4 crore in the first half of FY26, showed the updated draft red herring prospectus (UDRHP) PhonePe filed with markets regulator Sebi for a pure offer-for-sale (OFS) initial public offering.

The company reported a net loss of Rs 1,444.4 crore for the six months ended September 30, 2025, compared with a loss of Rs 1,203.2 crore in the corresponding period a year earlier, indicating an increase of about Rs 241 crore

For the six months ended September 30, 2025, the company’s total income stood at Rs 4,174.5 crore, while total expenses rose to Rs 6,069.3 crore.

This resulted in a loss before tax of Rs 1,450.6 crore, reflecting continued pressure on profitability despite strong top-line growth.

Employee benefits remained the largest cost head at Rs 2,869 crore, underlining PhonePe’s heavy investment in manpower and operations.

Payment processing charges were Rs 1,090 crore, driven by the scale of transactions handled on the platform. Depreciation and amortisation expenses stood at Rs 567.7 crore, while other expenses amounted to Rs 1,518.3 crore.

PhonePe's IPO

PhonePe has proposed an IPO that will be entirely an offer for sale, with no fresh issue of shares. This means the company will not receive any proceeds from the public issue and the entire amount raised will accrue to the selling shareholders.

The IPO will comprise an offer for sale of up to 50,660,446 equity shares of face value Re 1 each. The largest seller is WM Digital Commerce Holdings Pte. Ltd., the Walmart-controlled promoter entity, which plans to offload up to 45,942,496 shares.

Among the investor shareholders, Microsoft Global Finance Unlimited Company will sell up to 3,678,790 shares, while Tiger Global PIP 9-1 Ltd will sell up to 1,039,160 shares.