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Digital payments and fintech company PhonePay has reported a significant increase in its operating income for the financial year 2025-26. According to documents filed with the Registrar of Companies (RoC), the company’s consolidated operating income rose 11.47% to Rs 7,920 crore. However, despite the increase in earnings, the company made a loss this fiscal. The consolidated net loss was Rs 2,792 crore, while the net loss on a normal business basis was Rs 1,377 crore.
Impact of non-receipt of UPI incentive amount

The company said the government has not yet announced the UPI digital incentive amount for the financial year 2025-26. Therefore, the income from this amount has not been included in the accounts for the current financial year. PhonePe expects to receive this amount in the next financial year, 2026-27, and will then be included in the company’s financial results. This can lead to better results for the coming year.
The one-time expenditure increased the deficit

According to the company, this year’s loss includes many expenses and income that are not part of regular business. These include one-time expenses to employee stock option plans (ESOPs) offered to employees, non-cash impairment of certain assets, gains on sale of partial stakes in subsidiaries and losses on discontinued operations. These special items resulted in significantly higher net losses than normal business losses.
Digital payments have maintained a strong hold in the business

Experts believe that the double-digit growth in operating income shows that PhonePe’s digital payments business is continuing to strengthen. If the government’s UPI incentives are received on time, it could have a positive impact on the company’s results for the next financial year.
Currently, despite the increase in earnings, the company’s losses have increased due to one-time expenses. Going forward, investors will be watching PhonePay to control its costs and drive towards profitability.