IPO-bound PhonePe Posts ₹7,115 Crore Revenue in FY25, Trims Losses

IPO bound, PhonePe’s operating revenue rose 40.4% in FY25 to ₹7,114.8 crore, up from ₹5,064.1 crore in FY24, as per the news reports. 

As per the financial statements by Tofler, Payment services accounted for ₹6,299.7 crore of the total. Insurance and lending brought in ₹557.6 crore, while other businesses such as stockbroking, mutual funds, and marketplace services contributed ₹57.2 crore.

Loss and Expenses

As per the news reports, the company’s consolidated net loss stood at ₹1,727.4 crore in FY25, narrowing 13.4% from ₹1,996.1 crore in FY24. Total expenses grew 21.1% to ₹9,394 crore. Payment processing charges increased 44.7% to ₹1,688.1 crore, and employee benefit costs rose 13.6% year-on-year.

Profitability

Adjusted EBITDA, excluding ESOP costs, reached ₹1,477 crore in FY25, compared with ₹652 crore in FY24. Adjusted Profit After Tax rose to ₹630 crore from ₹197 crore the previous year. The company reported a positive Adjusted EBIT of ₹117 crore for the first time. Cash flow from operations turned positive at ₹1,202 crore.

Market Share and Users

PhonePe maintained a leading position in the UPI ecosystem, holding 46% of transaction volume share in August, 2025. Google Pay followed with 35%, based on NPCI data. The platform has over 650 million registered users and a merchant network of 45 million outlets. It processes more than 360 million transactions daily, with annualised Total Payment Value above ₹150 lakh crore.

Regulatory Approval

In September 2025, the Reserve Bank of India gave PhonePe final approval to operate as a payment aggregator. The authorisation allows the company to handle merchant payments through cards, net banking, and wallets, expanding beyond UPI-based services.

Read more: PhonePe Gets RBI Approval to Act as Online Payment Aggregator!

Conclusion

PhonePe reported higher revenue, lower net loss, and positive cash flow in FY25. These results come as the company prepares to file its Draft Red Herring Prospectus for a planned listing on Indian stock exchanges later this year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.