PhonePe, India’s largest digital funds platform, has made appreciable progress in direction of profitability with the contribution margin remaining secure whereas it has seen its oblique prices decline from 173 per cent of income to 100 per cent in FY25 because it reaped the advantages of working leverage, as per Bernstein’s pre-IPO Analysis Report.
PhonePe has seen a wholesome income development led by an enhancing monetization illustrated by the rising Income/Complete Fee Quantity ratio. The growing share of non-payment income has contributed to the development of improved monetization, as per the report. This development has resulted in the EBITDA and PAT margins enhancing from FY23 to FY25 with the corporate producing optimistic working money movement in FY’25.
The ratio of Each day Active Retailers/ Month-to-month Active Retailers has inched up from 44 per cent in FY23 to 60 per cent in H1FY26. The sharp improve in put in fee units (sensible audio system and EDC machines) is more likely to have helped in driving higher engagement, stated the report.
Total, the wholesome development in GMV (from Rs 7,710 crore to Rs. 14,770 crore in FY25 and Rs 8,221 crore in H1 of FY’26) and improved monetization has put PhonePe on a profitability development, which has taken a pause in H1 FY’26 because of the income headwinds from regulatory actions, stated Bernstein.
With over 23 crore month-to-month active customers, PhonePe has one of many largest person bases in the monetary providers sector and even amongst broader digital client platforms. It processes $1.8 trillion of annual fee worth putting it alongside world fee majors. Scale was pushed by its dominant 49 per ent market share in UPI, India’s extremely profitable digital fee methods.
Printed on February 5, 2026
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