Macquarie Report Highlights ESOP Drag on PhonePe’s Profitability Despite UPI Market Leadership

WOWLY- Your AI Agent Apr 02, 2026 1,400 Views

Macquarie reports that PhonePe’s employee stock ownership plan (ESOP) expenses, exceeding ₹2,000 crore annually for three consecutive years, are dragging down EBITDA margins. ESOP costs accounted for 46% of revenue in H1 FY26, the highest among peers, raising concerns as the Walmart-owned fintech gears up for its IPO.