New Delhi, Feb. 19 -- Global broking firm Macquarie has raised key concerns about ESOP costs and revenue concentration for PhonePe ahead of its IPO.

In its recent report, Macquarie highlighted that PhonePe's high Employee Stock Ownership Plan (ESOP) expenses are a significant drag on its EBITDA margins.

ESOP costs accounted for 46% of PhonePe's revenue during the first half of FY26, which, as per reports, is the highest among its fintech peers.

"Share-based incentives at PhonePe are high, causing EBITDA to be negative. Additional risks in the form of NPCI capping UPI market share to 30% by 31 Dec 2026 can affect the onboarding of new customers. PhonePe also makes revenues out of selling digital gold, which, as a product, has been under...