Detailed Narrative
Payments Business Achieves Record Highs
One Mobikwik's payments business demonstrated robust performance in Q1 FY26, with GMV reaching an all-time high of ₹384 billion, representing a 53% year-on-year growth. UPI contribution to total GMV increased to 35% this quarter, up from just under 30% last year, with UPI volumes growing by an impressive 85% YoY. Despite the impact of higher UPI contribution on overall take rates, the net payments margin improved to over 15 basis points, driven by a 57% reduction in user incentives and a 27% reduction in payment gateway costs.
Lending Business Shows Strong Recovery
The lending business continued its recovery trajectory, reporting a 30% quarter-on-quarter growth in disbursals, building on a similar 30% growth in the previous quarter. Current lending take rates are around 8-8.5%, with a historical potential of 10-10.5%. Management expects the lending gross margin, currently at 14%, to improve significantly and reach 40% by H2 of this financial year, as the impact of past accounting changes and macro weakness🌐 normalizes. The company continues to operate under the FLDG model, providing a 5% DLG as a fintech partner.
Path to EBITDA Break-even by FY26 End
The company reported a negative EBITDA of ₹31 crores in Q1 FY26, representing a 30% improvement from the previous quarter. Management expressed strong confidence in achieving overall company EBITDA break-even by Q3 or Q4 of this financial year. This target is supported by improved contribution margins, optimized costs across operations, and the anticipated recovery in lending margins. Fixed costs have remained stable, indicating significant operating leverage as revenues grow.
Strategic Focus on Devices and Regulatory Upside
The devices and offline merchant business, though a smaller part of the portfolio, has grown 7-8x over the last two years, with IPO proceeds earmarked for its acceleration. Management anticipates increased growth in new merchants and devices throughout the year. A significant potential upside for take rates and overall revenues is expected from regulatory clearances for Pocket UPI interchange, which the company expects 'anytime soon'.
Capital and Liquidity Position
As of June 30, 2025, One Mobikwik held approximately ₹475 crores in net cash on its balance sheet, which does not include any guarantee-related Fixed Deposits. The company's debt, primarily a working capital line for payment business settlement cycles, reduced from ₹46 crores at the end of Q4 FY25 to ₹32 crores this quarter. Finance costs are expected to remain in a similar range for the immediate few quarters.