Skip to content

    One Mobikwik Systems Q1 FY27 earnings call

    MOBIKWIK
    Financial Services·3 Aug 2026
    Management Summary

    One MobiKwik Systems Limited reported its most successful and profitable quarter yet in Q1 FY27, with PAT of INR76 million and EBITDA of INR158 million. Strong growth in both payments and financial services gross profits drove a 66% YoY increase in contribution profit. While regulatory changes impacted payments revenue, the company is focused on merchant business expansion and leveraging AI for lending growth. The company is targeting full-year PAT profitability of INR40 crores and EBITDA of INR75 crores.

    Highlights

    7

    • Q1 FY27 PAT stood at INR76 million, making it the third consecutive profitable quarter.

    • EBITDA reached INR158 million, an improvement of INR470 million YoY.

    • Payments gross profit increased 31% YoY to INR777 million.

    • Financial services gross profit saw a significant 5.6x YoY growth, reaching INR433 million, demonstrating robust credit quality.

    • Overall contribution profit rose 66% YoY due to strong performance in both payment and financial services gross profits.

    • Payments GMV hit an all-time high of INR587 billion, up 50% YoY, marking the 14th straight quarter of growth.

    • Direct costs were compressed by 21% YoY, with payments direct costs down 15% and lending direct costs down 40%.

    Concerns

    3

    • Revenue growth in payments has been muted due to regulatory pressures impacting high-revenue card-linked categories.

    • UPI monetization remains dependent on government/NPCI decisions, leading to lost revenue opportunities despite high transaction volumes.

    • Lending disbursements saw a degrowth in the last two quarters due to a conscious effort to diversify lending partners and the cumbersome NBFC business migration.

    Key financials

    Single quarter

    08 metrics
    1. 01PAT76 Mn
    2. 02EBITDA158 Mn
    3. 03Payments Gross Profit777 Mn+31%YoY
    4. 04Financial Services Gross Profit433 Mn+4.6%YoY
    5. 05Contribution Profit—+66%YoY

    Segment breakdown

    • Payments777 Mn64.2%
    • Financial Services433 Mn35.8%
    Donut· Share of Gross Profit

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Liquidity

    Cash ₹437 crores

    The company has INR320 crores (INR3,204 million) in short-term working capital facilities from two major private banks, used for payment settlements refunding only. All long-term loans were repaid as of FY26 end (March 31).

    Guidance & targets

    11
    CategoryTargetPriority
    Profitability
    Full-year PAT
    INR40 crores
    		High
    Profitability
    Full-year EBITDA
    INR75 crores
    		High
    Profitability
    Merchant Business Break-even
    Break-even
    		Medium
    Lending
    Quarterly Disbursements
    INR1,000 crores
    		High
    Lending
    Additional Disbursements from AI engine
    INR100 crores
    		High
    Lending
    FLDG Mix (Pure Distribution vs FLDG)
    40/60
    		Medium
    Payments
    Net Payments Take Rate
    12-14 bps
    		Medium
    Payments
    Merchant Business Revenue Growth
    25%
    		High
    Payments
    Consumer Payment Business Revenue Growth
    5-6%
    		High
    Financial Services
    Net Financial Services Margin
    4.5-5.5%
    		Medium
    Taxation
    Tax Shield from Prior Losses
    INR900-1,000 crores
    		Medium

    What to watch in Q2 FY27

    5

    Lending Disbursements

    next quarter (Q2 FY27)
    CurrentINR700 crores (baseline)
    TargetINR1,000 crores per quarter

    Why it matters

    Achievement of this target is crucial for accelerating financial services revenue growth and overall profitability.

    We are expecting to grow the disbursements in lending from the current baseline of about INR700 crores to INR1,000 crores every quarter in the coming quarters⏳.

    Risks & concerns

    4
    RiskSeverity

    Regulatory pressures on high-revenue payment categories

    Changes in perception and guardrails for card-linked payment options (e.g., rent, education) led to de-growth and revenue dip in payments, but re-launch is planned. — Management acknowledged

    medium

    Dependence on government/NPCI for UPI monetization

    Despite RBI mandate, PPI on UPI still does not generate MDR, impacting revenue potential and causing frustration. — Management acknowledged

    medium

    Cumbersome NBFC business migration

    Transitioning digital lending business to a wholly-owned subsidiary involves re-contracting, technology migration, and people migration, causing temporary disruption to disbursements. — Management acknowledged

    medium

    Lending concentration risk

    Previously high concentration with top three lenders (91%) was reduced to 71% through partner diversification, leading to temporary degrowth in disbursements. — Management acknowledged

    low

    Q&A highlights

    8

    “On the lending side, the revenue this quarter has also been great. Even though there was a dip in disbursements, the revenue is still holding strong. We are expecting to grow the disbursements in lending from the current baseline of about INR700 crores to INR1,000 crores every quarter in the coming quarters. And we are planning to do that on the back of two-three things.”

    Analyst questioned past muted revenue growth, and management outlined specific strategies for lending and payments to drive future acceleration.

    asked by Divyansh Jaju

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview and Profitability

    One MobiKwik Systems Limited achieved its most successful and profitable quarter in Q1 FY27, reporting a PAT of INR76 million and EBITDA of INR158 million. This marks the third consecutive profitable quarter for the company, with a significant YoY PAT swing of INR495 million and an EBITDA improvement of INR470 million YoY. Management emphasized balancing current profits with investments for future growth, aiming for full-year PAT profitability of INR40 crores and EBITDA of INR75 crores.

    02

    Lending Business Growth and Strategy

    The financial services segment demonstrated robust growth, with gross profit increasing 5.6x YoY to INR433 million. Despite a recent dip in disbursements, the company aims to grow quarterly disbursements from INR700 crores to INR1,000 crores. This will be driven by adding new lending partners (two in Q1, more in Q2), launching new products, and leveraging an in-house AI engine to improve conversion rates in the lending funnel, which is expected to generate an additional INR100 crores per quarter. The FLDG mix is targeted to shift from 32% pure distribution to 40/60 by year-end.

    03

    Payments Business Dynamics and Merchant Focus

    The payments business saw its GMV reach an all-time high of INR587 billion, a 50% YoY increase. UPI transactions grew 5x faster than the industry, making MobiKwik the second fastest-growing TPA. However, revenue growth in payments has been muted due to regulatory pressures🌐 affecting high-margin card-linked categories. The company is strategically focusing on scaling its merchant acquiring business (online Zaakpay and offline QR/soundbox/EDC machines), which grew 17% QoQ in GMV to INR125 billion in Q1 FY27, with a target of 25% QoQ revenue growth and break-even by FY28.

    04

    Cost Management and Margin Expansion

    MobiKwik successfully compressed direct costs by 21% YoY, with payments direct costs down 15% and lending direct costs down 40%. This cost efficiency contributed to a 66% YoY rise in contribution profit. The net financial services margin improved to 5.9% in Q1 FY27, up from 5.4% last quarter, with a long-range target of 4.5-5.5%. Employee benefit expenses increased from INR46 crores to INR53 crores, primarily due to hiring for the new merchant businesses.

    05

    Regulatory Environment and NBFC Transition

    The company highlighted challenges from regulatory changes, particularly the lack of monetization for PPI on UPI despite RBI mandates, which impacts revenue. Following RBI approval for its NBFC application in April, MobiKwik is in the process of migrating its digital lending business to a wholly-owned subsidiary. This cumbersome process, involving re-contracting with NBFCs and technology migration, is expected to conclude in August, after which the company will seek its final Certificate of Registration (CoR) to launch its own NBFC operations.

    This is an AI-generated summary of a publicly available earnings call transcript.