One Mobikwik achieved profitability in Q3 FY26, delivering both EBITDA of Rs. 15 crores and PAT of INR 40 million, marking significant year-on-year swings. This was driven by robust growth in Payments GMV, up 63% YoY to Rs. 481 billion, and a 405% YoY surge in Financial Services gross profit to INR 372 million. While the company continues to invest in its nascent merchant acquiring business, which currently incurs a quarterly burn of Rs. 13-15 crores, management expressed confidence in its sustainable growth strategy and improving credit quality.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Payments GMV | ₹48K Cr | +63.0% YoY |
| UPI Transactions Growth | 2.2 x YoY | — |
| Payments Revenue | ₹223.7 Cr | — |
| Payments Net Margin | 17bps | — |
| Personal Loans Disbursed | ₹900 Cr | — |
| Financial Services Gross Profit | ₹37.2 Cr | +405.0% YoY |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Payments GMV(billion) | 52400 | |
| EBITDA(crores) | 17.4 | |
| Total Income(crores) | 296 | |
| PAT(crores) | 4.4 |
| Category | Target | Priority |
|---|---|---|
| Profitability | EBITDA and PAT Profitability→Achieved | High |
| Profitability | Merchant Business Breakeven→Breakeven | Medium |
| Margin | Payments Net Margin→12-15 basis points | Medium |
| Margin | Lending Take Rate→Around 7% | Medium |
| Margin | Lending Contribution Margin→3-4% | Medium |
| Volume | Merchant Loans→Some numbers | Low |
| # | Metric | |
|---|---|---|
| 01 | Merchant Business Breakeven | |
| 02 | Merchant Loans Scale | |
| 03 | UPI Monetization Progress | |
| 04 | Payments Net Margin Stability | |
| 05 | Lending Contribution Margin |
| Severity | Risk |
|---|---|
medium | Regulatory Tightening and Product Changes Regulatory tightening in Q3 FY25 led to changes in lending arrangements and winding down of the BNPL (ZIP) product, impacting disbursal numbers. Management |
medium | UPI Monetization UPI transactions currently do not generate significant revenue, posing a challenge despite high growth in transaction volumes. Management |
medium | Matured Digital Lending Ecosystem The overall digital lending ecosystem has matured, leading to less appetite for significant risk-taking from NBFCs, banks, and fintechs. Management |
medium | Nascent Merchant Business Profitability The merchant acquiring business (offline devices and online) is currently small and incurs a quarterly burn of Rs. 13-15 crores, requiring further investment to reach breakeven. Management |
low | Rentpay Category Ban The Rentpay category has been shut down across all players in the market, impacting potential revenue from this segment. Management |
One Mobikwik achieved profitability in Q3 FY26, reporting an EBITDA of Rs. 15 crores (INR 150 million) with a 5% margin, and a PAT of INR 40 million. This marks a significant year-on-year swing of Rs. 57.6 crores for EBITDA and Rs. 59 crores for PAT. Consolidated total income grew 8% YoY to INR 2,972 million (Rs. 297.2 crores), while contribution profit jumped 76% YoY to INR 1,288 million (Rs. 128.8 crores), driven by improved margins in both payments and financial services.
The payments segment demonstrated strong performance, with GMV reaching an all-time high of Rs. 481 billion (Rs. 48,100 crores), reflecting a 63% YoY and 11% QoQ growth, marking the 12th consecutive quarter of record GMV. UPI transactions on MobiKwik grew 220% YoY, reaching 3.2 times the volume of the previous year. Payments revenue stood at Rs. 223.7 crores, with a net margin of 17 basis points, attributed to strategic investments in UPI and pocket UPI, as well as successful cross-selling of bill payments and wallet services.
The financial services segment exhibited robust profitability, with gross profit soaring 405% YoY and 45% QoQ to INR 372 million (Rs. 37.2 crores). Personal loan disbursals reached Rs. 900 crores, with the ZIP EMI product growing 126% YoY. Lending-related expenses saw a significant 57% YoY decline, reflecting enhanced credit quality and collection efficiency. The business operates with an 80% FLDG-led and 20% distribution-led mix, focusing on a risk-first approach.
Mobikwik is actively building its merchant acquiring business, encompassing both offline devices (EDC, soundboxes) and online payment aggregation via Zaakpay. This segment currently incurs a quarterly burn of Rs. 13-15 crores, with management aiming for breakeven within 2-3 quarters. The strategy involves expanding into underpenetrated Tier 2/3 markets and offering value-added services like merchant loans, which are expected to start showing 'some numbers' in the next financial year.
While the payments net margin reached 17 basis points this quarter, management anticipates a sustainable long-term range of 12-15 basis points, acknowledging the increasing contribution of UPI. In the lending business, the contribution margin was 4.13% this quarter, with a guided sustainable range of 3-4%. The company emphasizes maintaining a stable take rate around 7% and prioritizing credit quality and controlled costs over aggressive growth, aiming for a more stable and sustainable operating model.