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    One Mobikwik Systems Limited

    MOBIKWIK
    Financial Services·3 Feb 2026
    Management Summary

    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.

    Highlights

    6

    • Achieved both EBITDA and PAT profitability in Q3 FY '26.

    • Payments GMV rose to an all-time high in this quarter for Rs. 481 billion, growing 63% year-on-year and 11% quarter-on-quarter.

    • UPI transactions for MobiKwik grew 220% to 3.2 times in the last one year.

    • Financial services gross profit at INR 372 million (Rs. 37 crores) was up 405% year-on-year and 45% quarter-on-quarter.

    • Consolidated total income rose 8% year-on-year to INR 2,972 million, and contribution profit jumped 76% year-on-year to INR 1,288 million.

    • EBITDA was Rs. 15 crores (INR 150 million) with a 5% margin, converting to a PAT of INR 40 million (Rs. 4 crores).

    Concerns

    4

    • UPI transactions currently do not generate much revenue.

    • The merchant business (offline devices and online merchant acquiring) incurs a burn of Rs. 13-15 crores per quarter.

    • The Rentpay category has been shut down across all players in the market.

    • The merchant business is still very small and not yet a significant contributor to overall numbers.

    What Changed2

    vs Q4 FY26

    Guidance items14 → 6 (-8)Risks discussed4 → 5 (+1)

    Key financials

    Single quarter

    14 metrics
    1. 01Payments GMV₹48,100 Cr+63%YoY
    2. 02UPI Transactions Growth2.2 x YoY
    3. 03Payments Revenue₹223.7 Cr
    4. 04Payments Net Margin17 bps
    5. 05Personal Loans Disbursed₹900 Cr

    Segment breakdown

    Payments
    ₹48,100 Cr GMV63% GMV YoY Growth11% GMV QoQ Growth₹223.7 Cr Revenue17 bps Net Margin
    Financial Services
    ₹900 Cr Personal Loans Disbursed₹37.2 Cr Gross Profit4.0% Gross Profit YoY Growth45% Gross Profit QoQ Growth57.0% Lending Related Expenses YoY Decline80% DLG Share of Disbursal20% Distribution Share of Disbursal4.1% Contribution Margin
    List

    Guidance & targets

    6
    CategoryTargetPriority
    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

    Merchant Business Breakeven

    2-3 quarters
    CurrentRs. 13-15 crores quarterly burn
    TargetBreakeven

    Why it matters

    Achievement of breakeven in the merchant business will reduce overall burn and contribute to consolidated profitability.

    It may take a couple of quarters, 2 or 3 quarters but our hope is that they will breakeven and then basis that benefit will start coming up, both in our bottom line as well as in our top line.

    How to verify

    guidance_and_targets[metric='Merchant Business Breakeven']

    Risks & concerns

    5
    RiskSeverity

    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 acknowledged

    medium

    UPI Monetization

    UPI transactions currently do not generate significant revenue, posing a challenge despite high growth in transaction volumes. — Management acknowledged

    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 acknowledged

    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 acknowledged

    medium

    Rentpay Category Ban

    The Rentpay category has been shut down across all players in the market, impacting potential revenue from this segment. — Management acknowledged

    low

    Q&A highlights

    8

    “So we have no such idea that we have to go back to a previous number because earlier number that we were doing was also based off another product, which was buy now pay later product... So, our focus is not that we have to grow this number to a specific number next quarter or the quarter after that. We are taking a cautious approach because, as you know, in unsecured business you have to be cautious.”

    Clarifies that the previous high disbursal numbers were not comparable due to a different product (BNPL) and regulatory changes, indicating a shift to a more cautious, risk-first approach for consumer PL.

    asked by Deepak Poddar

    2 min read5 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Highlights and Profitability Turnaround

    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.

    02

    Robust Growth in Payments Business

    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.

    03

    Strong Profitability in Financial 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.

    04

    Strategic Focus on Merchant Acquiring and Future Growth

    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.

    05

    Margin Outlook and Sustainable Growth Strategy

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.