Detailed Narrative
Q4 FY26 Financial Highlights and Full Year Performance
One MobiKwik concluded Q4 FY26 with strong financial performance, achieving back-to-back profitable quarters. The company reported an EBITDA of INR 17.4 crores (5.9% margin) for Q4, representing a significant INR 63.2 crores year-over-year swing. Excluding a one-time📎 exceptional charge📎 of INR 3.76 crores, the underlying PAT for Q4 stood at INR 8.1 crores. For the full fiscal year 2026, EBITDA was near break-even at negative INR 5 crores, a substantial improvement of INR 74.2 crores from the previous year, and PAT halved to negative INR 62.1 crores, an improvement of INR 59.4 crores year-over-year.
Payments Business: Record GMV and Strategic Focus
The payments business achieved an all-time high GMV of INR 52,400 crores in Q4 FY26, marking a 58% year-over-year and 9% quarter-over-quarter improvement, and its 13th consecutive quarter of record GMV. MobiKwik remains the largest wallet in India by GTV with approximately 20% market share as of March 2026. The company is also the second fastest-growing UPI app in India, with customer-initiated UPI transactions growing 170% year-over-year, significantly outpacing the industry's 26% growth. In the Bharat Bill Payments ecosystem, MobiKwik is the sixth largest customer operating unit by GTV.
Financial Services: Profitability and Quality-Driven Growth
The financial services business delivered its highest-ever quarterly gross margin at 59% in Q4, reflecting a strategic focus on disciplined expansion and profitability over volume. The company has prioritized increasing disbursements to super-prime and repeat users, with the super-prime customer mix improving from 10% to 32% year-over-year, and repeat loans increasing from 20% to 63.5%. This shift towards higher-quality portfolios is expected to result in higher net margins, with a long-term lending margin guidance of around 4%.
New Growth Engines and Investments
MobiKwik is actively investing in four new growth engines: offline and online merchant payments, NBFC operations, and AI. The company targets a 5x device scale-up for offline merchant payments to achieve 10x revenue growth by FY28, and 10x GMV for online merchant acquiring (Zaakpay) by FY28, with both businesses aiming for EBITDA breakeven by FY28. Investments in these new businesses, primarily hitting the P&L, are expected to continue for at least 18 months. MobiKwik also aims to be an AI-first company by FY28, leveraging AI across its operations from collections to fraud detection.
Capital Structure and Liquidity Management
The company has successfully paid off all its long-term debt, with the only remaining debt as of March 31, 2026, being INR 261 crores in short-term working capital lines. Net owned unencumbered cash stands at approximately INR 434 crores. Management noted that a portion of this cash is still part of IPO proceeds and not fully available. Finance costs have also seen a reduction, decreasing from INR 7.2 crores in Q3 to INR 5.1 crores in Q4, reflecting prudent utilization of working capital lines.
Outlook and Guidance for FY27 and Beyond
For FY27, MobiKwik anticipates a 30-35% growth in digital credit GMV and expects to maintain an EBITDA margin similar to the 5% range. The company plans a 15-20% increase in fixed costs next year to support growth in new businesses. The NBFC setup is expected to be completed within 3-6 months, with co-lending operations launching in 6-9 months. Long-term payments margins are guided at 12-15 basis points, acknowledging the impact of regulatory changes in a heavily regulated market.