OnMobile Global Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

OnMobile Global reported a strong Q3 FY26, driven primarily by robust gaming performance with subscription revenue growing 29.6% QoQ to INR 44.6 crores and a monthly run rate of $1.6 million. Overall revenue increased 4.5% QoQ to INR 136.9 crores, with normalized EBITDA up 16% QoQ to INR 8.1 crores. The company is actively working towards the launch of its gaming console within the next 1.5 quarters, while the Mobile Entertainment segment remained stable despite a slight QoQ decline.

Highlights

  • Overall revenue grew by 4.5% quarter-on-quarter to INR 136.9 crores.

  • Gaming subscription revenue was INR 44.6 crores, up 29.6% quarter-on-quarter.

  • Gaming monthly run rate touched $1.6 million in December, nearing the $2 million target.

  • Normalized EBITDA grew 16% quarter-on-quarter to INR 8.1 crores.

  • Mobile Entertainment business remains stable and profitable, contributing strong cash foundation.

Concerns

  • Mobile Entertainment revenue saw a slight decline of 4% quarter-on-quarter to INR 91.6 crores.

  • DSO stood at 123 days, slightly higher due to festival and vacation season delaying collections.

  • One-time exceptional cost of INR 4.6 million booked for gratuity expenses.

  • DeOSphere partnership is currently 'on the ice' with no positive outlook for future collaboration.

Key financials

  1. Revenue ₹136.9 Cr +4.5%QoQ
  2. EBITDA (Normalized) ₹8.1 Cr +16%QoQ
  3. PAT ₹3.5 Cr
  4. Gaming Subscription Revenue ₹44.6 Cr +29.6%QoQ
  5. Mobile Entertainment Revenue ₹91.6 Cr -4%QoQ
  6. Gross Cash ₹138.5 Cr

What they filed

Q1 FY27: revenue down 1.6%, net profit down 281.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue129 164 156 125 128 −1%136 −17%128 −18%123 −2%
EBITDA1 10 1 6 8 +700%6 −40%-42 −4300%1 −83%
Net profit-12 -5 -8 16 6 +150%4 +180%-37 −362%-29 −281%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed
    Keep in mind, this quarter, there's no CapEx. Every single quarter that you have for the last 5 years, we had CapEx every quarter. This quarter is the first quarter that these results have 0 CapEx because even in Q2, there was a bit of CapEx.
  • Debt Gross ₹88 Cr Maturity: 30 to 90 days
    This is short-term borrowings, what you're seeing. That's basically the working capital facilities, what we have across the globe, both in India and outside India. These are not term loans, and these are only used to cover up our working capital requirement and typically, it varies from 30 to 90 days.
  • M&A Chingari Divestment · Announced

    Start getting money back from the investment.

    Chingari, operationally, it's going good. Now we are in negotiation, as I mentioned last quarter, to be able to start selling some of our shares in Chingari. So the key is that within this new financial year that starts in April, the key is to start getting money back from that investment.
  • Liquidity Cash ₹138.5 Cr
    We closed the quarter with a gross cash of INR 138.5 crores

Guidance & targets

Gaming Growth

  • Gaming Revenue Growth Gaming Growth · FY26 · High confidence 50%
    We had said that gaming will go to about 50% growth. So, we're very close to that in the range right now.

    — Francois Sirois

  • Gaming Revenue Growth Gaming Growth · quarter-on-quarter · High confidence 10-15%
    I view a stable 10%, 15% quarter-on-quarter. It might have some up like we have this quarter, some down, but the reality on a yearly basis, that's what I see still going forward.

    — Francois Sirois

Gaming Profitability

  • Gaming Profitability Gaming Profitability · FY26, FY27 starting April · High confidence Profitable
    for the year, '26, '27 starting in April, the gaming will be profitable.

    — Francois Sirois

EBITDA Margin

  • EBITDA Margin for Gaming EBITDA Margin · FY27 · High confidence 20%
    And FY '27, 20% EBITDA margin guidance is given.

    — Revanth (quoting management)

Gaming Subscription

  • Monthly Run Rate Gaming Subscription · coming quarters · High confidence $2 million
    We finally were closing into our first objective of getting towards the $2 million a month in the coming quarters.

    — Francois Sirois

Gaming Console Launch

  • Launch Timeline Gaming Console Launch · next quarter / 1.5 quarters · High confidence within the next quarter, 1.5 quarters
    So within the next quarter, you'll see we'll do a formal press release as we launch obviously. But yes, that's the goal.

    — Francois Sirois

What to watch in Q4 FY26

Gaming Console Launch

within the next quarter, 1.5 quarters
Current In development, working hard to get ready
Target Formal press release and launch

Why it matters

The console is a new product category expected to drive future growth and profitability, and its successful launch is critical.

So within the next quarter, you'll see we'll do a formal press release as we launch obviously. But yes, that's the goal.

Risks & concerns

  • Global political uncertainty for hardware sourcing

    medium

    Analyst raised concern about reliance on China for console manufacturing; management confirmed efforts to move production to India.

    Analyst acknowledged

  • Complexity and potential issues with new console launch

    medium

    Management emphasized the complexity of console launch (hardware, servers, games) and the need to start with small quantities to fix issues.

    Management acknowledged

  • Higher marketing costs in new markets

    low

    Marketing costs increased 8.8% QoQ; management explained this is normal for new market entry and customer acquisition.

    Analyst acknowledged

  • Delayed collections (DSO)

    low

    DSO increased to 123 days due to festival and vacation season, with collections expected in Q4.

    Management acknowledged

Q&A highlights

6 direct
Gaming subscriber base discrepancy Partial
So, the way it is, what we show as a gaming subscriber base is the average at the end of the quarter, what is the subscriber base at the end of the quarter. In quarter 3, what we witnessed is that we had a peak in end of September, and we peaked up and because of the festival season and the transactions which we were able to do throughout the subscriber base, we had a peak of around 400,000, 500,000 more subscribers than 13.7 million, which tapered down to 13.7 million at the end of the quarter.

Clarifies that the reported 13.7 million subscriber base is an end-of-quarter figure, and there was a higher peak during the quarter due to seasonality, explaining revenue growth despite a flat reported subscriber count.

Asked by Revanth

DeOSphere partnership status and GPU investment Direct
DeOSphere right now is on the ice. As I mentioned last quarter, I mean it's the relationship was not going good. And that's why we stopped booking new revenues. right now, it's really on the ice. So I'm not positive about it. So, I'm not counting on anything with the DeOSphere.

Provides a clear update on a previously discussed strategic partnership, indicating it's effectively paused and the company is not relying on it, and clarifies that the GPU investment was not made.

Asked by Revanth

Gaming console launch timeline and nature Direct
Yes. We're working right now very hard to get this up and ready in the next quarter. So within the next quarter, you'll see we'll do a formal press release as we launch obviously. But yes, that's the goal.

Confirms a specific timeline for the console launch and describes its unique value proposition as a full console experience for the price of a controller, activated in minutes.

Asked by Revanth

Chingari investment update and divestment plans Direct
Chingari, operationally, it's going good. Now we are in negotiation, as I mentioned last quarter, to be able to start selling some of our shares in Chingari. So the key is that within this new financial year that starts in April, the key is to start getting money back from that investment.

Outlines the company's plan to monetize its investment in Chingari by selling shares, with a timeline set for the new financial year starting April.

Asked by Jitendra Bhutoria

Dividend plans for shareholders Direct
Well, to be honest with you, as much as I love to have a dividend, right now we are really focused on launching this console. And I just want to be clear also cash-wise. Right now, we'll be doing a test with small quantities. But as we grow cash wise, this has an impact on the cash required. So right now, I mean, we need to launch a gaming console, see how big we can make it because there's multiple scenarios, small ones and bigger ones. I think the market is really big. ... So all this to say that, yes, I really hope that we'll have a dividend, but it's not going to be this year.

Clearly states that no dividend will be paid this year, prioritizing cash for the gaming console launch and growth, indicating a focus on reinvestment over immediate shareholder returns.

Asked by Amit Kumar

Gaming console manufacturing and geopolitical risks Direct
We are working with manufacturers in India, because I think that'd be better. Just unfortunately, last year, it was not clear how we could get it produced in India. Now after looking at the market, we think we could be able to produce it in India also. ... So that's why we need to get other manufacturers, and I'm happy to say that we're in discussion with somebody in India.

Addresses concerns about supply chain risks by confirming efforts to localize manufacturing in India, reducing dependence on China and mitigating geopolitical uncertainties.

Asked by Saurabh Upadhyay

Gaming console go-to-market strategy and initial quantities Direct
The team, although we've been procuring this a lot and working a lot, things will go wrong in some places. So, we need to start with small quantities. Although we have some people asking for huge quantities, right? We can just start and say, okay, we're going to ship 250,000 controllers in one shot. It doesn't work, right? You have to be able to start with small quantities, see how it goes, fix anything that goes bad in the process.

Highlights a cautious, phased approach to the console launch, starting with small quantities to iron out potential issues before scaling, indicating prudent risk management for a new product category.

Asked by Saurabh Upadhyay

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

OnMobile Global reported an overall revenue of INR 136.9 crores for Q3 FY26, marking a 4.5% quarter-on-quarter increase. Normalized EBITDA stood at INR 8.1 crores, reflecting a 16% growth QoQ. The company's PAT for the quarter was INR 3.5 crores, with a gross cash balance of INR 138.5 crores. Operating expenses included INR 27.8 crores for people cost (flat QoQ) and INR 25.2 crores for marketing (up 8.8% QoQ), while other OpEx decreased by 10% to INR 10 crores. DSO increased slightly to 123 days due to seasonal collection delays.

Gaming Segment Growth

The gaming segment continued to be a key growth driver, with subscription revenue reaching INR 44.6 crores, a significant 29.6% increase quarter-on-quarter. The monthly run rate for gaming subscriptions touched $1.6 million in December, moving closer to the target of $2 million per month in coming quarters. The gaming subscriber base stood at 13.7 million at the end of Q3, with management noting a higher peak during the festival season. The company is bullish on gaming, with plans to close deals with 6-7 new customers and expand its gaming platform, which saw its first launch in Africa this quarter.

Mobile Entertainment and Buzzmo Performance

The Mobile Entertainment segment remained stable and profitable, generating INR 91.6 crores in revenue, despite a slight 4% quarter-on-quarter decline. This segment continues to provide a strong cash foundation for the company. In the Buzzmo product line, OnMobile is in late-stage commercial discussions with three prospective industry leaders, with expansion expected in the next financial year. Geographically, the Middle East, Asia, and Latin America were the best-performing regions for OnMobile in Q3.

Gaming Console Development and Strategy

OnMobile is actively developing and preparing to launch its gaming console, targeting a release within the next 1.5 quarters. This console is positioned as a full console experience for the price of a controller, offering 200 included games and quick activation. The company is working on localizing manufacturing in India to mitigate geopolitical risks and plans a cautious, small-quantity launch to refine the product and go-to-market strategy. Management clarified that the DeOSphere partnership is currently on hold.

Capital Allocation and Shareholder Returns

The company reported no CapEx in Q3 FY26, marking the first quarter in five years without CapEx, as prior investments in gaming platforms and console development are now being capitalized. Short-term borrowings of INR 88 crores are primarily for working capital facilities, typically ranging from 30 to 90 days. Management stated that no dividend would be paid this year, as the focus remains on funding the gaming console launch and growth initiatives. The company is also in negotiations to sell shares in Chingari, aiming to recover investment starting from the new financial year in April.

Video Services Performance

The video services segment experienced a decline this quarter. Management acknowledged this downturn and indicated that they are working on launching a new service. This new service is currently in negotiations and is expected to help restabilize video revenues once confirmed and launched, rebalancing the company's overall revenue mix.

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