OnMobile Global

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.

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.

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.

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.

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.

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.