MobiKwik Reports Record ₹384 Billion GMV, Expands Payments Gross Margin, and Significantly Narrows EBITDA Loss in Q1 FY26

Gurugram, August 1, 2025: One MobiKwik Systems Ltd (NSE: MOBIKWIK, BSE: 544305), recognised as India’s largest digital wallet by gross transaction value, has delivered a robust Q1 FY26 performance. The quarter ended 30th June 2025 was marked by record-breaking payments Gross Merchandise Value (GMV), enhanced gross margins across its diverse business segments, and a substantial reduction in operating losses.

Following the announcement, the shares of the company opened 0.31% or ₹0.75 lower at ₹244.82 on Friday, August 1.

Q1 FY26 Financial Highlights

MobiKwik’s Payments GMV for Q1 FY26 reached ₹3,83,882 million, a significant 53.1% year-on-year (YoY) increase from ₹2,50,802 million in Q1 FY25, and a 16.1% quarter-on-quarter (QoQ) growth from ₹3,30,663 million in Q4 FY25. ZIP EMI disbursals also saw strong growth, increasing to ₹6,931 million, which is up 31.4% QoQ from ₹5,272 million in Q4 FY25 and Q1 FY25. Revenue from operations for Q1 FY26 stood at ₹2,714 million, showing a modest 3.4% YoY increase from ₹2,625 million in Q1 FY25, and a 1.3% QoQ rise from ₹2,678 million in Q4 FY25.

The company achieved substantial improvements in its gross margins: Payments Gross Margin expanded to 27.9% in Q1 FY26, a remarkable 1,180 basis points (bps) increase YoY from 16.1% and 400 bps QoQ from 23.9%. Financial Services Gross Margin also sharply increased to 13.3%, up 930 bps YoY from 4.0% and 900 bps QoQ from 4.3%. The overall Contribution Margin reached 27.5%, a significant 1,560 bps improvement YoY from 11.9% and 470 bps QoQ from 22.8%.

Furthermore, MobiKwik successfully narrowed its EBITDA loss by 31.8% QoQ to ₹(312.0) million from ₹(457.6) million in Q4 FY25, and by 25.6% YoY from ₹(419.2) million in Q1 FY25. The Profit After Tax (PAT) loss also improved by 25.2% QoQ, coming in at ₹(419.2) million, compared to ₹(560.4) million in Q4 FY25, though it notably widened from a loss of ₹(66.0) million in Q1 FY25.

Segment-Wise Performance

The Payments Business achieved a new lifetime high in GMV, which surged by 53.1% YoY and 16.1% QoQ to ₹3,83,882 million. Payments revenue grew by 24.2% YoY to ₹2,131 million. The gross margin for this segment expanded significantly to 27.9%, up from 16.1% YoY and 23.9% QoQ. The net payments margin also improved to 15 bps from 11 bps YoY. Key to these improvements was cost optimisation, with payment gateway cost reduced from 51 bps to 37 bps YoY, and user incentive cost declining from 6 bps to 3 bps YoY.

Financial Services (ZIP EMI): Lending Rebound and Margin Lift

In Financial Services (ZIP EMI), disbursals for ZIP EMI rose to ₹6,931 million, demonstrating a 31.4% QoQ increase. Financial services revenue grew by 3.8% QoQ to ₹583 million. The gross margin for this segment expanded sharply from 4.3% to 13.3% QoQ, and the take rate increased to 8.4%, up from 8.3% in Q4 FY25 and 7.28% in Q1 FY25. Lending-related expenses fell by 6% QoQ to ₹506 million, significantly contributing to the margin expansion.

Operational Efficiency

MobiKwik’s Contribution Margin in Q1 FY26 stood at ₹774.2 million, showing a 21.7% increase from ₹636.3 million in Q4 FY25. Fixed costs remained stable at ₹1,086 million, a marginal decrease of 0.7% from ₹1,094 million in Q4 FY25. The EBITDA loss narrowed to ₹(312.0) million, representing a 31.8% improvement from ₹(457.6) million in Q4 FY25. This improvement in EBITDA was primarily driven by better direct cost management across both payments and lending segments. Consequently, the EBITDA margin improved by 530 bps to -11.1% from -16.4% QoQ. The PAT loss also saw an improvement of ₹141 million sequentially.

Strategic Growth Drivers

MobiKwik pursued several strategic initiatives in Q1 FY26. Firstly, the company received SEBI approval to operate as a registered stockbroker, enabling equity trading directly from its app and bolstering its ambition to become a full-spectrum financial platform.

Secondly, it launched Pocket UPI, a feature designed to allow PIN-less UPI payments without the necessity of linking a bank account.

Additionally, “First Card,” an FD-backed Rupay credit card, was introduced, offering 100% approval and lifetime free access, specifically targeting New to Credit (NTC) customers. Lastly, MobiKwik rolled out AI-driven “KWIK Collect” to enhance collection efficiency, and deployed customer service automation along with real-time CSAT tracking to improve customer retention and reduce the cost-to-serve.

Management Commentary

“We are pleased with the consistent progress across our core business. Payments demonstrated strong growth and Financial Services recovered, resulting in an improved Q1 EBITDA, which reinforces our path to profitability. We remain focused on driving operating leverage and building for long-term value creation.”: Upasana Taku, Executive Director, Co-founder and CFO, One MobiKwik Systems Ltd.

Insights For Investors

• Strong GMV Growth Reflects Platform Adoption
  MobiKwik’s payments GMV surged 53% YoY to ₹384 billion, driven by wider user adoption and increased merchant integration. This shows growing trust in its ecosystem and points to solid topline scalability potential.
• Improved Gross Margins Boost Profit Path Visibility
  Payments’ gross margin rose to 27.9% from 16.1% YoY, while financial services’ margin grew to 13.3%. This indicates better unit economics and pricing control, improving the company’s prospects for eventual profitability.
• EBITDA Loss Narrowed Significantly
  EBITDA loss reduced by 32% QoQ to ₹312 million, reflecting strong cost discipline and improved contribution margins. This trend suggests MobiKwik is on a credible path toward break-even, which could enhance investor confidence.
• Lending Business Gains Momentum
  ZIP EMI disbursals grew 31% QoQ, while take rates and margins expanded. Lower lending costs further strengthened financial services’ profitability, signaling a recovery in credit demand and operational leverage.
• Strategic Product Launches Diversify Revenue Streams
  New offerings like stockbroking, Pocket UPI, First Card, and AI-based collections aim to expand MobiKwik’s ecosystem and cross-sell potential. These moves may support long-term revenue diversification and user stickiness.
• Valuation Support from Operating Efficiency
  Stable fixed costs, a 530 bps improvement in EBITDA margin, and reduced losses suggest stronger internal efficiencies. This strengthens MobiKwik’s positioning in a competitive fintech landscape and supports valuation defensibility.

What’s Ahead For MobiKwik?

MobiKwik is well-positioned to accelerate its journey toward profitability, backed by strong GMV growth, expanding gross margins, and disciplined cost management. With regulatory approval to launch stockbroking and innovations like Pocket UPI and “First Card,” the company is building a comprehensive fintech ecosystem. Continued traction in ZIP EMI lending and AI-led efficiency improvements could further boost financial performance. As it scales new products and maintains margin momentum, MobiKwik is increasingly aligning itself with long-term value creation. Investors may watch for sustained revenue diversification and EBITDA breakeven milestones in the coming quarters.

About MobiKwik

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a publicly listed fintech company offering a comprehensive suite of digital financial services. Its offerings include a digital Wallet, UPI, Pocket UPI, Zaakpay (Payment Gateway), ZIP EMI, and various investment products. With a user base exceeding 180.2 million registered users and a merchant network of 4.64 million, MobiKwik held a significant 20% share of India’s Prepaid Payment Instrument (PPI) wallet Gross Transaction Value (GTV) as of June 2025.

REF: https://nsearchives.nseindia.com/corporate/MOBIKWIK_31072025230605_Press_Release.pdf

http://nsearchives.nseindia.com/corporate/MOBIKWIK_31072025225909_Investor_Presentation.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations