Fintech platform MobiKwik (One MobiKwik Systems) has reported a steep deterioration in financial performance for the quarter ended September 30, 2025 (Q2 FY26). Its consolidated net loss widened to ₹ 28.6 crore, up from around ₹ 3.5–3.6 crore in Q2 FY25 — an increase of approximately eight times.
At the same time, revenue from operations declined by about 7% year-on-year, dropping from ~₹ 291 crore in Q2 FY25 to ~₹ 270 crore in Q2 FY26.
Key Financials at a Glance
- Revenue from operations: ~₹ 270 crore (Q2 FY26) versus ~₹ 291 crore (Q2 FY25).
- Net loss: ~₹ 28.6 crore in Q2 FY26, versus ~₹ 3.5-4 crore a year earlier.
- The company reported an exceptional loss of ₹ 11.8 crore during the quarter due to a fraud by some registered merchants/users exploiting a technical bug.
- Expenses remained largely flat year-on-year (~₹ 286-287 crore) despite revenue dropping.
What’s Behind the Widening Losses
- Revenue decline: The drop in overall revenue reflects weaknesses in the company’s financial-services segment, as it transitions from smaller-ticket BNPL offerings to longer-tenure EMI models.
- One-off fraud hit: MobiKwik acknowledged an internal fraud of ~₹ 40.4 crore (of which ~₹ 21.9 crore has been recovered) that adversely impacted results.
- High fixed/overhead costs: Although revenue fell, expense levels did not fall proportionately. Key cost heads like payment-gateway costs, employee benefit expenses and guarantees remain high.
- Financial-services drag: The lending/credit side of the business has faced headwinds, impacting margins and revenue recognition patterns (especially under the Default Loss Guarantee model).
Implications & Outlook
For MobiKwik
- The surge in losses raises concerns about the company’s path to profitability.
- Management will likely need to sharpen cost control, improve revenue growth (especially from payments) and stabilise its lending business model.
- The fraud incident may heighten scrutiny from investors and regulators, so governance and risk controls become important.
For Investors
- Market reaction: As noted, the share price slipped following the results.
- Valuation and future growth assumptions may need to be revisited in light of weaker performance and execution challenges.
- Key metrics to watch: GMV growth in payments, contribution margin improvement, cost rationalisation, and recovery of the fraudulent amounts.
For Indian Fintech Ecosystem
- The results highlight how payments-platform companies face pressure even if user/merchant numbers grow — monetisation and cost discipline are crucial.
- The transition from high-volume low-ticket BNPL to longer-tenure EMI or lending models carries execution risk and can impact near-term profitability.
- Investors in fintech will likely place more emphasis on business-model sustainability, margin improvement and risk management.
What to Monitor Next
- Q3/Q4 results: Whether revenue shows growth again or at least stabilises, and whether losses narrow.
- Updates on fraud recovery: How much of the ₹ 40.4 crore identified fraud is recovered and what safeguards are put in place.
- Lending business turnaround: How the ZIP EMI product performs and whether disbursements, margins and default rates improve.
- Payments segment momentum: Whether merchant growth, GMV growth and higher margins offset drag from credit/lending.
- Cost control: Whether expenses will be more variable and scalable rather than sticking at high fixed levels.
