One MobiKwik Systems Ltd reported a consolidated net loss of ₹41.9 crore in Q1 FY26, marking a more than six-fold year-on-year rise from the ₹6.6 crore loss in Q1 FY25. Revenue declined 20.7% to ₹271.3 crore, reflecting a challenging quarter for the digital payments and lending platform
🚗 Revenue Decline and Cost Pressures
- Revenue fell sharply from ₹342.2 crore in Q1 FY25 to ₹271.3 crore in Q1 FY26, due to a slowdown in its financial services segment, particularly the now-discontinued high-margin short-tenure ZIP credit product.
- Despite this, MobiKwik recorded its highest-ever payments GMV of ₹38,388 crore, with over 180 million registered users and 4.64 million merchants on its platform
🧾 Expense Breakdown and EBITDA Trends
- Total expenses stood at ₹312.8 crore, down slightly from ₹343.6 crore YoY. The largest expense was payment gateway costs (₹142.8 crore, up from ₹127.6 crore), followed by employee benefits (₹41.9 crore)
- Financial guarantee expenses jumped nearly tenfold to ₹21.4 crore, reflecting upfront cost recognition under new accounting standards, compared to ₹2.5 crore a year ago.
- EBITDA loss improved to ₹31.2 crore from a loss of ₹45.8 crore in Q4 FY25, but remains below last year’s modest EBITDA profit of ₹2.2 crore Moneycontrol.
🌐 Strategic Shifts and Future Outlook
- Mobikwik has shifted focus to longer-tenure, larger-ticket ZIP EMI products, using default loss guarantee (DLG) and risk-free distribution models after discontinuing short-duration ZIP loans due to macroeconomic and regulatory headwinds
- The company consumed ₹214 crore from its IPO proceeds (total corpus ₹530.5 crore) toward expanding financial services, payments, R&D, AI projects, and capital expenditures as part of its growth strategy
📊 Summary Table
| Metric | Q1 FY26 Result / Change |
|---|---|
| Net Loss | ₹41.9 crore (↑ over 6x YoY) |
| Revenue from Operations | ₹271.3 crore (↓ 20.7%) |
| Payments GMV | ₹38,388 crore (all‑time high) |
| Registered Users | 180.2 million; Merchants: 4.64 million |
| Payment Gateway Cost | ₹142.8 crore |
| Financial Services Revenue | ₹58.3 crore (↓ ~65%) |
| Financial Guarantee Expense | ₹21.4 crore |
| EBITDA Loss | ₹31.2 crore |
| Use of IPO Funds | ₹214 crore spent on growth, R&D, corporate uses |
📌 Key Takeaways
- MobiKwik posted a steep YoY drop in revenue and a six-fold rise in net losses, mainly due to a weak financial services business and new accounting impacts on lending expenses.
- Strong payments momentum—evidenced by record GMV and user growth—suggests continued platform traction.
- The company is realigning its lending strategy toward higher-ticket EMI products and scaling core operations with funds drawn from its recent IPO.
