Mobikwik posts ₹4 cr profit in Q3 FY26

In a landmark quarter for the Indian fintech sector, MobiKwik (One MobiKwik Systems Limited) achieved its first-ever quarterly net profit in Q3 FY26. On February 3, 2026, the company reported a consolidated net profit of ₹4.04 crore, signaling a successful turnaround from the heavy losses that followed its 2024 stock market listing.

The results, characterized by “disciplined execution,” saw the company swing from a massive loss of ₹55.28 crore in the same period last year.

1. Financial Highlights: The Swing to the Black

MobiKwik’s “pivot to profit” was driven by steady revenue growth and a sharp reduction in operational burn.

• Operational Efficiency: The company successfully reduced its total expenses by 11% YoY. Key savings came from payment processing charges, which fell 10% to ₹129 crore, and employee benefit expenses, which dropped 6.5%.
• Cash Position: MobiKwik reported a healthy unencumbered cash balance of ₹424.4 crore as of December 31, 2025.

2. UPI & Payments Growth

Despite the focus on cost-cutting, MobiKwik’s core payments business reached new operational heights during the December quarter.

• Record GMV: The company’s total Gross Merchandise Value (GMV) for payments hit an all-time high of ₹48,100 crore ($481 billion), a 63% YoY increase.
• UPI Surge: Customer-initiated UPI transactions grew by 123% YoY. This propelled MobiKwik to the rank of 12th in India for customer-initiated UPI transactions (up from 16th in September 2025).
• UPI Dominance: UPI’s share in MobiKwik’s total GMV rose to 41%, compared to 32% in the previous year.

3. Financial Services Recovery

The ZIP EMI (Buy Now, Pay Later) and lending segments showed strong signs of recovery after a sluggish start to the fiscal year.

• ZIP EMI Growth: GMV for financial services surged 126% YoY to ₹9,000 crore, surpassing its previous peak levels.
• Margin Expansion: The net margin for financial services quadrupled to 4.13%, driven by better risk management and a 57% reduction in lending-related commissions.

4. Market Reaction & Stock Performance

The “profitability surprise” sparked a rally in MobiKwik’s stock, which had been under significant pressure throughout 2025.

• Intraday Surge: Shares of One MobiKwik Systems jumped as much as 19.07% following the announcement, hitting an intraday high of ₹236.35.
• Valuation Context: Despite the rally, the stock remains roughly 44% below its 52-week high, reflecting investor caution regarding the long-term sustainability of these razor-thin margins.

Conclusion: Delivering on a Promise

By posting a profit in Q3 FY26, MobiKwik has delivered on the management’s commitment to turn the business around in the second half of the fiscal year. While the ₹4.04 crore profit is modest, it validates the company’s shift from “growth at all costs” to “profitable scale.” For 2026, the focus will likely shift to maintaining this bottom-line momentum while navigating an increasingly crowded and regulated UPI landscape.