One Mobikwik Q4 Review: Dolat Capital Maintains 'Buy', Cuts Target Price On Slow Recovery In Fin. Services

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Dolat Capital Report

One Mobikwik Systems Ltd.'s reported revenue of Rs 2,618 million, a decline of 0.6% QoQ (our estimate:+9%), due to steeper-than-expected rampdown in BNPL disbursals. Financial services revenue declined 23% QoQ, but Payment services grew 7.7% QoQ.

Management projects strong growth in its Payments segment, (added 4.5 million users/76,000 merchants) driven by the stable economics of Pocket UPI, while Fin. Services biz. faces front-ended cost pressure from DLG provisioning; however, a recovery is expected in H2 FY26.

Due to the ongoing impact of Fin. services biz., we now expect PAT loss in FY26 (vs positive PAT earlier), and lower FY27E earnings by 15.6%. However, growth opportunity from payments rail and financial product distribution would accelerate as IPO proceeds get deployed on growth strategy.

Maintain ‘Buy’ rating with revised target price of Rs 500 (implies 1.6x E.V/Sales or EV/Ebitda of ~55x on FY’27E estimate).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.