One MobiKwik Systems Q1 Loss Widens To Rs 42 Crore
The company expects to achieve breakeven EBITDA in the last two quarters of the ongoing fiscal.
Fintech firm One MobiKwik Systems has reported widening of consolidated loss to Rs 41.9 crore for June quarter on the back of pressures in its high-margin financial services business and strategic overhaul efforts. The company said it expects recovery and EBITDA breakeven in the second half of fiscal 2026.
MobiKwik had incurred a loss of Rs 6.6 crore in the same period last year.
The Gurugram-headquartered firm's revenue from operations stood at Rs 271.3 crore, a 20.7% decline from Rs 342.2 crore in Q1 FY25, as per a regulatory filing.
Sequentially, losses narrowed from Rs 56 crore in Q4 FY25, while revenue saw an uptick of 1.3%.
"Our financial services business experienced a significant revenue decline from Rs 170 crore in Q1 FY25 to Rs 58 crore in Q1 FY26." Komal Sharan, Head of Finance, Corporate Development and Investor Relations at MobiKwik, said.
Financial services revenue dropped from Rs 170.7 crore in Q1 FY25 to Rs 58.3 crore in Q1 FY26, while the Payments business revenue grew 24% year-on-year to Rs 213.1 crore.
She attributed this reduction to three key factors: industry-wide moderation in unsecured personal lending markets, MobiKwik's deliberate strategic shift away from BNPL products to focus on more sustainable lending models, and the implementation of new accounting treatments under revised DLG guidelines.
"Given that financial services operate at higher margins than our payments business, this revenue decline directly impacted our Ebitda performance and current loss position." she said.
Total expenses were at Rs 312.8 crore during the first quarter of FY26, compared with Rs 343.6 crore in the same period last year.
Payment gateway costs grew to Rs 142.8 crore, up from Rs 127.6 crore, while employee benefit expenses stood at Rs 41.9 crore, reflecting a modest increase from Rs 39.1 crore in the year-ago quarter.
The Ebitda loss improved to Rs 31.2 crore in Q1 FY26, from Rs 45.8 crore in the previous quarter. EBITDA in Q1 FY25 was a positive Rs 22 crore.
MobiKwik CFO and Co-Founder Upasana Taku said the company expects to achieve breakeven EBITDA in the last two quarters of the ongoing fiscal.
"We are expecting that by September, which is when the one-year impact of the lending-related accounting changes get seasoned, we will get back to the 40% margin...And we do expect that basis that recovery, the overall company will become break-even at an Ebitda level. And of course, profitability from there on is inevitable as a function of the fact that this business has significant operating leverage." she said.
The company, which concluded its IPO during the quarter ended Dec. 31, 2024, stated that it has utilised Rs 214 crore of its net IPO funds as of June 30, 2025, out of a total corpus of Rs 530.5 crore.
The proceeds were used towards funding organic growth in financial services business (Rs 45.9 crore), funding organic growth in payment services business (Rs 69.9 crore), R&D in data, machine learning, artificial intelligence, product and technology (Rs 30.8 crore), capital expenditure payment devices business (Rs 2.4 crore), and general corporate purposes.
MobiKwik said it recorded the 'highest-ever' quarterly payments GMV (Gross Merchandise Value) in Q1 FY26 at Rs 38,388.2 crore.
The company's user base stood at 180.2 million and merchant base at 4.64 million in Q1 FY26.
Shares of One Mobikwik Systems Ltd settled 4.60% lower at Rs 234.35 apiece on the BSE on Friday.
