MobiKwik Reports Q2 FY26 Financials: Key Highlights and Insights
Indian fintech powerhouse One MobiKwik Systems Ltd. has released its consolidated operating revenue for the second quarter of fiscal year 2026 (Q2 FY26), reporting Rs 270 crore. This figure marks a year-on-year decrease of 7.2% from Rs 291 crore in Q2 FY25, predominantly influenced by a high comparative base and a normalization in loan volumes.
Overall Financial Performance
Incorporating additional income, the total revenue reached Rs 279.3 crore for the quarter. The growth was attributed to record payment volumes coupled with disciplined cost management strategies. MobiKwik’s Gross Merchandise Volume (GMV) in payments showed a significant uptick, increasing by 13% quarter-on-quarter and 53% year-on-year, climbing to Rs 43,216.7 crore from Rs 28,275.9 crore in Q2 FY25.
Growth in ZIP EMI Segment
The company’s ZIP EMI segment has continued its upward trend, achieving a sequential growth of 16% to Rs 807.1 crore. This consistent performance showcases MobiKwik’s effective strategies in diversifying its offerings and enhancing user engagement.
Improved Operational Efficiency
Despite a marginal decline in total revenue by 1%, the contribution margin improved by 24% to Rs 96.1 crore. This is indicative of heightened operational efficiency. Remarkably, the EBITDA loss diminished by 80%, dropping to Rs 6.4 crore from Rs 31.2 crore in the previous quarter, aided by stringent cost controls and operational leverage enhancements.
Core Business Operations and Profitability
MobiKwik’s core payments business remains profitable at scale, benefitting from an expanded user base of 183.5 million and a merchant network comprising 4.71 million. With a notable 3.5x annual growth in UPI transactions this quarter, MobiKwik continues to establish itself as a leader in the digital payments landscape.
Robust Growth in Digital Finance
The digital finance segment has shown remarkable recovery, with the ZIP EMI gross margin significantly increasing to 42%. A reduction in loan expenses to 4.4% of GMV from 7.3% in the previous quarter reflects MobiKwik’s effective risk management and positive portfolio performance.
Future Outlook and Strategic Expansion
Overall, the company’s total revenue remained stable at Rs 279.3 crore, while direct costs fell by 10% and fixed costs by 5.7%. With a contribution profit increase of 24% to Rs 96.1 crore, MobiKwik is poised on the brink of profitability. The net loss for Q2 FY26 was reported at Rs 28.6 crore, which is a marked improvement from Rs 41.9 crore the previous quarter.
Upasana Taku, chairman and CFO of MobiKwik, expressed optimism regarding the quarter’s results, emphasizing the organization’s commitment to sustainable profitability. Looking ahead, MobiKwik aims to accelerate its expansion in the UPI and digital lending sectors, capitalizing on its strong market position as it embarks on its next growth phase.