MobiKwik FY26 Outlook: Core EBITDA ₹50 Cr, Consolidated Loss ₹5 Cr on New Venture Investments

FY26 Financial Outlook

MobiKwik projects ₹50 Cr EBITDA from its core business for FY26. However, investments in new ventures are expected to result in a ₹5 Cr consolidated EBITDA loss for the fiscal year. Overall revenue is anticipated to remain stable.

Payments GMV Soars, New Ventures Costly

The company's Payments business showed strong growth, with Gross Merchandise Value (GMV) rising 57% year-on-year to ₹1,821 Billion. Investments in new business initiatives—including offline and online merchant acquiring and leveraging its NBFC license for lending—created a ₹55 Cr drag. This drag led to the projected ₹5 Cr consolidated EBITDA loss. The Financial Services segment reported total disbursements of ₹32,380 Million, with a Net Financial Services Margin of 5.39%, and Net Payments Margin at 16 Bps.

Strategic Priorities for Future Growth

MobiKwik is balancing its profitable core payments business with investments in future growth areas. The company is shifting its focus to high-quality recurring revenue in payments, which now constitutes 74% of its business. MobiKwik aims for these new ventures, including merchant acquiring solutions, to break even by FY28. It also plans to leverage its NBFC license to expand lending opportunities.

Company History and Past Challenges

Founded in 2009, MobiKwik is a significant player in India's fintech sector. The company has raised substantial funding, including $150 million in late 2021. Plans for an Initial Public Offering (IPO) have been postponed as the company prioritizes achieving operational and profitability milestones. MobiKwik previously denied allegations of a large data breach in 2021. In early 2023, reports indicated SEBI was investigating potential violations of Investment Advisers Regulations, highlighting compliance hurdles for fintechs.

Key Risks and Peer Landscape

The significant capital allocated to new growth engines poses a continued risk to near-to-medium term consolidated profitability. Achieving the FY28 break-even targets for merchant acquiring businesses will depend on effective execution and market acceptance. Past issues such as data security concerns or regulatory investigations could resurface and affect investor confidence. MobiKwik's strategy contrasts with peers like Paytm (One97 Communications), which is focused on reducing losses amidst regulatory challenges, while both emphasize payments and lending. MobiKwik's proactive investment in new ventures marks a different path.

What to Watch Next

Investors will be monitoring MobiKwik's progress in growing its core payments business and improving margins. Key developments to watch include the execution of its four new growth engines, updates on the FY28 break-even targets for its merchant businesses, any new funding rounds or strategic partnerships, and the impact of its NBFC license on lending operations.