Financial Highlights

MobiKwik Systems Ltd. has announced its second consecutive profitable quarter, reporting a Profit After Tax (PAT) of INR 44 Mn for Q4 FY26. This follows a similar profitable quarter in Q3 FY26. For the full fiscal year FY26, the company significantly narrowed its net loss to INR -52 Mn, marking a substantial improvement of INR 742 Mn compared to the INR -794 Mn loss reported in FY25.

Performance Drivers

The company's improved financial performance was driven by robust growth in its contribution profit, which surged 112% year-over-year to INR 1,351 Mn in Q4 FY26. For the full year, contribution profit rose 21% year-over-year to INR 4,374 Mn.

Key business segments, Payments and Financial Services, showed strong momentum. Payments Gross Merchandise Volume (GMV) increased by 58% year-over-year in Q4 FY26 to INR 524 Billion, with ZIP EMI GMV also growing by 59% year-over-year. Full-year Payments GMV grew 57% year-over-year to INR 1,821 Billion. This performance reflects a strategic focus on higher-quality lending and margin expansion.

Achieving two profitable quarters in a row is a significant milestone for MobiKwik, signaling a strategic shift towards balancing growth with financial sustainability. This improved financial footing is crucial for investor confidence and future capital-raising efforts, particularly after the company previously postponed its IPO plans.

Company Background

MobiKwik, or One Mobikwik Systems Ltd., is a leading Indian digital payments platform. It offers a range of services, including mobile recharges, bill payments, and a digital wallet, alongside expanding into financial services like Buy Now Pay Later (BNPL) and lending products. The company had filed for an IPO in 2021 but later decided to defer the offering to concentrate on growth and improving unit economics.

Investor Outlook & Future Growth

Shareholders can see tangible progress toward profitability with these consecutive profitable quarters. MobiKwik's financial strategy is increasingly focused on sustainable growth and expanding profit margins.

The company is making strategic investments in new growth areas, including merchant acquiring and AI integration, aiming to build diversified revenue streams. MobiKwik projects 10X growth in its Merchant Payments business by FY28, having invested INR 547 Mn in this area during FY26. The company anticipates consistent profitability in FY27, offering a clearer financial outlook.

Key Risks

Despite the positive trend, MobiKwik incurred a full-year loss of INR -52 Mn in FY26, largely due to ongoing strategic investments. The profitability achieved in the latter half of FY26 (H2 FY26) was supported by absorbing losses from the first half, indicating that consistent full-year profitability is a relatively recent development for the company.

Competitive Landscape

MobiKwik operates in the dynamic Indian digital payments and fintech sector. Its key competitor, One97 Communications Ltd (Paytm), has also recently reported its first net profit after years of losses, showcasing a broader industry trend towards profitability.

Key Metrics

• Contribution profit grew 112% YoY in Q4 FY26 to INR 1,351 Mn, and 21% YoY for FY26 to INR 4,374 Mn.
• Payments GMV increased 58% YoY in Q4 FY26 to INR 524 Billion, and 57% YoY for FY26 to INR 1,821 Billion.
• Merchant Payments business target: 10X growth by FY28.
• Merchant Payments investment in FY26: INR 547 Mn.