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OnMobile Global Reports 110% EBITDA Surge, Revenue Dip in FY26; Prepares for D2C Gaming Launch
OnMobile Global Ltd. has released its full-year FY26 financial results, showing a significant 110.6% increase in EBITDA to INR 29.7 crore, driven by cost efficiencies. The company's revenue, however, declined by 10.2% to INR 524.5 crore for the fiscal year ending March 31, 2026. OnMobile posted a net loss of INR 11.5 crore, contrasted by an adjusted net profit of INR 35.3 crore. The company is also gearing up for the launch of a Direct-to-Consumer (D2C) gaming console.
EBITDA Soars on Cost Efficiencies
The company's EBITDA saw a substantial year-on-year increase of 110.6%, reaching INR 29.7 crore (INR 297 million) for FY26. This robust growth reflects management's focus on improving operational discipline and optimizing costs. In the fourth quarter (Q4) of FY26, EBITDA performance also showed strength, contributing to the annual gain.
Revenue Decline Continues
Despite profitability improvements, OnMobile's revenue from operations dropped 10.2% to INR 524.5 crore (INR 5,245 million) in FY26. The mobile gaming segment was particularly impacted, with revenue decreasing by 25.4% to INR 15.45 crore (INR 1,545 million). Consolidated revenue from operations in Q4 FY26 declined by 4.2% year-on-year to INR 1,276.73 million.
Net Loss Offset by Adjusted Profit
On a consolidated basis, OnMobile Global reported a net loss of INR 11.5 crore (INR 115 million) for the full fiscal year. However, this figure is offset by a positive adjusted Profit After Tax (PAT) of INR 35.3 crore (INR 353 million), after excluding an impairment provision. The company recorded a Q4 FY26 net loss of INR 365.34 million.
Strategic Push into D2C Gaming
A significant strategic initiative for OnMobile is the upcoming launch of its Direct-to-Consumer (D2C) Gaming virtual console. This move, slated for release on a major e-commerce platform, is designed to broaden the company's market reach beyond traditional telecom operator channels and into the mainstream gaming audience.
Company Background and Focus
OnMobile Global specializes in digital content and services, with core operations in mobile gaming and digital media. The company has been undergoing strategic restructuring, shifting its emphasis from legacy telecom value-added services (VAS) towards building a stronger presence in the digital gaming sector.
Key Risks and Growth Factors
The company faces risks related to its reported net loss and the continued decline in overall and segment-specific revenues. However, OnMobile also reported a 34.5% year-on-year increase in its gaming subscriber base to 14.3 million, highlighting potential for future growth if monetization efforts are successful.
Industry Peer Comparison
OnMobile Global's main publicly traded peer in India's gaming industry is Nazara Technologies Ltd. Nazara Technologies also focuses on growth within mobile gaming and esports, navigating a competitive market.
Outlook: What Investors Are Watching
Investors will be closely monitoring the execution and market reception of the new D2C Gaming virtual console. Key focus areas include OnMobile's ability to sustain its EBITDA margins, reverse the current revenue decline, and move towards consistent net profitability. Progress in generating sustainable cash flows from operations will also be a critical indicator.