MobiKwik Reports Strong Q2 FY26 Performance with 80% EBITDA Growth and Narrowed Losses

MobiKwik, a Gurugram-based fintech company, has announced robust financial results for the second quarter of fiscal year 2026 (Q2 FY26). The company reported an 80% quarter-on-quarter surge in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), reaching ₹24.8 crore. This strong performance was attributed to stringent cost control measures and a recovery in its digital lending segment. Consequently, MobiKwik's operating loss significantly decreased to ₹6.4 crore, indicating progress towards profitability.

Total income for the quarter was reported at ₹279.3 crore, remaining largely flat compared to the previous quarter. However, contribution profit saw a healthy 24% increase quarter-on-quarter, driven by a 10% reduction in direct costs and a 5.7% cut in fixed costs, reflecting enhanced cost efficiency and margin expansion. Upasana Taku, Chairperson, Executive Director, and CFO, highlighted the company's focus on sustainable profitability and its plans to accelerate growth in UPI and digital lending.

The company's payments business recorded its highest-ever quarterly Gross Merchandise Value (GMV) of ₹4.32 lakh crore, a 13% sequential increase, bolstered by higher user engagement and merchant transactions. Simultaneously, its digital lending arm, ZIP EMI, experienced a 16% quarter-on-quarter rise in GMV to ₹807 crore, with gross profit surging by 231%. MobiKwik continues to lead in India's PPI Wallet market and is among the top three fastest-growing UPI applications.

Impact: This news indicates a positive operational and financial trajectory for MobiKwik, reinforcing the growth potential within India's fintech sector. For investors tracking the digital payments and lending landscape, it signals increased maturity and profitability prospects among key players. The improved performance could boost investor confidence in the broader Indian fintech ecosystem. Rating: 6/10

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating profitability before accounting for non-operating expenses and non-cash charges. Breakeven: The point at which a company's total revenues equal its total expenses, resulting in zero net profit or loss. Contribution Profit: Revenue minus the direct costs (variable costs) associated with generating that revenue. It represents the profit available to cover fixed costs and contribute to overall profit. Gross Merchandise Value (GMV): The total value of all goods sold through a marketplace or platform over a specific period, before deducting fees or commissions. UPI: Unified Payments Interface. An instant real-time payment system developed by the National Payments Corporation of India (NPCI) for inter-bank transactions. PPI Wallet: Prepaid Payment Instrument Wallet. A digital wallet that stores pre-loaded money and allows users to make payments for goods and services.