One MobiKwik Systems reported a net profit of Rs 11.8 crore for Q2 FY2027, marking its fourth consecutive profitable quarter. Driven by strong growth in lending and merchant payments, the stock climbed nearly 10% following the announcement. Investors are now balancing this operational turnaround against ongoing regulatory risks and competition in the digital payments sector.
One MobiKwik Systems has marked its fourth consecutive quarter of profitability, reporting a consolidated net profit of Rs 11.8 crore for the second quarter of the 2027 fiscal year. This performance highlights a major turnaround from the Rs 28.6 crore net loss the company recorded in the same period a year ago. The market responded positively to the announcement, with the company's shares rising nearly 10% during today's trading session.
The improvement in bottom-line performance is supported by strong growth across the company's core operations. Total revenue from operations for the quarter stood at Rs 295.7 crore, reflecting a 9% year-on-year increase. More importantly, the company achieved a record EBITDA of Rs 22.7 crore, shifting away from an EBITDA loss of Rs 6.4 crore reported in the year-ago period, which indicates improved operating leverage and cost management.
Growth Drivers in Lending and Payments
The company’s operational metrics suggest strong demand for its digital finance products. Platform Gross Merchandise Value (GMV)—the total value of transactions processed—reached an all-time high of Rs 59,677 crore, up 35% compared to the previous year. A significant contributor to this growth was the lending division, which saw disbursals rise 34% to Rs 1,082.6 crore. Furthermore, revenue from merchant payments surged 150% year-on-year, showing that the company is successfully increasing its penetration among small and medium-sized businesses.
While the current results indicate a successful scale-up, investors often watch the risks associated with the fintech business model. The industry remains highly sensitive to regulatory changes, specifically regarding the Merchant Discount Rate (MDR) and government policies surrounding UPI transactions. Any future changes to these structures could impact the company's take-rate and overall revenue growth.
Additionally, as the firm scales its lending operations, maintaining the quality of its loan book is essential. Fintech companies face inherent risks regarding credit quality and potential defaults, especially as they expand into newer borrower segments. Furthermore, the Indian digital payments landscape remains intensely competitive, with several large, well-capitalized players vying for market share. Moving forward, shareholders will likely track how the company maintains its profit margins, the sustainability of its lending growth, and its ability to navigate the evolving regulatory environment for digital payments.