One Mobikwik Systems posted a net profit of ₹7.6 crore in the first quarter, reversing a ₹41 crore loss from the previous year. The company's revenue grew 4% to ₹281 crore, supported by a significant reduction in lending operational expenses. This financial turnaround follows the firm's recent receipt of an NBFC license from the Reserve Bank of India.
One Mobikwik Systems has marked a turnaround in its financial performance, reporting a net profit of ₹7.6 crore for the first quarter of the current fiscal year. This is a notable shift compared to the same period last year, when the fintech firm recorded a loss of ₹41 crore. The company’s revenue also saw growth, rising 4% year-on-year to reach ₹281 crore, up from ₹271 crore in the previous corresponding quarter.
The improvement in the bottom line was driven largely by a sharp decline in operational costs, particularly within the lending segment. Lending operational expenses dropped to ₹2 crore for the quarter, a significant reduction from the ₹30 crore reported in the same period last year. Additionally, the company recorded an EBITDA of ₹8 crore, compared to an EBITDA loss of ₹42 crore in the prior year, suggesting a move toward more stable operational efficiency.
Impact of the NBFC License
Central to the company's long-term strategy is the NBFC license recently granted by the Reserve Bank of India to its subsidiary, MobiKwik Financial Services. This regulatory approval is a critical development for the company’s credit business. By operating its own regulated lending arm, the firm aims to internalize its credit operations, which is expected to help in launching new loan products and potentially improving profit margins over time.
The subsidiary plans to focus on both secured and unsecured lending for consumers and small businesses, specifically targeting segments that remain underserved by traditional banking. While the license is in place, the company must now fulfill final regulatory conditions to fully operationalize its credit lending services.
Recent Investor Activity
Investor interest in the stock has been active throughout the year. In late April, Peak XV Partners, a major venture capital investor, exited its position in the company. The firm sold approximately 60.8 lakh shares, which accounted for about 7.7% of the company's total equity. The shares were offloaded at an average price of ₹214 each, in a deal worth over ₹130 crore. The buyers in this transaction included institutional investors like Florintree Advisors, Viridian Asset Management, Dymon Asia, and Karma Capital.
Following the latest earnings announcement, the stock saw a 2.13% increase, trading at ₹209.59 on the NSE. Looking ahead, investors will be monitoring how the company executes its lending strategy under the new NBFC framework. The key monitorable remains the speed at which the firm can scale its credit operations and whether it can maintain its improved profit margins while navigating the competitive fintech landscape in India.