MobiKwik Reports Wider Loss in Q1 FY26 Amid Revenue Decline
Fintech firm One MobiKwik Systems has revealed a significant widening of its consolidated loss for the June quarter, raising concerns among investors and analysts alike.
Consolidated Loss Overview
The company’s loss grew to Rs 41.9 crore this quarter, compared to a loss of Rs 6.6 crore in the same period last year. This marks a troubling trend as the firm continues to face challenges in the competitive fintech landscape.
Revenue Decline
MobiKwik’s revenue from operations stood at Rs 271.3 crore, reflecting a 20.7% decline from Rs 342.2 crore recorded in Q1 FY25. These figures underscore the need for the company to reassess its strategies to regain lost ground.
Sequential Performance Improvement
Despite the year-over-year struggles, the company’s losses showed a sequential narrowing from Rs 56 crore in Q4 FY25. Additionally, revenue saw a slight uptick of 1.3%, indicating a possible reversal in trend.
Expense Breakdown
Total expenses for MobiKwik reached Rs 312.8 crore during the first quarter of FY26, down from Rs 343.6 crore in the same period last year. This reduction in costs is indicative of the firm’s efforts to streamline operations.
Payment Gateway Costs
Payment gateway expenses increased to Rs 142.8 crore, up from Rs 127.6 crore. This rise reflects the company’s continued investment in enhancing its payment infrastructure.
Employee Expenses
Employee benefit expenses also saw a modest increase, standing at Rs 41.9 crore compared to Rs 39.1 crore in the year-ago quarter, highlighting the company’s commitment to talent retention.
Utilization of IPO Proceeds
The company successfully concluded its IPO during the last quarter of 2024. As of June 30, 2025, MobiKwik has utilized Rs 214 crore of its total net IPO funds, which amounts to Rs 530.5 crore.
Allocation of Funds
The proceeds from the IPO have been strategic, focusing on various aspects to boost growth:
- Organic growth in financial services: Rs 45.9 crore
- Organic growth in payment services: Rs 69.9 crore
- Research & Development in data, machine learning, and AI: Rs 30.8 crore
- Capital expenditure for payment devices: Rs 2.4 crore
- General corporate purposes
Record Gross Merchandise Value
MobiKwik achieved its “highest-ever” quarterly payments GMV (Gross Merchandise Value) in Q1 FY26, reaching Rs 38,388.2 crore. This impressive figure illustrates the firm’s market potential and operational capacity.
User and Merchant Base Growth
The company’s user base has grown to 180.2 million, while its merchant base has reached 4.64 million in Q1 FY26, showcasing MobiKwik’s expanding reach in the fintech sector.
Management Insights
Upasana Taku, Executive Director, Co-founder, and CFO of One MobiKwik Systems, expressed satisfaction with the company’s core business progress. She remarked, “Payments demonstrated strong growth, and Financial Services recovered, resulting in an improved Q1 EBITDA, which reinforces our path to profitability.”
Focus on Long-term Value
The management stressed its ongoing focus on driving operational efficiencies and building for long-term value creation. This approach is crucial for sustaining growth in a price-sensitive environment.
Future Outlook
As MobiKwik navigates these challenging times, the importance of strategic investment and operational excellence cannot be overstated. The firm aims to enhance its competitive position in the rapidly evolving fintech sector.
Conclusion
In conclusion, while MobiKwik faces significant challenges reflected in its financial performance, there are indicators of potential recovery. Strategic utilization of resources and a robust growth strategy will be critical as the company continues to endeavor towards a sustainable future.
Frequently Asked Questions (FAQs)
1. What was MobiKwik’s loss for Q1 FY26?
MobiKwik reported a consolidated loss of Rs 41.9 crore for Q1 FY26.
2. How much did the company’s revenue decline?
The revenue from operations declined by 20.7% to Rs 271.3 crore compared to Q1 FY25.
3. What are the main areas where IPO funds were utilized?
The funds were used for growth in financial services, payment services, R&D, and capital expenditure among other corporate purposes.
4. How did MobiKwik’s performance change sequentially from Q4 FY25?
The losses narrowed from Rs 56 crore in Q4 FY25, with revenue experiencing a 1.3% increase.
5. What was the Gross Merchandise Value for MobiKwik in Q1 FY26?
The company recorded a GMV of Rs 38,388.2 crore, marking its highest-ever quarterly performance.
