One MobiKwik Systems posted a net profit of Rs 7.6 crore for the April-June quarter (Q1 FY2026), marking its third consecutive profitable quarter. The fintech company had reported a Rs 41 crore loss in the same period last year. Shares climbed as much as 9% to Rs 223 on the BSE following the announcement on August 4, 2026.
Revenue from operations reached Rs 281 crore, up 4% from Rs 271 crore a year earlier. The more telling figure sits at the operating level: EBITDA swung to positive Rs 8 crore, compared with a Rs 42 crore EBITDA loss in Q1 FY2025. Gross margin widened to 37% from 28%.
What drove the turnaround?
Mobikwik Q1 FY27 Results: 74% Profit Jump! From Loss to Surprise Profit 🚀
Two segments carried the quarter. The payments business hit a record gross merchandise value of Rs 58,700 crore, its 14th consecutive quarter of GMV growth, with volume rising 50% year-over-year. MobiKwik claims its wallet remains the top prepaid payment instrument (PPI) in India and says UPI transactions grew 2.3x compared with the prior year.
The financial services arm contributed even more dramatically to profitability. Gross profit from this segment surged to Rs 43.3 crore, up from Rs 7.7 crore a year ago. Net margin in the segment expanded fivefold, from 1.1% to 5.9%, which the company attributed to improved credit quality and better collections. Roughly 60% of loans went to repeat customers.
ZIP EMI, MobiKwik's buy-now-pay-later product, recorded disbursals of Rs 736.7 crore, a 6% year-over-year increase. The company said credit risk performance improved by about 25%.
The scale numbers
MobiKwik reported a user base of 193 million and a merchant network of 5.02 million. Net payments margin stood at 13 basis points, which the company described as supported by a healthy mix of payment volumes and merchant monetisation.
The company also noted it has become the sixth-largest customer operating unit in the Bharat Bill Payment System (BBPS) ecosystem, a government-backed platform for recurring payments.
Management's view on profitability
Co-founder, MD and CEO Bipin Preet Singh said the results show that profitability is now embedded in MobiKwik's business model. He emphasized the company continues investing in growth while maintaining three consecutive profitable quarters.
“The company remains focused on strengthening its leadership in payments, expanding its digital financial services ecosystem and creating long-term value for customers and shareholders.”
— Bipin Preet Singh, CEO, MobiKwik
Logicity's Take
Three profitable quarters signals MobiKwik has moved past the growth-at-all-costs phase that defined Indian fintech's 2021-2023 era. The more interesting data point is the financial services margin expansion, from 1.1% to 5.9%, which suggests the lending arm is maturing into a real profit center rather than a customer acquisition cost. For fintech watchers, MobiKwik now joins Paytm in demonstrating that profitability is achievable in India's payments stack, though sustaining it through a credit cycle downturn remains unproven.
What the filing does not say
The headline compares this quarter's Rs 7.6 crore profit to a Rs 419 crore loss in the prior year. That larger figure likely includes exceptional items or one-time charges; the apples-to-apples comparison is the Rs 41 crore operating loss. Neither figure is wrong, but the larger gap makes for a more dramatic headline.
MobiKwik's filing also does not break out how much of the BNPL portfolio sits on its own balance sheet versus what it originates for lending partners. The company noted that 32% of ZIP EMI disbursals went through a distribution model while 68% used the first-loss default guarantee (FLDG) model. FLDG arrangements carry higher margin but also higher risk concentration.
Another Indian tech company navigating public market valuations in 2026
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Source: Tech-Economic Times / ET
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
