Mobavenue AI Tech Q1 Results: Net profit rises 94% YoY to ₹116.60 lakhs
Mobavenue AI Tech Limited reported Q1FY26 consolidated net profit of ₹116.60 lakhs, up 94% YoY, with revenue rising 57% to ₹728.46 lakhs. Standalone profit was ₹24.09 lakhs. The board also constituted a CSR committee and noted ongoing FEMA compliance processes for its Russian subsidiary.
*this image is generated using AI for illustrative purposes only.
Mobavenue AI Tech Limited reported a consolidated net profit of ₹116.60 lakhs for the quarter ended June 30, 2026, a 94% increase from ₹60.02 lakhs in the same period last year. The Mumbai-based digital media and advertising agency saw revenue from operations surge 57% to ₹728.46 lakhs, up from ₹464.10 lakhs in Q1FY25. This growth reflects the impact of acquiring Mobavenue Media Private Limited in September 2025, which has been restated in comparative figures due to common control.
The Board of Directors approved the unaudited standalone and consolidated financial results during a meeting held on August 11, 2026. Statutory auditors N. A. Shah Associates LLP issued an unmodified limited review report on the consolidated results. The company also constituted a Corporate Social Responsibility (CSR) Committee effective August 11, 2026, pursuant to Section 135 of the Companies Act, 2013. The committee comprises Chairman Kunal Hasmukh Kothari and members Tejas Kumar Rathod, Kanchan Vohra, and Amit Kumar Mundra.
Financial Performance
Consolidated total income reached ₹750.01 lakhs, compared to ₹468.15 lakhs in Q1FY25. Total expenses rose to ₹594.76 lakhs from ₹384.44 lakhs, primarily due to higher supply and data costs (₹440.12 lakhs vs ₹290.30 lakhs) and employee benefit expenses (₹83.84 lakhs vs ₹43.65 lakhs). Profit before tax stood at ₹155.25 lakhs, against ₹83.72 lakhs in the prior year period. Tax expense was ₹38.65 lakhs, including current tax of ₹38.60 lakhs and deferred tax of ₹0.47 lakhs.
On a standalone basis, the parent company reported a net profit of ₹24.09 lakhs, up from ₹12.95 lakhs in Q1FY25. Standalone revenue from operations increased 121% to ₹102.24 lakhs from ₹46.30 lakhs. Standalone total income was ₹112.89 lakhs, with total expenses at ₹80.71 lakhs. Finance costs on a standalone basis were ₹12.06 lakhs, compared to nil in the prior year quarter.
| Particulars | Q1FY26 Consolidated (₹ lakhs) | Q1FY25 Consolidated (₹ lakhs) | Q1FY26 Standalone (₹ lakhs) | Q1FY25 Standalone (₹ lakhs) |
|---|---|---|---|---|
| Revenue from operations | 728.46 | 464.10 | 102.24 | 46.30 |
| Total income | 750.01 | 468.15 | 112.89 | 48.39 |
| Total expenses | 594.76 | 384.44 | 80.71 | 30.95 |
| Profit before tax | 155.25 | 83.72 | 32.18 | 17.44 |
| Net profit | 116.60 | 60.02 | 24.09 | 12.95 |
| EPS (Basic/Diluted) ₹ | 1.51 | 0.80 | 0.31 | 0.17 |
Corporate Developments
During the quarter, the company sub-divided its equity shares from a face value of ₹10 each to ₹2 each, effective June 12, 2026. The number of issued shares increased from 1,54,59,558 to 7,72,97,790, with no change in aggregate paid-up equity share capital of ₹154.60 lakhs. Earnings per share for previous periods have been restated accordingly. The company also granted 1,21,705 employee stock options out of 7,50,000 available options at an exercise price of ₹217.60 per share.
The auditors highlighted an emphasis of matter regarding Surge Company LLC, a step-down wholly owned subsidiary incorporated in Russia on April 8, 2024. Compliance under Foreign Exchange Management Regulation (FEMA) and processes relating to remittance of capital remain in progress as of June 30, 2026. Additionally, three step-down wholly owned subsidiaries—Mobavenue LLC (USA), MAITL Asia Pte. Ltd (Singapore), and Surge Company LLC (Russia)—were included in the consolidated results. Their interim financials reflect total income of ₹18.37 lakhs and profit after tax of ₹3.01 lakhs for the quarter, though these were not reviewed by their respective auditors.
What the Numbers Show
The significant divergence between consolidated and standalone performance underscores the strategic importance of the Mobavenue Media acquisition. While the parent company’s standalone revenue more than doubled, it contributed only ₹24.09 lakhs to net profit. In contrast, the consolidated entity generated ₹116.60 lakhs in profit, indicating that the acquired subsidiaries are the primary profit drivers. However, supply and data costs accounted for 74% of total consolidated expenses, suggesting that margin expansion will depend on managing these variable costs as scale increases. The ongoing FEMA compliance issues with the Russian subsidiary remain a regulatory risk factor for investors.
Historical Stock Returns for Mobavenue AI Tech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.98% | +4.49% | -1.78% | +17.04% | +46.73% | +13,459.32% |
How will Mobavenue AI Tech plan to optimize its supply and data costs, which currently constitute 74% of total expenses, to sustain margin expansion as revenue scales?
What is the projected timeline for resolving the FEMA compliance issues regarding the Russian subsidiary, and what potential financial or operational risks remain if these are not cleared by the next quarter?
Given that consolidated profits are driven primarily by acquired subsidiaries, what is the company's strategy for organic growth in the parent entity to reduce reliance on acquisitions for earnings?
15
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
