One MobiKwik Systems , a prominent player in India's fintech sector, has set its sights on achieving profitability by the second half of fiscal year 2026 (FY26), according to Co-founder and CFO Upasana Taku. The company has made significant strides in reducing its losses and optimizing costs in the recent quarter.

Improved Financial Performance

MobiKwik reported a notable reduction in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) loss, which decreased from Rs 45.00 crore in Q4 FY25 to Rs 31.00 crore in Q1 FY26. This represents a substantial improvement of Rs 14.00 crore in just one quarter, showcasing the company's commitment to financial optimization.

Cost Management and Efficiency

The fintech firm has maintained a tight control over its fixed costs, which have remained stable between Rs 104.00-108.00 crore for five consecutive quarters. Additionally, MobiKwik has successfully optimized its direct costs, achieving a 5-6% reduction from Q4 FY25 to Q1 FY26.

Customer Acquisition Strategy

One of MobiKwik's key strengths lies in its efficient customer acquisition approach. The company reports a customer acquisition cost of Rs 40.00, which it claims is among the lowest in India's fintech sector. MobiKwik plans to maintain this cost within the Rs 30.00-40.00 range, demonstrating its focus on sustainable growth.

Business Growth

The payments business of MobiKwik has shown robust growth, with a 53% year-on-year increase in Q1 FY26. The company's Gross Merchandise Value (GMV) also saw a significant uptick, rising by 16% quarter-on-quarter.

Lending Business Performance

While the company's loan disbursals for ZIP EMI and personal loan products grew by 31% on a quarterly basis, there was a 21% year-on-year decline. Taku views the current fiscal year as a recovery period, expressing confidence in returning to annual growth rates of 30-50% in the future.

Looking Ahead

Upasana Taku's outlook for MobiKwik remains optimistic. She expects the current fiscal year to serve as a foundation for recovery, paving the way for more robust growth in the coming years. The company's focus on reducing losses, optimizing costs, and maintaining efficient customer acquisition strategies appears to be central to its path towards profitability.

As MobiKwik navigates the competitive fintech landscape, its ability to balance growth with cost management will be crucial in achieving its profitability target by the second half of FY26.

One Mobikwik Systems , a leading fintech company in India, has reported strong financial results for the first quarter, showcasing significant growth in its payments business and a recovery in its lending segment.

Record-Breaking Payment GMV

MobiKwik achieved a lifetime high in payment Gross Merchandise Value (GMV), reaching ₹384.00 billion. This represents a robust 53% year-on-year growth, highlighting the company's strong position in the digital payments market.

UPI Transactions on the Rise

The company reported that UPI transactions now account for 35% of its total GMV, up from 30% in the previous year. This segment has shown impressive growth, with UPI transactions increasing by 85% annually.

Maintaining Healthy Margins

Despite the increasing share of UPI transactions, which typically have lower margins, MobiKwik has maintained a net margin of 15 basis points in its payments business. The company's contribution margin for payments reached a lifetime high of 28%.

Lending Business Recovery

After facing challenges in previous quarters, MobiKwik's lending business showed signs of recovery. The company reported a 30% growth in loan disbursals, following a similar growth rate in the previous quarter.

Financial Performance and Outlook

MobiKwik reported an EBITDA loss of ₹31.00 crores, which represents a ₹15.00 crore improvement from the previous quarter. The company's management expects the lending gross margins to improve from the current 14% to 40% by the second half of FY26 as the loan portfolio seasons.

Cash Position and EBITDA Breakeven Target

With ₹475.00 crores in cash on its balance sheet from IPO proceeds, MobiKwik is well-positioned to support its growth initiatives. The company has set an ambitious target to achieve EBITDA breakeven by the third or fourth quarter of the current financial year.

Management Commentary

Upasana Taku, Co-founder, Chairperson, and CFO of MobiKwik, commented on the results during the earnings call: "We are very happy to inform you that the business has grown nicely. Our main and core business, payments, continues to grow nice and strong on all metrics, GMV, gross margin. All lifetime best numbers and while it is a strong indicator of growth in terms of revenue year-on-year, we also believe that more revenue streams will follow."

Future Outlook

MobiKwik remains focused on growing its payments business, including wallet and UPI segments, while continuing to recover and strengthen its lending business. The company has optimized its costs, improved contribution margins, and is well-positioned to deliver strong growth and achieve its EBITDA breakeven target in the coming quarters.

As the fintech landscape in India continues to evolve, MobiKwik's performance in the coming quarters will be closely watched by investors and industry observers alike.