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.

One MobiKwik Systems Limited (NSE: MOBIKWIK, BSE: 544305), India's largest digital wallet provider, announced its financial results for the first quarter ended June 30, 2025 (Q1 FY26). The company reported significant growth in its payments business while showing signs of recovery in its financial services segment.

Key Highlights

• Payments Gross Merchandise Value (GMV) grew 53% year-over-year to ₹383,882.00 million
• Total income increased marginally by 1% to ₹2,816.00 million compared to Q4 FY25
• EBITDA loss narrowed to ₹312.00 million, a 32% improvement quarter-on-quarter
• Registered user base expanded to 180.2 million, with 3.8 million new users added in Q1

Payments Business Performance

MobiKwik's core payments business demonstrated strong growth and resilience:

• Payments GMV reached an all-time high of ₹383,882.00 million, up 53% YoY and 16% QoQ
• Payments gross margin improved to 27.9%, compared to 16.1% in Q1 FY25
• Net payments margin increased to 15 basis points, up from 11 basis points in Q1 FY25

Financial Services Segment

The company's digital finance business showed signs of recovery:

• ZIP EMI (Buy Now Pay Later) disbursals grew 31% QoQ to ₹6,931.00 million
• Financial services gross margin improved to 13.3%, up from 4.3% in Q4 FY25
• Take rates in financial services increased to 8.41% from 7.28% in Q1 FY25

Operational Efficiency

MobiKwik continued to focus on cost optimization:

• Payment gateway and user incentive expenses decreased by 5% QoQ
• Lending-related expenses reduced by 6% QoQ
• Fixed costs remained stable at ₹1,086.00 million

Strategic Developments

The company made progress on several strategic initiatives:

• Secured a stock broking license, expanding its financial services offerings
• Launched 'First Card', an FD-backed RuPay credit card
• Continued development of 'Pocket UPI', aiming to capitalize on UPI growth

Upasana Taku, Executive Director, Co-founder and CFO of MobiKwik, commented, "We are pleased with the consistent progress across our core business. Payments demonstrated strong growth and Financial Services recovered resulting in an improved Q1 EBITDA, which reinforces our path to profitability."

Outlook

MobiKwik expects to achieve EBITDA breakeven in the near future, driven by continued growth in the payments business and recovery in financial services. The company remains focused on driving operating leverage and building long-term value for stakeholders.

As of June 30, 2025, MobiKwik had a merchant base of 4.64 million and maintained its position as the largest digital wallet in India with a 20% market share in PPI wallet gross transaction value.