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.

One Mobikwik Systems (NSE: MOBIKWIK/ BSE:544305), India's largest digital wallet, has announced strong financial results for the first quarter, showcasing significant growth in its payments business and improved profitability metrics.

Record-Breaking Payments Performance

MobiKwik achieved its highest ever quarterly Payments Gross Merchandise Value (GMV) of ₹384.00 billion in Q1, marking a robust 53% year-over-year growth and a 16% increase quarter-over-quarter. This exceptional performance was driven by high user engagement and an expanding user and merchant base. The company's registered user base grew to 180.2 million, while its merchant network expanded to 4.64 million.

Improved Profitability Metrics

The company reported a significant improvement in its gross margin for the payments business, reaching an all-time high of 27.9%. This represents a substantial expansion of 12 percentage points year-over-year and 4 percentage points quarter-over-quarter. The net payments margin was maintained at 15 basis points, underscoring the strength of MobiKwik's platform.

Financial Services Recovery

MobiKwik's financial services segment showed signs of recovery, with ZIP EMI disbursals growing by 31% quarter-over-quarter to reach ₹6,931.00 million. The take rates in this segment improved to 8.4%, contributing to a gross margin increase to 13.3% for financial services.

Overall Financial Performance

For Q1, MobiKwik reported:

The company's EBITDA showed a 32% improvement quarter-over-quarter, driven by enhanced contribution margins and well-controlled fixed costs.

Strategic Developments

MobiKwik continued to invest in adjacent opportunities complementing its core payments and financial services businesses. Notable achievements include:

1. Securing a full Payment Gateway license for its subsidiary, Zaakpay.
2. Obtaining a Stock Broking license, aligning with the company's vision of becoming a comprehensive financial services platform.

Management Commentary

Upasana Taku, Executive Director, Co-founder and CFO of MobiKwik, commented on the results: "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. We remain focused on driving operating leverage and building for long-term value creation."

Outlook

With its strong performance in the payments segment and signs of recovery in financial services, MobiKwik appears well-positioned for continued growth. The company's focus on operational efficiency and strategic expansions into new financial service areas suggest a positive outlook for the coming quarters.

As India's digital financial landscape continues to evolve, MobiKwik's robust user base, expanding merchant network, and diversified product offerings place it at the forefront of the fintech revolution in the country.