MobiKwik Reports Significant EBITDA Improvement in Q2 FY2026, Edges Closer to Profitability

One Mobikwik Systems , one of India's leading fintech companies, has reported substantial operational improvements in its Q2 FY2026 results, marking a significant step towards profitability. The company's financial performance showcases its strategic focus on operational efficiency and growth in key business segments.

Financial Highlights

MobiKwik delivered steady total income of ₹279.00 crores in Q2 FY2026, while achieving remarkable improvements in its operational metrics:

Metric	Q2 FY2026	Change
EBITDA	-₹6.40 crores	80% improvement
Direct Costs	-	10% decrease
Contribution Margin	34%	-
Fixed Costs	-	5.7% decrease QoQ

The company's EBITDA saw a substantial upswing of ₹25.00 crores, improving from -₹31.00 crores in the previous quarter to -₹6.40 crores in Q2 FY2026.

Business Segment Performance

Payments Business

MobiKwik's payments business demonstrated robust performance:

Metric	Q2 FY2026	Q1 FY2026
Gross Profit	₹61.00 crores	₹59.00 crores
Margins	29.40%	27.90%

The company has emerged as one of the top three fastest-growing UPI apps in India, with UPI transactions accounting for approximately 40% of its Gross Merchandise Value (GMV). The remaining 60% comprises wallet and bill payments, which generate revenue for the company.

Lending Business

The lending segment showed promising growth with significant cost optimization:

Metric	Q2 FY2026	Q1 FY2026
Direct Costs (% of Disbursal)	4.40%	7.30%

MobiKwik operates 80% of its disbursals under the Digital Lending Gateway (DLG) model and 20% through distribution, maintaining about 3% profit from the lending business.

Strategic Developments

Fraud Incident: The company faced a fraud incident on September 12 due to a technical bug. MobiKwik has recovered 70% of the losses and made provisions for the balance.
Risk Management: In response to the incident, MobiKwik has enhanced its controls and plans to bring enterprise risk under a new Chief Risk Officer (CRO).
Product Expansion: The company has introduced loans against mutual funds and is exploring potential partnerships for gold loan distribution.

Future Outlook

MobiKwik's management expressed confidence in the company's trajectory towards profitability. The significant EBITDA improvement, coupled with strategic cost management and growth in key business segments, positions the company favorably for future quarters.

As MobiKwik continues to innovate and expand its financial services offerings, it aims to capitalize on the growing digital payments and lending market in India, while maintaining a focus on operational efficiency and risk management.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.77%	-7.06%	-11.72%	+1.24%	-53.51%	-53.51%

One Mobikwik Systems (NSE: MOBIKWIK, BSE: 544305), India's largest digital wallet provider, has announced its financial results for the second quarter, showcasing significant improvements in key metrics and operational efficiency.

Financial Highlights

Total income remained stable at ₹2,793.27 crore in Q2
EBITDA improved by 80% quarter-on-quarter, narrowing the loss to ₹63.76 crore
Contribution profit increased by 24% QoQ to ₹961.00 crore
Payments GMV grew by 53% year-on-year and 13% QoQ
Financial Services Gross Profit climbed 231% QoQ

Operational Performance

MobiKwik continued to strengthen its position in the digital payments and financial services sector:

Ranked as the #1 PPI Wallet in India
Among the top 3 fastest-growing UPI apps, with 3.5x YoY growth in UPI transactions
User base expanded to 183.5 million, with 3.3 million new users added in Q2
Merchant base reached 4.71 million, with 71,000 new additions

Segment-wise Performance

Payments Business

Payments GMV reached a record high, growing 53% YoY and 13% QoQ
Gross Margin for payments business hit an all-time high of 29.4%
Net Payments processing margin maintained at 0.14%

Financial Services

ZIP EMI GMV grew 16% QoQ, regaining prior highs
Financial Services Gross Margin improved significantly to 41.8%
Lending-related expenses reduced to 4.4% of GMV from 7.3% in the previous quarter

Strategic Developments

Digital Rupee Launch: MobiKwik became one of the first fintechs to fully roll out Digital Rupee (e₹) transactions in partnership with the RBI.
FX Retail Platform: Launched the FX Retail platform in collaboration with NBBL and RBI, enabling seamless currency booking and card top-ups.
Stock Broking License: Received SEBI approval for stock broking activities, expanding its financial services portfolio.
AI-Powered Innovations: Introduced AI-driven product innovations to enhance user experience and operational efficiency.

Management Commentary

Upasana Taku, Chairperson, Executive Director, and CFO of MobiKwik, stated, "Our performance this quarter reflects the strength of our business fundamentals and focus on sustainable profitability. The growth in contribution profit and improvement in EBITDA is a result of disciplined cost optimization and steady gains across both payments and lending."

Challenges and Outlook

While MobiKwik demonstrated strong performance improvements, the company faced a technical security breach in September, resulting in unauthorized transactions estimated at ₹40.00 crore. The company has secured around 71% of the impacted amount and provided for the remaining 29% in its financial results.

Looking ahead, MobiKwik aims to accelerate its presence in UPI and digital lending to drive the next phase of growth, leveraging its strong market position and expanding service offerings.

As MobiKwik continues to innovate and expand its financial services ecosystem, investors and stakeholders will be watching closely to see if the company can maintain its growth trajectory and achieve sustained profitability in the coming quarters.