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

1. Digital Rupee Launch: MobiKwik became one of the first fintechs to fully roll out Digital Rupee (e₹) transactions in partnership with the RBI.

2. FX Retail Platform: Launched the FX Retail platform in collaboration with NBBL and RBI, enabling seamless currency booking and card top-ups.

3. Stock Broking License: Received SEBI approval for stock broking activities, expanding its financial services portfolio.

4. 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.

One Mobikwik Systems Limited, a leading fintech company, has reported significant improvement in its quarterly results for Q2 FY2025, despite facing challenges including a fraud incident.

Financial Performance

MobiKwik achieved the following key financial metrics:

• EBITDA improved 80% quarter-on-quarter to negative ₹64.00 crore from negative ₹312.00 crore in Q1.
• Record payment GMV of ₹432.00 billion, representing 53% year-on-year growth and 13% quarter-on-quarter increase.
• Total revenue remained stable at ₹2,793.00 crore.
• Contribution margin expanded to 34.4% from 27.5% in the previous quarter.
• Payments business maintained gross margins of 29.4%.
• Financial services gross margins improved significantly to 41.8% from 13.3%.

However, the company reported a consolidated net loss of ₹286.00 million for the quarter ended September 30, 2025, compared to a loss of ₹36.00 million in the same period last year.

Operational Highlights

• UPI transactions showed 3.5x year-on-year growth, with the company ranking among top 3 fastest growing UPI apps in India.
• Onboarded 3.3 million new users during the quarter, reaching 183.5 million registered users.
• Launched new products including FX Retail platform in partnership with NBBL and RBI.
• Became among the first fintechs to fully roll out Digital Rupee transactions.
• Received SEBI approval for stock broking services through its Zaakpay platform.

Fraud Incident and Recovery Efforts

On September 13, 2025, MobiKwik filed an FIR regarding a fraud incident:

• Merchants in Haryana's Nuh and Mewat regions exploited a technical bug, resulting in fraudulent claims of ₹403.59 million.
• The company has successfully recovered ₹219.27 million.
• Secured an additional ₹66.02 million through court orders.
• Provided for the remaining ₹118.30 million under exceptional items.
• Appointed a reputed advisory firm to conduct an independent incident report.

Future Focus

MobiKwik continues to focus on its core business areas:

• Financial services
• Payment services
• Research and development in data, machine learning, and artificial intelligence
• Capital expenditure for payment devices

The company is utilizing the proceeds from its IPO to fund these growth initiatives.

Despite the challenges faced, MobiKwik's strong performance in key areas such as payment volumes and user growth, along with its swift action in addressing the fraud incident, demonstrates the company's resilience in the fintech sector.