One MobiKwik Systems , a prominent player in the fintech space, saw its shares jump 12% amid high trading volumes, breaking a six-day declining streak. The surge came despite the company reporting widening losses for the first quarter of the fiscal year.

Q1 Financial Performance

MobiKwik reported a consolidated loss of ₹41.90 crore for the quarter ended June, a significant increase from the ₹6.60 crore loss recorded in the same period last year. The company's revenue from operations also took a hit, declining 20.7% year-on-year to ₹271.00 crore from ₹342.20 crore.

Sequential Improvement

On a quarter-on-quarter basis, MobiKwik showed some signs of improvement:

• Losses narrowed from ₹56.00 crore in the previous quarter to ₹41.90 crore
• Revenue increased by 1.3% sequentially

Market Performance

The stock's performance has been mixed:

IPO Success and Analyst Outlook

MobiKwik's initial public offering (IPO) was met with overwhelming investor interest:

• Oversubscription: Nearly 120 times
• Funds raised: ₹572.00 crore through fresh share issuance

Despite the recent financial challenges, Dolat Capital Markets maintains a 'Buy' rating on the stock, indicating confidence in the company's long-term prospects.

The surge in MobiKwik's share price, despite the widening losses, suggests that investors may be focusing on the company's sequential improvements and potential for future growth in the competitive fintech sector.

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.