One MobiKwik Systems has achieved a significant milestone by turning PAT profitable in Q3FY26, reporting consolidated net profit of ₹40.48 million compared to a loss of ₹552.84 million in the corresponding quarter of the previous year. The digital payments and financial services company demonstrated strong operational improvements with revenue growth of 8% YoY to ₹2,972.20 million and a remarkable EBITDA turnaround.

Strong Financial Performance and Profitability Turnaround

The company delivered exceptional financial results for the quarter ended December 31, 2025, with total income reaching ₹2,972.20 million compared to ₹2,744.69 million in Q3FY25. EBITDA turned positive at ₹149.72 million versus a loss of ₹426.72 million in the same quarter last year, representing a significant improvement of ₹576 million YoY.

Business Segment Performance

The company's payments business achieved record performance with Payments GMV hitting an all-time high of ₹481 billion, growing 63% YoY. UPI transactions surged 3.2x YoY, positioning the company among the top 5 fastest-growing UPI apps in India's ecosystem. The user base expanded to 186.6 million with merchant base reaching 4.79 million.

Financial Services business showed strong recovery with ZIP EMI GMV growing 126% YoY to ₹9,000 million, reaching an all-time high. Financial services gross profit increased 405% YoY to ₹372 million, with net FS margin improving from 1.05% in Q3FY25 to 4.13% in Q3FY26.

Management Commentary and Strategic Focus

During the earnings call held on February 03, 2026, CEO Bipin Preet Singh highlighted the company's commitment to delivering profitability in the second half of FY26. "I am delighted to report that we have delivered both EBITDA and PAT profitability in Q3 FY26," Singh stated. The management emphasized their risk-first approach in digital lending and focus on sustainable growth over growth at all costs.

CFO Upasana Rupkrishtan Taku noted that 80% of current quarter's disbursal comes from FLDG business while 20% represents distribution-led risk-free business. The company expects sustainable net payments margin between 12-15 basis points despite achieving 17 basis points in Q3FY26.

Operational Efficiency and Cost Management

The company demonstrated improved operational discipline with contribution profit increasing 76% YoY to ₹1,288 million. Fixed costs as a percentage of total income reduced to 38% in Q3FY26 from 42% in Q3FY25, reflecting enhanced cost management. Total expenses decreased to ₹2,822.48 million from ₹3,171.41 million in the previous year's corresponding quarter.

Lending-related expenses came down 57% YoY, demonstrating the company's enhanced credit quality and collection efficiency. The management indicated they are reaching a more stable operating model with sustainable margins across both payments and financial services segments.

Strategic Positioning and Market Leadership

One MobiKwik Systems maintained its position as India's largest digital wallet with 18% market share of PPI wallet gross transaction value. The company ranked as the #7 largest Customer Operating Unit in the BBPS ecosystem and achieved best-in-class net payments processing margin of 17 basis points. The payments business gross margin reached an all-time high of 37%, reflecting improved monetization beyond UPI services.

The company is also expanding its merchant acquiring business, scaling from 366 cities to 1,118 cities, focusing on Tier 2 and Tier 3 markets for offline merchant acquisition while building its online payment aggregator business through wholly-owned subsidiary Zaakpay.

One MobiKwik Systems Limited has filed its quarterly monitoring agency report for Q3FY26, providing detailed insights into the utilization of proceeds from its Rs. 572 crore Initial Public Offer (IPO). The report, prepared by CARE Ratings Limited and dated February 03, 2026, covers the quarter ended December 31, 2025.

IPO Proceeds Utilization Overview

The monitoring agency report reveals that the company has utilized Rs. 347.71 crore out of the total Rs. 572 crore raised through its IPO, leaving Rs. 224.29 crore unutilized as of December 31, 2025. The IPO was conducted from December 11, 2024 to December 13, 2024, with equity shares being the specified securities offered.

Object-wise Fund Deployment

The company's IPO proceeds were allocated across six specific objectives, with varying levels of utilization reported for Q3FY26:

Quarterly Utilization Activities

During Q3FY26, the company deployed funds across multiple objectives. For financial services business growth, Rs. 7.44 crore was utilized to provide First Loss Default Guarantee (FLDG) to lending partners. The payment services business received Rs. 9.86 crore for marketing activities focused on customer acquisition and banking operations.

The research and development segment saw significant investment of Rs. 16.04 crore during the quarter, utilized for payroll and technology development as per submitted invoices. Capital expenditure for payment devices business consumed Rs. 3.65 crore for device purchases, while IPO-related expenses accounted for Rs. 0.68 crore during the quarter.

Fund Deployment and Investment Strategy

The unutilized proceeds of Rs. 224.29 crore are strategically deployed across different instruments to ensure capital preservation and earning potential:

The company has placed the majority of unutilized funds in fixed deposits with scheduled commercial banks, including HDFC Bank, Kotak Bank, and Axis Bank, earning returns ranging from 5.25% to 7.80%.

Compliance and Monitoring Assessment

CARE Ratings Limited, serving as the monitoring agency, confirmed that all IPO proceeds have been utilized appropriately for the objectives mentioned in the offer document. The report indicates no material deviations from expenditures disclosed in the offer document, with no changes in the means of finance for disclosed objects.

However, the monitoring agency noted some concerns, including delays in utilizing proceeds toward general corporate purposes and reported losses by the company till Q2FY2026 due to changes in industry and regulatory landscape. The agency anticipates that utilization toward certain objectives may spill over beyond FY2026, despite the original timeline stipulated in the offer document.

The monitoring agency's assessment confirms the company's adherence to regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.