One Mobikwik Systems has announced its confidence in achieving profitability during the second half of fiscal year 2026. This strategic milestone represents a significant target for the fintech company as it continues to focus on sustainable growth and financial performance.

Profitability Timeline

The company has set a clear timeline for reaching profitability, targeting the second half of FY26 as the period when it expects to achieve this financial milestone. This projection reflects the company's strategic planning and operational improvements aimed at transitioning from growth-focused investments to sustainable profit generation.

Strategic Focus

The profitability target indicates One Mobikwik Systems' commitment to balancing growth initiatives with financial sustainability. The company's confidence in meeting this timeline suggests underlying operational improvements and revenue optimization strategies are being implemented to support this objective.

This announcement provides stakeholders with a clear timeline for the company's expected transition to profitability, marking an important phase in its business development and financial maturity.

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.