MobiKwik lending disbursals rise 47% as concentration falls

MobiKwik’s Q2 FY27 lending disbursals rose 47% sequentially to Rs 1,082.6 crore after technology migration linked to its lending-business transfer, while the top three lenders’ share of disbursals fell to 71% from 91% a year earlier. The recovery combined restored origination volumes with a broader group of lending partners.

Why did MobiKwik’s lending disbursals rebound in Q2 FY27?

MobiKwik’s disbursals rebounded after the technology migration that caused a temporary Q1 FY27 decline was completed. ZIP EMI disbursals reached Rs 1,082.6 crore in July to September 2026, up 47% quarter on quarter and 34% from Rs 807.1 crore in Q2 FY26. MobiKwik completed the transfer of its digital lending business to its wholly owned subsidiary, MDSPL, in August 2026.

AI-led pre-approved offers were one source of the recovery. MobiKwik said offers based on segmentation of 9.6 crore engaged users generated about Rs 200 crore of Q2 FY27 disbursals, or around 18% of the total. That volume was within management’s stated target range of Rs 150 crore to Rs 250 crore per quarter for the initiative.

The quarter also took disbursals above the Rs 1,000 crore quarterly level MobiKwik had committed to in Q1 FY27. Financial-services revenue rose 42% year on year and 18% sequentially to Rs 86.9 crore, while financial-services gross profit increased 2.2 times year on year to Rs 57.1 crore. The lending recovery therefore coincided with reported growth in both revenue and gross profit.

How much has MobiKwik reduced lender concentration?

MobiKwik reduced reliance on its largest lenders by expanding to 11 lending partners and lowering top-three lender concentration to 71% in Q2 FY27 from 91% a year earlier. The business added two major lending partners, while partners onboarded during H1 FY27 generated 20% to 25% of Q2 disbursals. The comparison shows that more recent partners contributed material volume during the post-transfer recovery.

The reduction in concentration occurred while quarterly disbursals rose to Rs 1,082.6 crore. Management expects concentration to decline further as it diversifies its partner base, but it did not disclose a target share for the three largest lenders. The disclosed 71% measure is therefore a reported position rather than a management target.

The expanded partner base also supports MobiKwik’s planned shift in lending-model mix. Default loss guarantee, or FLDG, accounted for 79% of Q2 FY27 disbursals and distribution accounted for 21%. Management said distribution should gain share over the medium term as newer partners scale and existing partners gain confidence in portfolio performance.

What happened to MobiKwik’s lending margins and costs?

MobiKwik’s financial-services gross margin increased to 65.7% in Q2 FY27 from 59.0% in Q1 FY27 and 41.8% in Q2 FY26, despite a sequential decline in its gross take rate. Financial-services gross profit was Rs 57.1 crore on revenue of Rs 86.9 crore, while disbursals increased 47% sequentially. The margin improvement accompanied lower lending-related expenses rather than a higher reported take rate.

The gross take rate declined to 8.03% in Q2 FY27 from 9.96% in Q1 FY27 because MobiKwik recognises revenue from loans disbursed in a quarter over subsequent quarters. Management said the sharp current-quarter increase in disbursals expanded the denominator before related revenue was fully recognised. Revenue from Q2 disbursals is expected to flow through over the next four quarters.

Management expects the gross take rate to stabilise at around 7% to 8% and the net take rate at around 5% as the book matures. Net financial-services margin was 5.27% of disbursals in Q2 FY27, compared with 3.17% a year earlier and 5.87% in Q1 FY27. Management attributed the quarter-on-quarter moderation to the same timing effect from rapidly higher disbursals.

Lending-related expenses fell 16% year on year to Rs 29.8 crore from Rs 35.7 crore, reducing expenses to 2.76% of disbursals from 4.42% a year earlier. MobiKwik reported credit-risk performance improved by about 22% year on year. Past-book recoveries contributed 1.10% of Q2 disbursals, down from 1.87% in Q1 FY27, and management expects this contribution to reduce gradually as the older book ages.

What risks and capital demands come with MobiKwik’s FLDG model?

MobiKwik’s FLDG-led lending model shares credit outcomes with partner lenders, making portfolio performance and guarantee funding relevant to 79% of Q2 FY27 disbursals. MobiKwik said it operates within the Reserve Bank of India’s 5% cap on default loss guarantees. Management said it will balance FLDG and distribution according to risk-adjusted returns and partner appetite, rather than use a fixed mix target.

The balance sheet showed the funding requirements associated with higher FLDG volumes. Lien-marked fixed deposits stood at Rs 268.3 crore as of September 30, 2026, securing FLDG guarantees and working-capital facilities, and had risen by Rs 36.5 crore from June 2026 as FLDG disbursals increased. Those deposits are encumbered balances, distinct from unrestricted cash available for other uses.

Management said a larger distribution share would improve capital efficiency because it does not require the same guarantee structure. MobiKwik nevertheless remains focused on scaling total disbursals rather than committing to a distribution timeline. Its Q2 FY27 borrower data showed 59% repeat customers, 100% of borrowers with bureau scores of 700 or higher, and 72% of borrowers under 40.

Conclusion

MobiKwik’s Q2 FY27 lending performance shows that the transfer-related disruption had passed while origination sources became less concentrated. AI-led offers, partners added in H1 FY27 and lower lending-related expenses contributed to a quarter in which financial-services revenue grew 42% year on year and gross margin reached 65.7%.

The next measures to watch are whether revenue from Q2 originations supports management’s expected 7% to 8% gross take rate and around 5% net take rate, and whether distribution gains share from the 79% FLDG mix. MobiKwik received its final non-banking financial company registration certificate on November 6, 2026, and management expects to launch the business within three to six months through co-lending with banks and larger non-banking financial companies.