MobiKwik Q3 FY26 Results: Fintech Firm Returns to Profitability with ₹4 Crore PAT

One MobiKwik Systems Limited has reported a significant financial turnaround in its third-quarter results for the fiscal year 2026. The company achieved a consolidated profit after tax of ₹4 crore for the quarter ended December 31, 2025. This performance marks a sharp recovery compared to the same period last year, when the firm recorded a loss of ₹55.3 crore. The transition to profitability is attributed to a combination of disciplined execution, cost optimization, and strong growth in the core payments and financial services segments.

Revenue from operations for the quarter grew by 8.3 percent year-on-year to reach ₹297.2 crore. This growth was supported by an all-time high in payments Gross Merchandise Value (GMV) and a surge in UPI transactions. The company's focus on operating efficiency has allowed it to scale its business while simultaneously reducing fixed costs as a percentage of total income. Management noted that the quarter reflects the strength of the company's business fundamentals and its ability to maintain growth momentum while achieving bottom-line stability.

Operational Performance in the Payments Segment

The payments business remains the primary driver of MobiKwik's ecosystem. During Q3 FY26, the payments GMV reached a record high of ₹48,100 crore, representing a 63 percent increase compared to the previous year. This growth has been consistent for twelve consecutive quarters, highlighting the platform's increasing adoption among both consumers and merchants. The company now services approximately 183.5 million registered users and 4.71 million merchants across India.

UPI transactions on the platform saw a massive surge, growing 3.2 times on a year-on-year basis. The company has emerged as one of the top three fastest-growing UPI apps in the Indian ecosystem. The share of UPI in the overall payments business expanded significantly, reflecting the broader digital transformation in the Indian financial landscape. This shift towards UPI has helped the company capture a larger share of the digital payments market while maintaining industry-leading payment gross margins.

Growth in Financial Services and ZIP EMI

The financial services segment, which includes digital credit and lending products, showed robust performance. The ZIP EMI GMV grew by 126 percent year-on-year to reach ₹900 crore. This segment has become a critical contributor to the company's profitability, with the net financial services margin improving to 4.13 percent in Q3 FY26, up from 1.05 percent in the same quarter last year.

By leveraging its large user base, MobiKwik has been able to cross-sell credit products effectively. The digital credit GMV reached ₹807.1 crore in the preceding quarter, and the momentum has continued into Q3. The company's strategic focus on digital lending and insurance verticals is designed to drive the next phase of growth, providing higher-margin revenue streams compared to pure-play payment processing.

Cost Optimization and Efficiency Metrics

A key factor in MobiKwik's return to profitability is its aggressive cost control strategy. The company reduced its fixed costs as a percentage of total income to 38 percent in Q3 FY26, down from 42 percent in Q3 FY25. This reduction reflects improved operational leverage as the company scales its revenue without a proportional increase in overheads. Payment processing charges and lending operational costs were specifically targeted for optimization.

EBITDA for the quarter stood at a positive ₹15 crore, a significant swing from the ₹42.7 crore loss reported in the corresponding quarter of the previous year. This improvement of ₹57.7 crore in EBITDA highlights the effectiveness of the company's disciplined execution. The management emphasized that thoughtful scaling and a focus on sustainable profitability remain the core pillars of their current strategy.

Comparative Financial Summary

The following table summarizes the key financial metrics for Q3 FY26 compared to the previous year's performance:

Peer Comparison in the Fintech Sector

MobiKwik operates in a highly competitive environment alongside major players like One 97 Communications (Paytm) and PB Fintech (PolicyBazaar). While some peers have larger market capitalizations, MobiKwik's recent move into profitability places it in a selective group of fintech firms achieving positive bottom-line results.

Update on Fraud Recovery and IPO Proceeds

The company provided an update regarding a fraud incident reported in Q2 FY26. MobiKwik has successfully recovered ₹27.9 crore of the alleged fraudulent claims. The remaining balance of ₹11.8 crore has been fully provided for in the accounts, and the company continues to pursue the recovery of these funds. An independent advisory firm is currently reviewing the incident report to prevent future occurrences.

Regarding its capital position, the company still holds ₹218.15 crore of unutilized IPO proceeds as of December 31, 2025. These funds are expected to be deployed for future growth initiatives, including the expansion of digital lending and the enhancement of the UPI ecosystem. The company's healthy cash position provides a buffer for strategic investments in technology and market expansion.

Market Impact and Future Outlook

The announcement of profitability led to a positive sentiment in the market, although the stock has faced volatility in recent months. As of early February 2026, the stock was trading around the ₹198 to ₹213 range. Investors are closely monitoring the company's ability to maintain this profitable streak, especially given the 8 percent decline in consolidated revenue observed over the nine-month period ending December 2025.

Management remains optimistic about the future, focusing on accelerating their play in UPI and digital lending. The goal is to leverage the company's improved contribution margins and cost discipline to drive sustainable long-term growth. With the payments segment reaching new highs and the financial services margin expanding, the company is positioned to capitalize on the increasing digitization of the Indian economy.

Conclusion

MobiKwik's Q3 FY26 results represent a pivotal moment for the fintech firm. By swinging from a heavy loss to a ₹4 crore profit, the company has demonstrated that its business model can achieve sustainability. While challenges remain, particularly regarding long-term revenue growth and the resolution of past fraud incidents, the current trajectory suggests a focus on operational excellence. Shareholders will be looking for continued consistency in profitability in the coming quarters as the company utilizes its remaining IPO proceeds to scale its high-margin lending business.