MobiKwik's Q3 FY26: A Profitable Turnaround Driven by Payments and Financial Services

One MobiKwik Systems Limited has announced a significant milestone for Q3 FY26, reporting both EBITDA and PAT profitability. This achievement marks a crucial inflection point for the company, fulfilling its commitment to turn profitable in the second half of the fiscal year ahead of schedule. The digital payments and financial services firm posted a PAT of INR 4 crore and an EBITDA of INR 15 crore, reflecting a substantial year-on-year swing of INR 59.3 crore and INR 57.6 crore, respectively. This strong performance is attributed to disciplined execution, robust growth across its core business verticals, and effective cost optimization strategies.

The company's total income for the quarter stood at INR 297.22 crore, with Payments contributing the lion's share at INR 223.75 crore (75.28%), followed by Financial Services at INR 65.20 crore (21.94%), and Other Income at INR 8.27 crore (2.78%). This balanced growth profile underscores MobiKwik's ability to leverage its diverse offerings to drive revenue. The contribution profit surged 76% year-on-year to INR 128.8 crore, demonstrating enhanced operating leverage and stringent cost discipline.

Payments Business: Sustained Growth and Monetization

MobiKwik's core payments business continued its strong growth trajectory, with Payments GMV reaching an all-time high of INR 48,100 crore. This marks the 12th consecutive quarter of record-high GMV, reflecting sustained user engagement and merchant adoption. The company's UPI transactions surged 3.2 times year-on-year, positioning MobiKwik among the top 5 fastest-growing UPI apps in India. Furthermore, MobiKwik maintains its leadership as the #1 PPI Wallet in India, with an 18% market share of the PPI wallet gross transaction value as of December 2025.

Despite the competitive landscape and the nature of UPI transactions, which are not directly monetized, MobiKwik has successfully expanded its payments revenue by 7% quarter-on-quarter and 14% year-on-year. This growth is primarily driven by wallet and bill payment services, where the company effectively generates revenue through convenience fees and MDR. The net payments processing margin stood at a best-in-class 17 basis points, reflecting improved monetization beyond UPI. Consequently, the gross margin for the payments business reached an all-time high of 37.2%, expanding 125% year-on-year and 36% quarter-on-quarter.

Financial Services: A Remarkable Turnaround

The financial services business has undergone a significant turnaround, delivering high-quality revenue on the back of enhanced credit quality and collection efficiency. The ZIP EMI GMV, a key indicator for its lending business, grew 126% year-on-year and 12% quarter-on-quarter, reaching an all-time high of INR 900 crore. This surpasses previous peak levels and signifies a full recovery from the interim slowdown.

Financial services Gross Profit soared to INR 37.2 crore, marking an impressive 405% year-on-year and 45% quarter-on-quarter growth. The net financial services margin quadrupled year-on-year from 1.05% in Q3 FY25 to 4.13% in Q3 FY26, a testament to the improved credit quality and operational discipline. The company employs a diversified credit offering strategy, utilizing both an FLDG model for moderate-ROI, short-tenure loans and a Distribution/Marketplace model for larger-ticket, longer-tenure loans, allowing for risk-aligned growth.

Strategic Initiatives and Future Outlook

MobiKwik is actively building new moats, particularly in its merchant business. The offline acquisition strategy, focusing on EDC and Soundbox rentals, has seen its geographical footprint expand 3X from 366 to 1,118 cities, with EDC GMV growing 7X within one year. The online acquisition arm, Zaakpay, an RBI-licensed Payment Aggregator, has also demonstrated significant growth in GMV, revenue, and active merchants. Management expects the merchant business to achieve breakeven within the next 2-3 quarters.

Furthermore, the company is deepening user engagement with wealth offerings, including Personal Finance Management (Lens), Wealth Management (Bonds, FDs, Mutual Funds, Digital Gold), and Money Tracking Solutions. While these offerings are not expected to significantly monetize in the short to midterm, they contribute to a holistic financial ecosystem for users. MobiKwik has also strengthened its governance by appointing Mr. Navdeep Singh Suri as Board Chairman and Mr. Radhakrishna Nair as an Independent Director, aligning with NIFTY 500 governance benchmarks.

In conclusion, MobiKwik's Q3 FY26 results highlight a successful transition to profitability, driven by robust growth in its payments and financial services segments, coupled with stringent cost controls and strategic adaptations. The company's focus on sustainable growth, enhanced credit quality, and disciplined execution positions it favorably to continue scaling its platform and strengthening its role in enabling digital financial access across Bharat.