MobiKwik Q4 FY26 profit: stock slips 5% on FY loss

Stock reaction: profit quarter, but shares fall

One MobiKwik Systems fell 5.03% to Rs 216 after reporting a profitable March quarter (Q4 FY26). The decline suggested investors focused on the company’s full-year net loss and its plan to keep investing in newer business lines. The company operates a digital payments and financial services platform spanning wallet, UPI, payment gateway, lending and investment products. It reported that it serves over 189.6 million registered users and 4.92 million merchants in India. The earnings were first published on May 12, 2026 at 12:50 PM IST.

Q4 FY26: PAT turns positive

MobiKwik reported consolidated profit after tax (PAT) of Rs 4.4 crore in Q4 FY26, compared with a loss of Rs 56 crore in Q4 FY25. That translates into a positive swing of Rs 60.4 crore year-on-year. On a sequential basis, PAT improved from Rs 4.1 crore in Q3 FY26. The quarter also marked improving profitability metrics at multiple levels, even as the market reaction stayed cautious.

Revenue and income trend in the quarter

Total income rose 6.3% year-on-year to Rs 296.0 crore in Q4 FY26, up from Rs 278.5 crore in Q4 FY25. However, income slipped 0.4% sequentially from Rs 297.2 crore in Q3 FY26. The sequential softness in income came despite continued scale-up in payments GMV, showing that income growth and GMV growth did not move in lockstep for the quarter.

Contribution profit and margin expansion

Contribution profit surged 112.3% year-on-year to Rs 135.1 crore in Q4 FY26 from Rs 63.6 crore in Q4 FY25. Contribution margin expanded to 46% from 23% a year ago. It also improved sequentially from 43% in Q3 FY26. The contribution margin improvement was a key operational highlight, alongside cost ratio reductions in parts of the payments stack.

EBITDA turns positive for the second straight quarter

EBITDA stood at Rs 17.4 crore in Q4 FY26 versus an EBITDA loss of Rs 45.8 crore in Q4 FY25, marking a positive swing. Sequentially, EBITDA rose 16.2% from Rs 14.9 crore in Q3 FY26. The company said this was its second consecutive profitable quarter at the EBITDA level. Fixed costs were Rs 117.7 crore in Q4 FY26 compared with Rs 109.4 crore in Q4 FY25, while fixed costs as a percentage of total income were broadly stable at 40% versus 39%.

Cost metrics: payment gateway and incentives

MobiKwik reported lower cost ratios on two key line items linked to payments GMV. Payment gateway cost declined to 0.23% of payment GMV in Q4 FY26 from 0.44% in Q4 FY25. User incentive cost reduced to 0.02% of payment GMV from 0.04% in Q4 FY25. These changes aligned with the sharp improvement in contribution margin.

Operating momentum: payments GMV and ZIP EMI

Payments GMV increased 58% year-on-year to Rs 52,400 crore in Q4 FY26 from Rs 33,100 crore in Q4 FY25. It also rose 9% sequentially. The company said payments GMV reached an all-time high for the 13th consecutive quarter.

ZIP EMI GMV grew 58.9% year-on-year to Rs 837.7 crore in Q4 FY26. MobiKwik said the disbursal mix for ZIP EMI was 75% in the First Loss Default Guarantee (FLDG) model and 25% in the distribution model.

Financial services: higher revenue and sharp gross profit jump

Financial services revenue grew 37% year-on-year and 18% sequentially to Rs 77.1 crore in Q4 FY26. The company also reported that financial services gross profit surged 1,775% year-on-year to Rs 45.1 crore. The jump in gross profit was one of the sharpest movements disclosed in the quarter’s segment metrics.

FY26 snapshot: losses narrow, but net loss persists

For FY26, total income declined 3.2% year-on-year to Rs 1,154.2 crore from Rs 1,192.5 crore in FY25. Contribution profit rose 20.9% to Rs 437.4 crore from Rs 361.6 crore. FY26 EBITDA loss narrowed to Rs 5.2 crore from Rs 79.4 crore in FY25. Net loss reduced to Rs 62.1 crore from Rs 121.5 crore.

The company said its core consumer payments and lending business generated positive EBITDA of Rs 49.5 crore in FY26. But it also invested Rs 54.7 crore during the year to build its merchant payments business, which it expects to scale significantly by FY28.

Cash flow and investment posture

Net cash used in operating activities was Rs 78.14 crore in FY26, compared with Rs 68.16 crore in FY25, reflecting a higher cash outflow. MobiKwik said it expects to remain baseline profitable while continuing investments in merchant acquiring, NBFC-led lending and AI-driven products. The guidance emphasised continued spending even after an improving EBITDA profile.

IPO funds utilisation: earlier disclosure

In a separate disclosure for Q1 FY26, the company said it had used Rs 214 crore of its net IPO proceeds as of June 30, 2025, out of a total corpus of Rs 530.5 crore. It listed uses including financial services business (Rs 45.9 crore), payment services business (Rs 69.9 crore), and R&D in data, machine learning, artificial intelligence, product and technology (Rs 30.8 crore). It also disclosed capital expenditure for payment devices business (Rs 2.4 crore) and general corporate purposes.

Key numbers at a glance

Market impact and why investors stayed cautious

The quarter showed a clear improvement in profitability, with both PAT and EBITDA positive and contribution margin at 46%. Still, the stock reaction indicated that the market weighed the full-year net loss of Rs 62.1 crore and the expectation of continued investments. Investors also tracked operating cash outflow, which increased to Rs 78.14 crore in FY26. The company’s plan to invest further in merchant acquiring, NBFC-led lending and AI-driven products added another layer of uncertainty around near-term cash needs, even as operating metrics such as payments GMV remained strong.

Upcoming earnings date

The provided data also listed an upcoming earnings date of May 12, 2026 for Q4 FY26-27.