Finance company MobiKwik experiences a 6-fold increase in losses, reaching INR 42 crores in the initial quarter of FY26.
MobiKwik Reports Q1 FY26 Results: Focus Shifts Towards Longer-Term Lending and New Ventures
MobiKwik, the Gurugram-based fintech platform, has announced its Q1 FY26 results, revealing a shift in focus towards longer-term ZIP EMI loans under the Default Loss Guarantee (DLG) model and new ventures.
The net loss for the quarter increased significantly, reaching Rs 41.9 crore, a marked contrast to the Rs 6.6 crore net profit recorded in the same quarter last year. The sharp deterioration in profitability was largely attributed to a contraction in MobiKwik's digital credit business.
Despite the challenging financial landscape, the payments segment continued to perform robustly. Revenue from this segment climbed 24.2% year-on-year to Rs 213.1 crore, accounting for 76% of total income, up from 50% a year earlier. Gross payment margins in the payments segment expanded to a record 28%.
Total expenses declined 9% YoY to Rs 312.8 crore, aided by cost optimizations in user incentives and payment gateway charges. The net loss narrowed from Rs 56 crore in the previous quarter, and the EBITDA loss improved from Rs 45.8 crore on a sequential basis.
Revenue from financial services plummeted 65.8% to Rs 58.3 crore, primarily due to the discontinuation of the smaller-ticket ZIP product in response to macroeconomic challenges. On a positive note, MobiKwik secured regulatory approvals to operate as a stockbroker and clearing member via a wholly owned subsidiary and launched a new fixed deposit-backed RuPay credit card.
MobiKwik is also piloting a PIN-less UPI product, 'Pocket UPI,' targeting underbanked users in smaller cities. The company expects its operating performance in the lending segment to return to previous levels (approximately 40% gross margin) by H2 FY26.
The DLG model front-loads guarantee costs, which were Rs 21.4 crore in Q1, up from Rs 2.5 crore a year ago. Lending-related operational expenses fell to Rs 29.2 crore, from Rs 92.4 crore a year ago.
Payments GMV (gross merchandise value) surged 53% YoY to Rs 38,388 crore. MobiKwik ended the quarter with 18 crore registered users and 46.4 lakh merchants.
In other news, Kestra Medical Technologies, a US-based company, reported a significant increase in net loss during the first quarter of fiscal year 2026, reaching a GAAP net loss of $25.8 million. The company introduced the ASSURE® wearable medical device system as its new offering.
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