Fintech company MobiKwik experiences a sixfold increase in losses, reporting a loss of Rs 42 crore in Q1 FY26.
MobiKwik Reports Q1 FY26 Results: Focus Shifts Towards Longer-Term Lending and New Initiatives
Indian fintech platform MobiKwik has released its financial results for the first quarter of the fiscal year 2026 (Q1 FY26), revealing a net loss and a decline in total income compared to the same period the previous year.
The company's total income decreased by 18.6% year-on-year to Rs 281.6 crore, with a net loss of Rs 41.9 crore, a significant increase from Rs 6.6 crore in Q1 FY25. This decline can be attributed to various factors, including the contraction in MobiKwik's digital credit business and a fall in revenue from financial services.
Revenue from operations fell 20.7% to Rs 271.4 crore, while revenue from financial services plummeted 65.8% to Rs 58.3 crore. The smaller-ticket ZIP product has been discontinued due to macroeconomic challenges.
However, there are signs of growth in other areas. The payments segment, which now contributes 76% of total income, saw a 24.2% year-on-year increase, reaching Rs 213.1 crore. Gross payment margins in the payments segment expanded to a record 28%. Payments GMV (gross merchandise value) surged 53% YoY to Rs 38,388 crore.
In an effort to attract lending partners and cater to underbanked users in smaller cities, MobiKwik is piloting a PIN-less UPI product, "Pocket UPI." The company is also focusing on longer-tenure ZIP EMI loans under the Default Loss Guarantee (DLG) model, where MobiKwik bears part of the credit risk.
The contraction in MobiKwik's digital credit business is attributed to muted lender appetite and a strategic pivot away from short-tenure ZIP credit products. The DLG model front-loads guarantee costs, which were Rs 21.4 crore in Q1, up from Rs 2.5 crore a year ago.
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. Net payments margin held steady at 15 basis points.
MobiKwik expects its operating performance in the lending segment to return to previous levels, approximately 40% gross margin in lending, by H2 FY26. The company has not publicly announced specific banks or financial institutions as partners for its ZIP EMI Loans under the Default Loss Guarantee model based on available search results.
In addition to these developments, MobiKwik has 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. The company ended the quarter with 18 crore registered users and 46.4 lakh merchants.
Despite the challenges, MobiKwik remains optimistic about its future and is continuing to innovate and adapt to the changing financial landscape in India.
