One MobiKwik Systems Reports Q1 Loss of Rs 42 Crore Amid Revenue Decline

One MobiKwik Systems has reported a consolidated loss of Rs 41.9 crore for the first quarter of fiscal year 2026, reflecting a significant decline in its high-margin financial services segment. The company, headquartered in Gurugram, indicated that it anticipates a recovery and aims to achieve EBITDA breakeven in the latter half of the fiscal year.

In the same quarter last year, MobiKwik incurred a loss of Rs 6.6 crore. Revenue from operations fell to Rs 271.3 crore, a decrease of 20.7% compared to Rs 342.2 crore in Q1 FY25. Despite these challenges, the firm’s losses narrowed sequentially from Rs 56 crore in the previous quarter, with a slight revenue uptick of 1.3%.

Factors Behind Financial Struggles

The decline in the financial services sector was notable, with revenue plummeting from Rs 170 crore in Q1 FY25 to Rs 58 crore in Q1 FY26. Komal Sharan, Head of Finance, Corporate Development and Investor Relations at MobiKwik, attributed this drop to several factors. These include a general slowdown in the unsecured personal lending market, a strategic pivot away from Buy Now Pay Later (BNPL) products towards more sustainable lending models, and the adoption of new accounting treatments under revised DLG guidelines.

Sharan emphasized that the financial services segment operates at higher margins than the payments business, thus directly impacting the company’s EBITDA performance and overall loss position.

Total expenses for the quarter reached Rs 312.8 crore, down from Rs 343.6 crore a year earlier. Payment gateway costs increased to Rs 142.8 crore, up from Rs 127.6 crore, while employee benefits rose slightly to Rs 41.9 crore from Rs 39.1 crore in the same period last year. The EBITDA loss improved to Rs 31.2 crore, compared to Rs 45.8 crore in the previous quarter.

Outlook and Strategic Initiatives

Upasana Taku, CFO and Co-Founder of MobiKwik, expressed optimism for the future. She stated, “We are expecting that by September, when the one-year impact of the lending-related accounting changes gets seasoned, we will get back to the 40% margin.” Taku highlighted that the company expects to reach breakeven EBITDA in the last two quarters of the ongoing fiscal year.

MobiKwik concluded its IPO during the quarter ending December 31, 2024, and as of June 30, 2025, it has utilized Rs 214 crore of its net IPO funds from a total corpus of Rs 530.5 crore. The funds were allocated towards supporting organic growth in both its financial services and payment services businesses, as well as research and development in data, machine learning, artificial intelligence, and technology.

The company reported achieving its highest-ever quarterly payments Gross Merchandise Value (GMV) at Rs 38,388.2 crore in Q1 FY26. Its user base stands at 180.2 million, with a merchant base of 4.64 million.

Following the announcement, shares of One MobiKwik Systems Ltd closed at Rs 234.35 on the Bombay Stock Exchange, reflecting a decline of 4.60%.