MobiKwik Reports ₹11.8 Cr Profit In Q2, Revenue Rises 9% YoY

Fintech company MobiKwik reported a consolidated net profit of ₹11.8 Cr in the September quarter of FY27 as against a net loss of ₹28.6 Cr a year earlier, supported by revenue growth and lower payment processing and lending operational costs.  

Operating revenue rose 9.4% to ₹295.7 Cr from ₹270.2 Cr in Q2 FY26.

Sequentially, net profit increased 55.4% from ₹7.6 Cr, while operating revenue grew 5.1% from ₹281.5 Cr.

The company said it recorded its highest-ever quarterly net profit and fourth consecutive profitable quarter. 

EBITDA stood at ₹22.7 Cr, compared with an EBITDA loss of ₹6.4 Cr in Q2 FY26 and a profit of ₹15.8 Cr in the June quarter.

Other income declined 22.5% YoY to ₹7.1 Cr. However, total income increased 8.4% to ₹302.8 Cr from ₹279.3 Cr.

Total expenses, including finance costs and depreciation, declined 1.8% YoY to ₹290.9 Cr from ₹296.1 Cr.

Payment processing charges, MobiKwik’s largest expense, fell 10.8% YoY to ₹119.5 Cr from ₹133.9 Cr. Lending operational expenses declined 88.1% to ₹1.5 Cr from ₹12.8 Cr.

The year-ago quarter also included an ₹11.8 Cr exceptional charge related to allegedly fraudulent merchant settlements. There was no exceptional charge in Q2 FY27.

Payments Revenue Remains Flat

MobiKwik’s gross merchandise value (GMV) for the payments vertical, including its payment gateway Zaakpay, grew 35% YoY to ₹59,677 Cr, supported by growth in consumer and merchant payments.

Consumer payments accounted for ₹46,375 Cr, or 77.7%, of overall payments GMV. Merchant payments contributed the remaining 22.3%, up from about 17% a year earlier.

However, the increase in transaction value did not translate into higher payments revenue. Revenue from the business remained largely flat at ₹208.8 Cr as against ₹208.9 Cr in Q2 FY26. 

The company attributed this to a change in transaction mix towards payments that generate lower revenue relative to their value. Its payments take rate – revenue earned as a proportion of GMV – declined to 0.35% from 0.47% a year earlier.

Despite this, direct payments costs fell 12.6% YoY to ₹129 Cr, helping gross profit rise 30% to ₹79.8 Cr. Gross margin expanded to 38.2% from 29.4%.

Lending Disbursals Pick Up

Meanwhile, revenue from MobiKwik’s financial services business, which includes its ZIP EMI credit offering, increased 41.8% YoY to ₹86.9 Cr.

The growth was supported by a 34.1% increase in lending disbursals to ₹1,082.6 Cr. Disbursals also rose 46.9% sequentially from ₹736.7 Cr, recovering from a temporary dip linked to technology infrastructure migration for the transfer of its lending business.

MobiKwik increased its number of major lending partners to 11 from six a year earlier. It counts partners with quarterly disbursals exceeding ₹5 Cr as major lenders.

The company said 21% of disbursals came through its distribution model, while the remaining 79% were under its first-loss default guarantee (FLDG) model, through which it shares credit risk with lending partners and manages loan origination, servicing, and collections.

Lending-related expenses, comprising lending operational and financial guarantee expenses, declined 16.4% YoY to ₹29.8 Cr. The company attributed the reduction to improved credit quality.

Consequently, financial services gross profit more than doubled to ₹57.1 Cr from ₹25.6 Cr, while gross margin expanded to 65.7% from 41.8%.

Higher Margins Offset Costs

While both businesses improved gross margins, MobiKwik’s fixed costs rose 18.3% YoY to ₹121.2 Cr. Employee benefit expenses increased 59% to ₹56.2 Cr.

The company attributed higher employee costs to scaling its merchant business and expanding into new business areas.

Overall, the results highlight the gap between MobiKwik’s payments transaction growth and revenue, while financial services delivered stronger revenue growth. Lower direct costs across both businesses helped offset higher fixed costs and improve profitability.

“We have crossed the ₹1,000 Cr milestone in lending disbursals and clocked 150% year-on-year revenue growth in merchant payments, highlighting the growing scale of our business,” cofounder, MD, and CEO Bipin Preet Singh said.

He added that the company expects operating leverage to improve with greater AI adoption, alongside continued cost optimisation and operating efficiencies.

Shares of MobiKwik ended today’s trading session 5.57% higher at ₹225.70 apiece on the BSE.

The post MobiKwik Reports ₹11.8 Cr Profit In Q2, Revenue Rises 9% YoY appeared first on Inc42 Media.