Mobikwik records third straight profitable quarter, signalling a shift towards sustainable earnings as revenues and gross merchandise value hit new highs; company aims for full-year profitability by FY27 amidst operational reshaping and strategic growth initiatives.
One Mobikwik Systems has reported its third straight profitable quarter, with profit after tax of ₹7.6 crore in the June quarter and management saying the company is now on a clearer path towards full-year profitability in FY27. In the latest earnings call, the digital payments and lending platform said platform gross merchandise value touched a record ₹5,87,000 crore, up 50% from a year earlier, while payments gross profit rose 31% and financial services gross profit jumped 5.6 times. The company also said direct costs fell 21% year on year, helping offset pressure from a mix shift towards lower-margin products.
The result matters because it suggests Mobikwik is finally converting scale into earnings, not just transaction growth. That follows a better run in the previous quarter as well: analysts tracking the March quarter noted back-to-back profits, a record payments GMV and the highest quarterly gross margin in financial services. ICICI Direct also flagged a sharp turnaround in the fourth quarter of FY26, when the company moved back into profit and posted much stronger EBITDA. Together, the numbers point to a business that is still volatile, but more disciplined than it was a year ago.
Management is still dealing with some clear headwinds. Payments revenue growth remains subdued because higher-yield categories such as rent and education were paused under regulatory pressure, and the company says those lines should return in the second quarter. UPI continues to drive transaction volumes, but it is not yet meaningfully monetised, which has put pressure on take rates. The company said UPI GMV was ₹2,690 crore in the quarter, while non-UPI GMV made up the rest of the platform’s turnover.
The lending arm is also being reshaped. Disbursals have fallen for two consecutive quarters as Mobikwik reduced concentration among its top lenders and worked through the operational changes required for its NBFC structure. Management said the current lending mix is 32% pure distribution and 68% first-loss default guarantee business, with a target closer to 40:60 by year-end. It is aiming for a quarterly lending run rate of ₹1,000 crore, supported by new partners, new products and an in-house AI engine designed to reduce drop-offs in the loan journey.
For investors and users, the bigger takeaway is that Mobikwik is trying to build a more balanced business: payments for scale, lending for margins and merchants for long-term growth. That merchant push is still costing money, with management saying it may not break even until FY28, but the company has enough cash on hand and says it has a sizeable tax shield from earlier losses. The near-term question is whether the stronger first quarter can be sustained as lower-margin UPI volume rises and the company works through its next phase of growth.
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