Fintech startup One Mobikwik Systems, which operates payments and financial services company Mobikwik, remained in the red as its net loss widened over six-fold to Rs 41.9 crore for the June quarter, from Rs 6.6 crore in the same period last year.
The Peak XV-backed company also reported a 20.7% year-on-year decline in operating revenue to Rs 271.3 crore.
Mobikwik’s performance was impacted by a sharp slowdown in its financial services segment, with revenue plunging 65% year-on-year, from Rs 170.7 crore in Q1 FY25 to Rs 58.3 crore in Q1 FY26.
A sharp rise in financial guarantee expenses also contributed to the widening of the net loss, with these costs surging nearly ten-fold to Rs 21.3 crore in Q1 FY26 from Rs 2.5 crore a year earlier.
Citing macroeconomic headwinds and a broader slowdown in unsecured lending, the company discontinued its smaller-ticket Zip loans, a high-margin buy-now-pay-later product, earlier this year. Mobikwik said it is now focused on scaling the longer-tenure, larger-ticket Zip EMI product under both the default loss guarantee (DLG) and risk-free distribution models. Disbursals through Zip EMI touched Rs 693.1 crore during the quarter.
In a letter to shareholders, the company also cited changes in DLG-related accounting, which required front-loading of costs and recognition of lower revenue in initial quarters after loan disbursals, further impacting margins.
“We are concentrating on the longer tenure and larger ticket size ZIP EMI product under both the DLG model and the risk-free distribution. We have discontinued the smaller-ticket ZIP product due to macroeconomic challenges and a slowdown in that segment,” the company said in the letter. “However, we are seeing this trend normalise and believe that Ǫ4 FY25 marked the bottoming-out phase. We expect operating performance to return to previous levels, that is ~40% gross margin in lending by H2 FY26.”
Mobikwik’s total expenses declined 9% year-on-year to Rs 312.8 crore in the quarter, largely due to a significant drop in lending-related costs. Lending operational expenses fell to Rs 29.1 crore in Q1 FY26 from Rs 92.3 crore a year earlier. However, payment gateway and employee benefit costs rose 12% and 7%, respectively, on a year-on-year basis.
Mobikwik’s stock has declined over 45% from its listing price of Rs 440 in December 2024. On Friday, it was trading at Rs 241.4 on the BSE at 10:14 AM, with a market capitalisation of Rs 1,886.9 crore.
For the full financial year ended March 2025, the Gurugram-based company had reported a net loss of Rs 122 crore, against a profit of Rs 9.3 crore in FY24.
While lending revenue took a hit, Mobikwik’s payments business showed strong momentum. Gross merchandise value (GMV) from payments rose to Rs 38,388 crore in Q1 FY26 from Rs 25,080 crore a year earlier, supported by continued user growth and merchant expansion. As of June 2025, the platform had 180.2 million registered users and 4.6 million merchants.
The Peak XV-backed company also reported a 20.7% year-on-year decline in operating revenue to Rs 271.3 crore.
Mobikwik’s performance was impacted by a sharp slowdown in its financial services segment, with revenue plunging 65% year-on-year, from Rs 170.7 crore in Q1 FY25 to Rs 58.3 crore in Q1 FY26.
A sharp rise in financial guarantee expenses also contributed to the widening of the net loss, with these costs surging nearly ten-fold to Rs 21.3 crore in Q1 FY26 from Rs 2.5 crore a year earlier.
Citing macroeconomic headwinds and a broader slowdown in unsecured lending, the company discontinued its smaller-ticket Zip loans, a high-margin buy-now-pay-later product, earlier this year. Mobikwik said it is now focused on scaling the longer-tenure, larger-ticket Zip EMI product under both the default loss guarantee (DLG) and risk-free distribution models. Disbursals through Zip EMI touched Rs 693.1 crore during the quarter.
In a letter to shareholders, the company also cited changes in DLG-related accounting, which required front-loading of costs and recognition of lower revenue in initial quarters after loan disbursals, further impacting margins.
“We are concentrating on the longer tenure and larger ticket size ZIP EMI product under both the DLG model and the risk-free distribution. We have discontinued the smaller-ticket ZIP product due to macroeconomic challenges and a slowdown in that segment,” the company said in the letter. “However, we are seeing this trend normalise and believe that Ǫ4 FY25 marked the bottoming-out phase. We expect operating performance to return to previous levels, that is ~40% gross margin in lending by H2 FY26.”
Mobikwik’s total expenses declined 9% year-on-year to Rs 312.8 crore in the quarter, largely due to a significant drop in lending-related costs. Lending operational expenses fell to Rs 29.1 crore in Q1 FY26 from Rs 92.3 crore a year earlier. However, payment gateway and employee benefit costs rose 12% and 7%, respectively, on a year-on-year basis.
Mobikwik’s stock has declined over 45% from its listing price of Rs 440 in December 2024. On Friday, it was trading at Rs 241.4 on the BSE at 10:14 AM, with a market capitalisation of Rs 1,886.9 crore.
For the full financial year ended March 2025, the Gurugram-based company had reported a net loss of Rs 122 crore, against a profit of Rs 9.3 crore in FY24.
While lending revenue took a hit, Mobikwik’s payments business showed strong momentum. Gross merchandise value (GMV) from payments rose to Rs 38,388 crore in Q1 FY26 from Rs 25,080 crore a year earlier, supported by continued user growth and merchant expansion. As of June 2025, the platform had 180.2 million registered users and 4.6 million merchants.
