How Did MobiKwik's Losses Surge to 42 Crores in Q1?
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Synopsis
MobiKwik faces staggering losses in Q1 FY26, with a net loss of Rs 41.9 crore, a sharp increase from last year. While operating revenue has dipped by 21%, the company shows signs of recovery. Explore the financial challenges and outlook as MobiKwik navigates its path to profitability.
Key Takeaways
- MobiKwik's net loss reached Rs 41.9 crore in Q1 FY26.
- Operating revenue declined by 21 percent year-over-year.
- Payment gateway fees significantly impacted financial results.
- Sequential revenue showed slight improvement.
- Focus on long-term profitability remains crucial.
New Delhi, Aug 1 (NationPress) The fintech firm One MobiKwik Systems has announced a consolidated net loss of Rs 41.9 crore for the April-June quarter (Q1 FY26), which has skyrocketed more than six times compared to the Rs 6.6 crore loss during the equivalent quarter last year.
According to its regulatory disclosures, the company's operating revenue stood at Rs 271.3 crore, reflecting a decline of approximately 21 percent from the Rs 342.2 crore reported in Q1 FY25.
Nonetheless, MobiKwik showed a slight improvement sequentially, with revenue climbing by 1.3 percent from Rs 267.7 crore. Losses have also diminished from Rs 56 crore in the preceding quarter (Q4 FY25).
Total expenses for the quarter were recorded at Rs 312.8 crore, down from Rs 343.6 crore in the same period last year.
Increased payment gateway fees, which rose from Rs 127.6 crore to Rs 142.8 crore, significantly contributed to the widening losses, as noted in their filing.
Furthermore, employee benefit costs experienced a minor increase to Rs 41.9 crore in the quarter under review, compared to Rs 39.1 crore in the corresponding quarter last year.
The company, which completed its initial public offering (IPO) in the quarter ending December 2024, reported spending Rs 214 crore of the Rs 530.5 crore raised from the offering as of June 30.
“We are pleased with the consistent progress across our core business. Payments showed robust growth and Financial Services rebounded, resulting in an enhanced Q1 EBITDA, reinforcing our journey toward profitability,” stated Upasana Taku, Executive Director, Co-founder, and CFO of One MobiKwik Systems Ltd.
She added, “We remain dedicated to enhancing operating leverage and fostering long-term value creation.”
Meanwhile, the company's shares were trading down on Friday amid selling pressure following the underwhelming Q1 earnings. Around 1:20 PM, the stock was valued at Rs 237.27, down 3.38 percent or Rs 8.31.
The stock declined by over 7 percent in the last five trading sessions and plunged more than 40 percent over the past six months. Year-to-date, MobiKwik shares have plummeted by over 60 percent.
Point of View
It's crucial to approach MobiKwik's financial results with a balanced lens. The widening losses highlight significant challenges, yet the company's efforts toward recovery and profitability should not be overlooked. We must remain vigilant as they strive for growth in a competitive fintech landscape.
NationPress
19/08/2025
Frequently Asked Questions
What caused MobiKwik's losses in Q1 FY26?
The losses were primarily due to increased payment gateway fees and rising employee benefit costs, alongside a significant drop in operating revenue.
How does MobiKwik's current performance compare to last year?
MobiKwik's net loss surged over six times compared to the same period last year, indicating a challenging financial landscape for the company.
What is MobiKwik's outlook moving forward?
Despite the losses, MobiKwik is focused on improving its core business operations and aims for profitability in the upcoming quarters.
How have MobiKwik's shares performed recently?
MobiKwik's shares have seen a decline of over 60% year-to-date, reflecting investor concerns following the latest earnings report.
What steps is MobiKwik taking to recover?
The company is concentrating on enhancing operating leverage and investing in areas that will contribute to long-term value creation.
