MobiKwik Q2: Loss Surges 8X YoY To INR 28.6 Cr

Fintech company MobiKwik’s consolidated net loss skyrocketed 694% to INR 28.6 Cr in the second quarter of the ongoing fiscal (Q2 FY26) from INR 3.6 Cr in the same quarter last year. Sequentially, loss decreased 31.7% from INR 41.9 Cr. 

The company booked an exceptional loss of INR 11.8 Cr during the quarter under review due to a fraud carried out by some of its registered merchants and users by exploiting a technical bug in the platform. 

Notably, the company filed an FIR in September, alleging that it was defrauded of INR 40.4 Cr. 

Of this, the company said it has been successful in recovering INR 21.9 Cr, and INR 6.6 Cr is secured through merchants’ affidavits and court orders. 

Meanwhile, MobiKwik’s revenue from operations declined 7% to INR 270.2 Cr in Q2 from INR 290.6 Cr in the second quarter of FY25. On a quarterly basis, revenue declined marginally from INR 271.3 Cr. 

The fintech company reported an EBITDA loss of INR 6.4 Cr during the quarter under review as against an EBITDA profit of INR 6.8 Cr in the same quarter previous year. However, EBITDA loss declined 79.4% from INR 31.2 Cr in the preceding June quarter. 

Total expenditure declined marginally to INR 285.7 Cr in Q2 FY26 from INR 286.9 Cr in the year-ago quarter. 

MobiKwik divides its business into payments and financial services verticals. For payments, it earns revenue by charging merchant fees and convenience fees. For financial services, it generates revenue from collection fee, late payment fee and penal charges.

Now, let’s take a deeper look at the performance of MobiKwik’s two verticals.

Payments Revenue Sees Sequential Decline 

MobiKwik’s revenue from the payments business increased 11% YoY to INR 208.9 Cr from INR 187.7 Cr in the same quarter previous year. However, revenue from the segment slipped 2% QoQ from INR 213.1 Cr.

The company attributed the YoY increase in revenue to rise in payments GMV, number of users and merchants. MobiKwik’s merchant count stood at 4.71 Mn at the end of September quarter of FY26. 5. This count also increased on a QoQ basis from 4.64 Mn.

Similarly, its GMV grew 53% to INR 43,200 Cr from INR 28,300 Cr in the same quarter last year. The figure also grew sequentially from INR 38,400 Cr. 

While net payment margin improved to 14 basis points (bps) from 13 bps in the year-ago quarter, it declined from 15 bps in Q1 FY26.

Financial Services Segment Recovers

The revenue of the financial services segment sank 51.7% to INR 61.3 Cr during the quarter under review from INR 127.1 Cr in Q2 FY25. However, on a QoQ basis, the segment’s revenue rose 5.1% from INR 58.3 Cr.

MobiKwik’s financial services segment has been hit over the past few quarters due to its switch to default loan guarantee contracts with its lending partners and the shut down of its small-ticket size BNPL offering ZIP. 

After shutting ZIP, the company has been focussing on ZIP EMI. Under ZIP EMI, it offers long-term personal loans ranging from INR 10,000 to INR 5 Lakh with longer tenures of 3 to 24 months, allowing users to convert purchases into equated monthly installments (EMIs).

The YoY decline in revenue of the financial services segment in Q2 came because of discontinuation of ZIP. While ZIP’s disbursal stood at INR 950 Cr in the year-ago quarter, that of ZIP EMI stood at INR 675.8 Cr. 

However, ZIP EMI disbursal zoomed to INR 807.1 Cr in Q2 FY26. On a QoQ basis, it rose from INR 693.1 Cr, up 14%. Similarly, net margin of the financial services segment improved to 3.17% from 1.11% in the preceding quarter. On a YoY basis, it declined from 3.75%

The company’s shares plunged following the results and ended today’s trading session 4.07% lower at INR 253.70 on the BSE.