MobiKwik Shares Drop 2% On Weak Q2 Results

Shares of MobiKwik dropped over 2% to INR 595.20 apiece on the BSE during the early trading hours today (January 8), weighed down by the company’s weak earnings for the quarter ended September 2024 (Q2 FY25).

The fintech major reported a net loss of INR 3.59 Cr in Q2 FY25 as against a profit of INR 5.22 Cr in the year-ago quarter. The company attributed the loss to continued investments in the business 

On a quarter-on-quarter basis, MobiKwik’s net loss nearly halved from INR 6.62 Cr.

Revenue from operations surged 42% to INR 290.65 Cr during the quarter under review from INR 203.45 Cr in Q2 FY24. However, it declined 15% sequentially from INR 342.27 Cr.

MobiKwik’s EBITDA stood at INR 6.80 Cr in Q2 FY25, down 37% from INR 10.8 Cr in the year-ago quarter.

Its total expenditure jumped 46.53% YoY to INR 286.86 Cr in Q2 FY25 from INR 196.02 Cr in Q2 FY24.

Revenue from the payments business shot up by 65% to INR 187.7 Cr in the second quarter of the financial year 2024-25 from INR 66.7 Cr in the same quarter last year.

However, revenue from financial services dipped 25% to INR 102.9 Cr from INR 136.7 Cr in the year-ago quarter.

“The strong growth in our payments business demonstrates our ability to scale while maintaining strong contribution margins. The company continues to work on balancing growth and profitability by increasing market share and launching innovative products,” said MobiKwik cofounder and CFO Upasana Taku.

Founded in 2009 by Bipin Preet Singh and Taku, MobiKwik is a digital banking platform that offers a suite of financial products for both consumers and merchants.

MobiKwik made a stellar debut on Dalal Street last month, with its shares listing at INR 442.25 apiece on the BSE, a 58.5% premium against the IPO issue price of INR 279.

The stock has given an upward run of almost 38% since listing on bourses.

At the time of writing, MobiKwik was sitting on a market capitalisation of INR 4,789.36 Cr (around $558 Mn).