MobiKwik back in the green in Q3 FY26 as revenue climbs 7% to Rs 289 crore

Indian fintech firm MobiKwik has returned to profitability in the third quarter of FY26, supported by cost discipline, improving unit economics, and steady growth across its payments and financial services businesses.

For the quarter ended December 31, 2025, the company reported total income of Rs 297.2 crore on a consolidated basis, up 8% year-on-year and 6% sequentially.

Revenue from operations rose 7% year-on-year to Rs 289 crore in Q3 FY26 from Rs 270 crore in the same quarter last year. Core revenue streams included commissions from recharges, payment processing, interest income from loan servicing, payment gateway services, and platform fees.

The quarter marked a sharp turnaround in profitability. EBITDA stood at Rs 15 crore, compared with a loss of Rs 42.7 crore in Q3 FY25, representing a year-on-year improvement of Rs 57.6 crore.

Profit after tax (PAT) came in at Rs 4 crore, reversing a loss of Rs 55.3 crore in the year-ago period. The improvement was driven by operating leverage and tighter cost controls, with fixed costs declining to 38% of total income from 42% a year earlier.

Contribution profit increased 76% year-on-year and 34% quarter-on-quarter to Rs 128.8 crore, reflecting stronger margins across both payments and lending.

Total operating expenses moderated during the quarter. According to NSE filings, payment gateway costs remained the largest expense at 44% of total costs, amounting to Rs 129 crore. Employee benefit expenses stood at Rs 41 crore, while overall burn reduced 11% year-on-year to Rs 293 crore in Q3 FY26.

MobiKwik’s core payments business continued to scale, with Payments GMV reaching an all-time high of Rs 481 billion, up 63% year-on-year and 11% quarter-on-quarter. This marked the twelfth consecutive quarter of record-high GMV. UPI transactions grew 3.2 times year-on-year, placing the platform among the top five fastest-growing UPI apps in India’s UPI ecosystem.

The company retained its position as the number one PPI wallet in the country. User metrics also expanded during the quarter. MobiKwik’s user base grew to 186.6 million, while its merchant network increased to 4.79 million. Net payments processing margin stood at 17 basis points, supported by improved monetisation beyond UPI. Gross margin for the payments business rose to an all-time high of 37%, a 125% year-on-year expansion.

The financial services segment also returned to growth after an earlier slowdown. ZIP EMI GMV rose 126% year-on-year and 12% sequentially to Rs 90 crore, surpassing previous peak levels. Financial services gross profit increased to Rs 37.2 crore, up 405% year-on-year, while net financial services margin improved to 4.13% from 1.05% in Q3 FY25, reflecting better credit quality and collections.

For the nine-month period ended December 2025, revenue declined 8% year-on-year to Rs 830.5 crore, indicating that the profitability turnaround remains concentrated in the second half of the fiscal year.

Commenting on the results, Upasana Taku, Executive Director, Co-founder and CFO of MobiKwik, said, “We are pleased to report a profitable quarter, reflecting disciplined execution and sustained cost optimization across our businesses. Our focus on operating efficiency and thoughtful scaling has enabled us to achieve profitability while maintaining growth momentum. We were confident of achieving profitability in H2 FY26, and we are proud to have delivered on that commitment.”