Fintech platform MobiKwik has reported a significant jump in net loss for the Q1 of FY26 as challenges in its lending business continue to weigh on performance. The Gurugram-based company posted a consolidated net loss of Rs 41.9 crore, nearly six times higher than the Rs 6.6 crore loss recorded a year ago.
The loss, however, narrowed from Rs 56 crore in the previous quarter. Total income declined 18.6% year-on-year to Rs 281.6 crore, driven by a steep drop in financial services revenue and a rise in financial guarantee costs associated with its lending model.
MobiKwik Q1 FY26
Revenue from operations fell 20.7% to Rs 271.4 crore, while EBITDA slipped into the red at Rs 31.2 crore compared to a profit of Rs 2.2 crore in Q1 FY25. On a sequential basis, EBITDA loss improved from Rs 45.8 crore.
The deterioration in profitability was largely due to the slowdown in MobiKwik’s digital credit business. Financial services revenue dropped 65.8% to Rs 58.3 crore from Rs 170.7 crore in the same period last year. The company attributed this to muted lender appetite and its strategic shift away from short-tenure ZIP credit products.
New Lending Focus
MobiKwik is now focusing on longer-tenure ZIP EMI loans using the Default Loss Guarantee (DLG) model, where it bears part of the credit risk to attract lending partners. This approach has increased guarantee costs Rs 21.4 crore in Q1 compared to Rs 2.5 crore last year while revenue is deferred, pressuring short-term margins.
“We have discontinued the smaller-ticket ZIP product due to macroeconomic challenges,” the company said. “We expect gross margins in lending to return to around 40% by H2 FY26.”
Payments Segment Grows
While lending struggled, the payments business was a bright spot, contributing 76% of total income compared to 50% a year ago. Payments revenue rose 24.2% year-on-year to Rs 213.1 crore, with gross payment margins improving to a record 28%. Payments GMV surged 53% to Rs 38,388 crore.
MobiKwik ended the quarter with 18 crore registered users and 46.4 lakh merchants. Operational expenses dropped 9% to Rs 312.8 crore, aided by cost cuts. The company also launched new products, including a fixed deposit-backed RuPay credit card and “Pocket UPI,” a PIN-less UPI service aimed at smaller cities.
