MobiKwik swings to profit in Q3 on cost-cutting measures

Digital payments firm MobiKwik posted a profit after tax of Rs 3.94 crore in Q3 FY26, reversing a loss of Rs 55.75 crore in the same period a year earlier, as the company sharply reduced key operating costs despite modest top-line growth.

The fintech platform’s revenue from operations rose 7.23% to Rs 288.94 crore from Rs 269.47 crore in Q3 FY25, according to its financial statements.

The return to profitability marks a turnaround for the company, which has struggled with sustained losses since its stock market listing in 2024. The shift to the black was driven primarily by aggressive cost-cutting measures.

Payment processing charges, MobiKwik’s largest expense line, fell 10.18% to Rs 129.07 crore from Rs 143.7 crore a year earlier. Employee benefit expenses declined 6.51% to Rs 41.48 crore from Rs 44.37 crore, while other expenses dropped 3.78% to Rs 83.73 crore from Rs 87.02 crore.

Total expenses fell 11% to Rs 282.24 crore from Rs 317.14 crore a year earlier. EBITDA rose to a positive Rs 14.97 crore compared with negative Rs 42.67 crore in Q3 FY25.

MobiKwik’s customer-initiated UPI gross merchandise value (GMV) reached Rs 20,960 crore in Q3 FY26, reflecting 21% quarter-on-quarter growth and 123% year-on-year growth, as the digital payments firm expanded its market position.

The company climbed from rank 16 in September 2025 to rank 12 in December 2025 in customer-initiated UPI transactions, and from rank 17 to rank 15 in total UPI transactions. UPI’s share in total GMV increased to 41% in Q3 FY26 from 32% in Q3 FY25 for MobiKwik.

Its financial services business posted a turnaround, with gross profits up 45% quarter-on-quarter and 405% year-on-year. Gross margins improved to 57% in Q3 FY26. Revenue from the segment grew 6% sequentially, while lending-related expenses fell 22% quarter-on-quarter and 57% year-on-year.

MobiKwik’s EMI product GMV rose 126% year-on-year and 12% quarter-on-quarter to Rs 900 crore. The FLDG (first loss default guarantee) model contributed approximately 80% of lending GMV, with the marketplace model accounting for the remaining 20%.

The company is developing additional revenue streams, including loans against mutual funds, co-branded credit cards, credit card distribution and merchant lending, though these remain small in scale.

MobiKwik shares were trading at Rs 232.90 on Tuesday, up 17.33% from its Monday close of Rs 198.50.