Mobikwik FY26 revenue falls 4 per cent as losses narrow sharply

MUMBAI: India’s fintech race is increasingly becoming less about burning cash and more about surviving the burn. One Mobikwik Systems closed FY26 with a smaller loss, tighter spending and a sharper focus on scaling its lending business even as revenue growth slowed and payment volumes came under pressure in an increasingly competitive digital finance market. The fintech company reported consolidated revenue from operations of Rs 1,119.2 crore for the year ended March 31, 2026, down 4.4 per cent from Rs 1,170.2 crore a year earlier.

But beneath the softer topline, the company significantly reduced its losses.

Mobikwik’s net loss narrowed nearly 49 per cent to Rs 61.9 crore in FY26 from Rs 121.5 crore in the previous year, helped by lower lending operational expenses, controlled employee costs and improving efficiencies across the business.

The company’s EBITDA loss also improved dramatically to Rs 5.1 crore from Rs 79.4 crore last year, signalling a stronger grip on operational spending after years of aggressive fintech expansion.

In the March quarter, however, the picture looked notably healthier.

Quarterly revenue rose to Rs 288.7 crore from Rs 267.8 crore in the corresponding quarter last year, while the company swung to a quarterly profit of Rs 4.3 crore compared to a loss of Rs 56 crore a year ago.

That turnaround came despite payment processing charges remaining high at Rs 119.3 crore and financial guarantee expenses climbing to Rs 29.9 crore during the quarter.

The lending business is increasingly becoming central to Mobikwik’s growth strategy.

Over the past year, the company has steadily expanded beyond digital payments into financial services products, including credit distribution and guarantees, a pivot many Indian fintech firms are pursuing as payments alone become harder to monetise profitably.

Lending operational expenses for FY26 dropped sharply to Rs 45.1 crore from Rs 175.8 crore a year earlier, reflecting tighter cost management and a recalibration of the company’s credit strategy.

At the same time, Mobikwik continued investing heavily in technology and product infrastructure. Following its December 2024 IPO, the company raised net proceeds of Rs 530.5 crore, of which Rs 348.4 crore had been utilised by March 2026.

A sizeable chunk of that capital has gone into scaling financial services, payment systems and AI-led technology development. The company allocated Rs 150 crore towards growing its financial services business and Rs 107 crore towards research, machine learning and artificial intelligence initiatives.

Its balance sheet also reflected growing operational scale.

Cash and cash equivalents stood at Rs 239.1 crore as of March 31, while total assets rose to Rs 1,408.5 crore from Rs 1,360.3 crore a year earlier. Other equity, however, declined to Rs 523.1 crore from Rs 573.1 crore due to accumulated losses.

Meanwhile, borrowings eased slightly to Rs 261.1 crore from Rs 271 crore.

The broader fintech landscape has become significantly tougher over the past year. Investors are increasingly rewarding profitability over rapid expansion, while regulators continue tightening oversight around digital lending, customer protection and payments infrastructure.

For Mobikwik, FY26 appears to mark a transition year from growth-at-all-costs fintech to a business trying to prove it can scale sustainably.

The company may still be in the red, but unlike many of its earlier fintech innings, the numbers are no longer flashing only warning signs.