OnMobile FY26 revenue falls, company posts standalone loss

BANGALORE: It appears that OnMobile Global Limited is finding it increasingly difficult to keep its balance on the corporate tightrope, as the mobile entertainment firm’s latest quarterly numbers suggest they might be losing their grip.

For the financial year ended 31 March 2026, OnMobile’s standalone revenue from operational mobile entertainment services dropped to Rs 180.16 crore, compared to Rs 239.31 crore in the previous fiscal year. Total standalone income, supported by a rise in “Other Income” from Rs 10.54 crore to Rs 41.61 crore, stood at Rs 221.77 crore. Total standalone expenses reached Rs 224.78 crore, resulting in an annual net loss of Rs 3.55 crore, down from a net profit of Rs 8.45 crore in the prior year.

The fourth quarter was particularly affected by an impairment loss on financial and contract assets amounting to Rs 48.08 crore (bringing the full-year standalone impairment to Rs 49.38 crore). Notes to the financial statements state that this included a write-off of Rs 46.84 crore receivable from a party whose revenue contract was terminated during the year. Consequently, standalone revenue for the quarter dropped to Rs 44.18 crore (from Rs 71.11 crore in Q4 2025), and the standalone net loss for the quarter widened to Rs 39.93 crore.

For the financial year ended 31 March 2026, OnMobile Global reported standalone revenue from operations of Rs 180.16 crore, down from Rs 239.31 crore in FY 2024-25. Other income rose significantly to Rs 41.61 crore from Rs 10.54 crore, taking total income to Rs 221.77 crore compared to Rs 249.85 crore in the previous fiscal year. Total expenses stood at Rs 224.78 crore, marginally lower than Rs 228.43 crore a year earlier. As a result, the company posted a standalone net loss of Rs 3.55 crore for FY 2025-26, against a net profit of Rs 8.45 crore in FY 2024-25.

On a consolidated basis, full-year revenue from operations decreased to Rs 516.85 crore from Rs 573.02 crore. Total consolidated income was Rs 571.78 crore against total consolidated expenses of Rs 580.11 crore, yielding an annual consolidated net loss of Rs 11.49 crore. This is an improvement compared to the consolidated net loss of Rs 40.54 crore reported in the previous fiscal year.

Basic and diluted earnings per share (EPS) for the standalone year declined to negative Rs 0.33 per share (face value of Rs 10 each), down from positive Rs 0.79 in the prior year.

A breakdown of standalone expenditures shows that content fees and royalties increased to Rs 30.69 crore from Rs 5.47 crore, while contest expenses rose slightly to Rs 2.26 crore. Conversely, software licenses and technical infrastructure costs fell sharply to Rs 10.48 crore from Rs 63.25 crore. Employee benefits expense decreased to Rs 72.93 crore from Rs 74.92 crore, marketing costs were reduced to Rs 21.22 crore from Rs 33.53 crore, and other operating expenses fell to Rs 27.23 crore from Rs 40.43 crore.

The company also recorded an exceptional charge of Rs 0.46 crore due to the statutory impact of India’s new Labour Codes, primarily relating to gratuity provisions. Additionally, “Other Income” included an intercompany payables write-back of Rs 0.15 crore from overseas branches that are currently undergoing liquidation or closure.

As of 31 March 2026, OnMobile’s standalone total assets stood at Rs 864.03 crore, up from Rs 818.30 crore the previous year. Non-current assets accounted for Rs 578.97 crore, including financial investments of Rs 363.12 crore, while current assets rose to Rs 285.06 crore. Bank balances outside cash equivalents increased substantially to Rs 57.77 crore from Rs 10.30 crore. Total equity reached Rs 716.31 crore, consisting of Rs 106.32 crore in paid-up equity share capital and Rs 609.99 crore in other equity reserves. Short-term borrowings increased to Rs 39.45 crore from Rs 27.96 crore.
In terms of governance, the board approved the appointment of Leo Matthew Olebe as an additional director in the Independent category for a five-year term, subject to shareholder approval.

With impairment charges eroding quarterly performance and core mobile entertainment revenues continuing to contract, the road ahead for OnMobile Global may depend on whether it can stabilise its legacy business while extracting growth from newer digital offerings. For now, the company’s FY26 numbers suggest that tighter cost controls and higher other income were not enough to offset operational weakness, leaving investors to watch closely for signs of a sustainable turnaround in the coming quarters.