MobiKwik Q1 FY27 Results: Returns to Profit with ₹76 Million PAT, GMV Hits Record High

What Happened ?

• MobiKwik continued its profitability turnaround in Q1 FY27 by delivering its third straight profitable quarter. The company benefited from record payment volumes, improved monetization across its payments platform, stronger lending profitability, and disciplined cost management. Growth in UPI transactions and enhanced credit quality also supported higher profitability and margin expansion across its financial services business. 

key details

Business & Operational Highlights:

• Platform GMV reached a record ₹587 billion, growing 50% YoY.
• Total Income increased 3% YoY to ₹2,892 million.
• Revenue from operations rose 4% YoY to ₹2,815 million.
• Contribution Profit grew 66% YoY to ₹1,286 million.
• EBITDA improved to ₹158 million, compared with a loss in the corresponding quarter last year.
• PAT turned positive at ₹76 million, compared with a ₹419 million loss in Q1 FY26.
• Direct costs declined 21% YoY, reflecting improved operational efficiency.
• This marked the third consecutive profitable quarter, reinforcing the sustainability of the company’s business model. 

Payments & Financial Services Highlights:

• Platform GMV recorded its highest-ever quarterly level at ₹587 billion.
• The company completed its 14th consecutive quarter of Platform GMV growth.
• MobiKwik remained the largest PPI wallet in India and ranked among the fastest-growing UPI TPAP apps.
• UPI transaction growth significantly outpaced industry growth.
• User base expanded to 193 million, while merchant base increased to 5.02 million.
• Financial Services Gross Profit increased 5.6x YoY to ₹433 million.
• Net Financial Services Margin improved from 1.1% in Q1 FY26 to 5.9% in Q1 FY27.
• ZIP EMI GMV increased 6% YoY to ₹7,367 million.
• Approximately 60% of loans were issued to repeat customers, while credit risk performance improved by around 25%. 

Note:

• The company stated that profitability has been firmly re-established and intends to accelerate growth across its digital financial services portfolio while maintaining a calibrated and sustainable approach. 

Risk Analysis

Summary:

• MobiKwik has successfully returned to sustained profitability, but maintaining growth will depend on continued expansion in payments volumes, lending quality, and effective monetization across its fintech ecosystem.

Key Risks:

• Revenue growth remained modest despite strong GMV expansion.
• Lending performance depends on maintaining credit quality and collection efficiency.
• Continued investments in growth businesses may increase operating expenses.
• Competitive intensity in digital payments and fintech remains high.

Worst Case:

• If payment monetization slows or credit quality weakens, profitability could come under pressure despite continued transaction volume growth.

Risk Level: Medium

Company Commentary

Management highlighted the following during the quarter:

• Co-founder, MD & CEO Bipin Preet Singh said profitability is now embedded in MobiKwik’s business model after three consecutive profitable quarters.
• Management highlighted record Platform GMV growth supported by improving unit economics.
• The company emphasized strong improvement in lending profitability, enhanced credit quality, and portfolio recoveries.
• MobiKwik reiterated its focus on strengthening payments leadership, expanding digital financial services, and creating sustainable long-term shareholder value.