MobiKwik returns to profit with Rs 7.6 crore in Q1
Revenue barely moved. Expenses fell 13 percent, and that alone turned a Rs 42 crore loss into a small profit.
- Operating revenue Rs 281 crore, up just 3.7 percent year on year.
- Net profit Rs 7.6 crore against a Rs 42 crore loss in Q1 FY26.
- Total expenses fell 13.3 percent to Rs 281 crore. EBITDA Rs 16 crore from a Rs 31 crore loss.
- Payment processing charges alone were Rs 117 crore, 41.6 percent of all expenses.
MobiKwik reported Q1 FY27 operating revenue of Rs 281 crore, up 3.7 percent from Rs 271 crore a year earlier, and a net profit of Rs 7.6 crore against a loss of Rs 42 crore in the same quarter last year. Total income was Rs 289 crore and EBITDA reached Rs 16 crore, from a Rs 31 crore loss.
The turnaround came from costs rather than growth. Total expenses fell 13.3 percent to Rs 281 crore. Payment processing charges remained the largest single line at Rs 117 crore, 41.6 percent of the total, with employee benefits at Rs 53 crore and financial guarantee expenses at Rs 28 crore. Revenue was essentially flat sequentially while profit nearly doubled quarter on quarter. The stock traded at Rs 290, valuing the company near Rs 1,614 crore.
The structural point is that payment processing charges consume more than 40 percent of the cost base. In payments, the cost of moving money is largely set by the rails, not by the operator, which caps how far efficiency alone can take you.
Profit reached by cutting is real profit and it is finite. The next quarter has to show whether revenue can grow without the cost line following it back up.
Zane’s analysis draws on original reporting by Entrackr. Read the original report.