MobiKwik's 2.88% operating margin leaves profit reliant on other income
Management linked payments growth to lower-take-rate categories and said lending disbursals should recover in Q2FY27.
Filed 03 Aug 2026, 11:09 IST · MOBIKWIK (MOBIKWIK)
Key takeaways
- Consolidated operating margin was 2.88%, leaving Rs 8.10 cr of operating profit on Rs 281.48 cr of revenue.
- Other income of Rs 7.67 cr exceeded profit before tax of Rs 7.64 cr, while the 0.38% tax rate supported Rs 7.62 cr of net profit.
- Management said lending disbursals should recover in Q2FY27 after a Q1 dip, following the addition of two major lending partners.
Low operating conversion, unusual profit mix
The consolidated quarter generated Rs 8.10 cr of operating profit on Rs 281.48 cr of revenue, a 2.88% margin. Earnings quality was mixed: other income of Rs 7.67 cr was higher than profit before tax of Rs 7.64 cr. The 0.38% tax rate also kept net profit close to profit before tax.
Payments growth shifted toward lower-yield categories
Management said some card-based payment categories were paused in Q4FY26 and Q1FY27, reducing both payments revenue and gateway costs. It also said growth moved toward merchant, UPI and non-card categories, where take rates are lower. Payments GMV grew 50% year on year and 8% quarter on quarter, while net payment margin was 13 basis points.
Lending migration preceded the planned recovery
Management attributed the Q1 lending disbursal dip to technology infrastructure migration and a deliberate effort to reduce lender concentration. The company said it added two major lending partners in Q1FY27 and expects disbursals to recover in Q2FY27, with quarterly disbursals targeted above Rs 10,000 million in upcoming quarters. Repeat loans increased from 35% to 60%.
UPI expansion remains the central growth plan
Management said MobiKwik's UPI transactions grew 130% year on year against 24% for the industry, and that the company is targeting fourfold UPI transaction growth over the next two years. It also said a dedicated UPI PSP technology stack should support faster fixes, higher uptime and quicker releases. A new referral programme is being used to increase UPI registrations and transactions.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹281 cr |
| Other income | ₹8 cr |
| Expenses | ₹273 cr |
| Operating profit | ₹8 cr |
| Operating margin (%) | 2.88% |
| Interest | ₹5 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹8 cr |
| Tax | ₹0 cr |
| Net profit | ₹8 cr |
| EPS (₹) | ₹0.97 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Payments GMV grew 50% year on year and 8% quarter on quarter, while net payment margin was 13 basis points.
- Repeat loans increased from 35% to 60%.
Guidance & outlook
- The company is targeting fourfold UPI transaction growth over the next two years.
- The company expects consistent GMV growth with a stable net payments margin.
- The company expects lending disbursals to recover from the Q1 FY27 dip in Q2 FY27.
- The company expects quarterly lending disbursals of more than ₹10,000 million in upcoming quarters.
Expansion
- The company added two new major lending partners in Q1 FY27.
New products
- The company plans to launch new product categories as its new lending partnerships mature.
New initiatives
- The company operates a dedicated UPI PSP technology stack to enable faster fixes, higher uptime and quicker releases.
- A new referral programme is being used to grow UPI registrations and transactions.
Competition
- MobiKwik describes itself as the second-fastest-growing UPI TPAP app, with 130% year-on-year transaction growth versus 24% for the industry.
- The company holds approximately 19% of total PPI wallet GMV.
Problems & risks
- Some card-based payment categories were paused in Q4 FY26 and Q1 FY27, reducing payments revenue and gateway costs.
- Payments growth has shifted toward merchant, UPI and non-card categories with relatively lower take rates.
- Lending disbursals temporarily declined because of technology infrastructure migration and efforts to reduce lender concentration.
What to watch
- Whether operating margin holds above 2.88% as the payments mix evolves.
- Whether lending disbursals recover in Q2FY27 and move toward the company's stated level above Rs 10,000 million per quarter.
- Whether net payment margin remains at 13 basis points as merchant, UPI and non-card categories grow.