Margin improves, but Mobikwik remains near the bottom of its sector
Consolidated operating margin rose to 5.28% as costs grew slower than revenue, while other income remained important to profit.
Filed 02 Nov 2026, 13:06 IST · One Mobikwik Systems Ltd (MOBIKWIK)
Key takeaways
- Operating margin improved 2.40 percentage points QoQ to 5.28% as revenue grew 5.05% while expenses rose 2.45%.
- Net profit turned positive at Rs 11.83 cr from a loss of Rs 28.61 cr YoY, but other income contributed 59.48% of pre-tax profit.
- Lending disbursals recovered to Rs 10,826 million, up 47% QoQ and 34% YoY, according to management.
Price around the results
Profit recovery extends into Q2FY27
One Mobikwik Systems reported consolidated net profit of Rs 11.83 cr in Q2FY27, against a loss of Rs 28.61 cr in Q2FY26. Revenue grew 9.43% YoY while expenses declined 1.97%, driving operating margin up 11.01 percentage points from -5.73%. Sequentially, net profit rose 55.25% as revenue increased 5.05% and expenses grew 2.45%.
Operating leverage helped, but profit quality remains mixed
Operating margin expanded 2.40 percentage points QoQ because revenue grew faster than expenses. Interest expense rose 43.17% QoQ and depreciation increased 20.06%, partly offsetting the operating improvement. Other income accounted for 59.48% of pre-tax profit, so reported earnings still rely materially on non-operating income; the 0.33% tax rate also left almost all pre-tax profit after tax.
Margin is improving but still trails financial-services peers
The operating margin has risen from 2.32% in Q3FY26 to 3.50% in Q4FY26, dipped to 2.88% in Q1FY27, and recovered to 5.28% in Q2FY27. Among 70 Financial Services peers that have reported, the sector median operating margin is 53.48%; Mobikwik is 48.20 percentage points below that median and ranks fourth from the bottom.
Lending recovery was the main business update
Management said lending disbursals recovered to Rs 10,826 million in Q2FY27 after a temporary Q1 dip linked to technology-infrastructure migration. The company said it expects consistent GMV growth with a stable Net Payments Margin and sees potential upside from UPI MDR. Management also said it aims to sustain lending momentum as partnerships mature and new product categories launch, while progressing toward an AI-first organisation by FY28.
Past result reactions have skewed negative
Across the eight prior result reactions, the stock rose three times and fell five times. The median absolute move was 2.77%, with recorded moves ranging from +4.66% to -10.88%; the current results do not yet have a recorded market reaction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹296 cr | ₹281 cr | +5.05% | +9.43% |
| Other income | ₹7 cr | ₹8 cr | -7.95% | — |
| Expenses | ₹280 cr | ₹273 cr | +2.45% | -1.97% |
| Operating profit | ₹16 cr | ₹8 cr | +92.84% | — |
| Operating margin (%) | 5.28% | 2.88% | — | — |
| Interest | ₹7 cr | ₹5 cr | +43.17% | -9.85% |
| Depreciation | ₹4 cr | ₹4 cr | +20.06% | +35.96% |
| Profit before tax | ₹12 cr | ₹8 cr | +55.37% | — |
| Tax | ₹0 cr | ₹0 cr | +33.33% | +0.00% |
| Net profit | ₹12 cr | ₹8 cr | +55.25% | — |
| EPS (₹) | ₹1.50 | ₹0.97 | +54.64% | — |
Operating margin of 5.28% compares with a Financial Services sector median of 53.48% across 70 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Lending disbursals recovered to ₹10,826 million in Q2 FY27, up 47% QoQ and 34% YoY.
Guidance & outlook
- The company is on track to become AI-first across the organization by FY28.
- The company expects consistent GMV growth with a stable Net Payments Margin and potential upside from UPI MDR.
- The company aims to sustain lending disbursal momentum as partnerships mature and new product categories launch.
- The company sees significant growth potential from tapping its existing customer base.
New products
- The company plans to launch new product categories as lending partnerships mature.
New initiatives
- The company is using AI-led software development.
- The company is using a vernacular AI chatbot to improve customer experience.
- The company is deploying AI-led resolution for cybercrime and fraud complaints and chargebacks.
- The company is refining its FLDG policy for risk control.
- The company is focusing on improved risk-based pricing for product-market fit.
Problems & risks
- Lending disbursals temporarily dipped in Q1 FY27 because of technology infrastructure migration.
What to watch
- Whether operating margin holds above 5.28% after the Q2FY27 recovery.
- Whether other income remains below 59.48% of pre-tax profit as operating earnings improve.
- Whether lending disbursals sustain the Q2FY27 level of Rs 10,826 million.