OnMobile narrows Q2 loss as other income offsets higher interest costs
Revenue growth slightly outpaced expenses, but the improvement below operating profit was driven mainly by other income and lower tax expense.
Filed 28 Oct 2026, 22:58 IST · after market close · ONMOBILE (ONMOBILE)
Key takeaways
- OnMobile's consolidated net loss narrowed 63.55% sequentially to Rs 10.54 cr, helped by a swing in other income.
- Revenue grew 3.54% QoQ while expenses rose 3.47%, lifting operating margin by 0.07 percentage points.
- Interest expense rose 85.07% QoQ to Rs 4.09 cr, limiting the benefit from the operating improvement.
Loss narrowed despite a weak below-operating line
OnMobile's consolidated revenue grew 3.54% sequentially, while expenses increased 3.47%, leaving operating profit up 10.61% and operating margin higher by 0.07 percentage points. The larger improvement came below operating profit: other income moved from negative Rs 12.79 cr in Q1FY27 to positive Rs 3.31 cr in Q2FY27. Interest expense nevertheless rose 85.07% and depreciation increased 11.72%, keeping profit before tax negative at Rs 9.71 cr.
Tax expense helped, but profit quality remains mixed
Tax expense fell 86.20% sequentially, and the tax rate became less negative by 17.36 percentage points, supporting the reduction in net loss. However, the tax rate remained negative because the company reported a pre-tax loss. Other income represented -34.09% of profit before tax, underscoring that the quarter's improvement was not driven only by operations.
Gaming metrics improved as new distribution channels expand
The presentation said Gaming MRR reached a five-quarter high at the end of Q2FY27, while active customers increased by 740,000, or 5.4% from Q1FY27. Management said Gaming MRR is projected to grow 15% to 20% in FY27. The company also said Savex had signed to extend ONMO+ distribution across four retail channels, with the ONMO+ webstore scheduled to go live in November 2026.
New products broaden the gaming footprint
Management said OnMobile is expanding from mobile gaming into console and PC gaming. The company said its Smart Console is opening distribution through broadband, smart TV and set-top box, and mobile operator channels, while ONMO+ is available through Flipkart and Poorvika regional stores. Management also described targets for product EBITDA to move from 20% toward 25% for one product and from 10% toward 25% for another.
Results were filed after market close
The consolidated results were filed after market close on 28 October 2026. Sequentially, operating margin improved slightly from 1.08% to 1.15%, but the available trend shows only one preceding quarter, so there is no basis here to call a multi-quarter direction.
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 |
|---|---|---|---|
| Revenue | ₹127 cr | ₹123 cr | +3.54% |
| Other income | ₹3 cr | ₹-13 cr | — |
| Expenses | ₹126 cr | ₹121 cr | +3.47% |
| Operating profit | ₹1 cr | ₹1 cr | +10.61% |
| Operating margin (%) | 1.15% | 1.08% | — |
| Interest | ₹4 cr | ₹2 cr | +85.07% |
| Depreciation | ₹10 cr | ₹9 cr | +11.72% |
| Profit before tax | ₹-10 cr | ₹-23 cr | +57.75% |
| Tax | ₹1 cr | ₹6 cr | -86.20% |
| Net profit | ₹-11 cr | ₹-29 cr | +63.55% |
| EPS (₹) | ₹-0.99 | ₹-2.72 | +63.60% |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Gaming MRR reached a five-quarter high at the end of Q2 FY27.
- OnMobile added 740,000 active customers in Q2 FY27, up 5.4% from Q1 FY27.
Guidance & outlook
- Gaming MRR is projected to grow by 15% to 20% in FY27.
- One product's EBITDA is targeted to move from 20% toward 25%.
- Another product's EBITDA is targeted to move from 10% toward 25%.
Expansion
- Savex has signed to extend ONMO+ distribution across four retail channels.
- The ONMO+ webstore is scheduled to go live in November 2026.
New products
- The ONMO+ Smart Console is available through Flipkart and Poorvika regional retail stores.
New initiatives
- OnMobile is expanding from mobile gaming into the console and PC gaming market.
- The Smart Console is opening distribution through broadband, smart TV and set-top box, and mobile operator channels.
- Savex has been signed as a distribution partner for ONMO+.
Competition
- The gaming market has five major players across mobile gaming, console and cloud gaming.
What to watch
- Whether operating margin holds above 1.15% after its 0.07 percentage-point sequential improvement.
- Whether interest expense moderates after rising 85.07% QoQ to Rs 4.09 cr.
- Whether the five-quarter-high Gaming MRR and 740,000 active-customer addition are sustained.