One Mobikwik Q1 FY27 Earnings Call — Analysis (NSE: MOBIKWIK)

Q1 FY27 most successful and profitable quarter yet; PAT ₹7.6 Cr, third straight profitable quarter, underpinned by 50% payments GMV growth and financial services gross profit up 5.6x YoY.

6 Aug 2026 · Analysis by Alpha Inflection

The take

Q1FY27 Payment Revenue ₹208 Cr ( flat YoY ) . New guidance — mature consumer payments revenu… 5-6% QoQ . New story: Sustainable Profitability Turnaround .

Results

Revenue flat at ₹208 Cr from payments; Gross Profit up 66% YoY to ₹121 Cr; EBITDA ₹15.8 Cr (vs -₹31.2 Cr YoY); PAT ₹7.6 Cr (vs -₹41.9 Cr YoY); Payments GMV all-time high ₹58,700 Cr (+50% YoY).

Financial highlights

Guidance

Full-year FY27 PAT target of ~₹40 Cr and EBITDA of ~₹75 Cr; lending disbursements to reach at least ₹1,000 Cr per quarter from Q2FY27; merchant business to break even by FY28 with revenue targeted to grow 10x in two years.

What management committed to

• We are targeting full-year PAT of ₹40 Cr for FY27. — ₹40 Cr, FY27
• We are targeting full-year EBITDA of ₹75 Cr for FY27. — ₹75 Cr, FY27
• We expect to achieve at least ₹1,000 Cr in lending disbursements every quarter going forward, starting Q2FY27. — ₹1,000 Cr, Q2FY27 onwards
• We intend to re-launch [paused card-linked payment categories] in Q2FY27. — Q2FY27
• We expect mature consumer payments revenue to grow 5-6% quarter-on-quarter. — 5-6% QoQ, going forward quarters
• We expect [merchant business] revenue to grow about 25% quarter-on-quarter. — 25% QoQ, upcoming quarters
• On a long-range basis, overall [payments] net take rate will be 12-14 bps. — 12-14 bps, long-range
• On a long-range basis, [financial services] net margin will be 4.5-5.5%. — 4.5-5.5%, long-range
• We expect [merchant business] to break even by FY28. — break-even, FY28
• We expect [merchant business] revenue to ramp up 10x in two years. — 10x, FY28

Key themes

Sustainable profitability, lending growth, merchant expansion

How the narrative shifted

• Sustainable Profitability Turnaround: Management frames Q1 as baseline for sustained full-year profitability, emphasizing three straight profitable quarters and flow-through of incremental contribution.
• Lending Scale-up with Quality: Lending disbursement growth driven by new partners, AI engine, and pre-approved offers, while maintaining credit quality and improving recovery from past book.
• Merchant Acquiring Expansion: Positioning merchant acquiring as a large TAM opportunity with less competition, targeting 10x revenue and break-even by FY28, while managing near-term burn.
• Payments Monetization Pressure: UPI growth dilutes take rates, but management is shifting focus to merchant payments and cost efficiency to sustain gross profit growth.
• Regulatory Headwinds: Regulatory actions—UPI MDR delay, card category guardrails, NBFC license conditions—create friction but company is adapting.
• Cost Discipline and Operating Leverage: Fixed cost anchoring and direct cost compression allow incremental revenue to flow to EBITDA and PAT.

Operational commentary

• Added new lending partners in Q1, more planned in Q2; top-3 lender concentration reduced from 91% to 71%.
• Built AI engine to re-engage users dropping off in lending funnel, targeting ~₹100 Cr incremental quarterly disbursements.
• Targeting ~₹150-250 Cr incremental quarterly disbursements via pre-approved loan offers to 96 Mn engaged non-lending users.
• Merchant GMV grew 17% QoQ to ₹12,500 Cr; offline/online merchant acquiring scale-up on track for 10x revenue ramp in two years and break-even by FY28.
• UPI transactions grew 5x faster than industry; second fastest-growing TPAP; UPI GMV ₹26,900 Cr.
• Paused certain card-linked payment categories due to regulatory guardrails; re-launch expected in Q2FY27.
• NBFC license condition required transitioning digital lending to wholly-owned subsidiary; project expected to complete in August, enabling final CoR request.
• Direct cost compression: payments direct costs down 15% YoY, lending direct costs down 40% YoY.

Analyst Q&A

• Q. What are the key growth levers to accelerate revenue growth after several quarters of muted revenue?

  Management outlined two tracks: lending disbursements to scale from ~₹700 Cr to ₹1,000 Cr/quarter via new partners, AI engine for funnel conversion, and pre-approved offers; payments revenue growth to be driven by re-launching paused card-linked categories and scaling merchant business at 25% QoQ revenue growth, while mature consumer payments grow 5-6% QoQ.

• Q. Can you provide more colour on the merchant rollout and expected scale over the next few quarters and two years?

  Merchant GMV was ₹12,500 Cr in Q1, up 17% QoQ, early signs encouraging; they reiterated last quarter's target of 10x revenue ramp in two years and break-even by FY28, but declined to share merchant revenue or device count numbers yet, citing early stage.

• Q. Are you still confident of the ₹75 Cr EBITDA guidance for FY27 including other income?

  Management confirmed feeling very comfortable with FY27 EBITDA ₹75 Cr and PAT ₹40 Cr, noting Q1 baseline and expected growth in coming quarters.

• Q. Why has lending disbursement degrown over the last two quarters?

  Degrowth attributed to deliberate diversification away from top-3 lender concentration (91% to 71%) and the technology migration required by NBFC license condition; Q2 is already on a ₹1,000 Cr run rate and they expect to make up for Q1 in H2.

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