One Mobikwik Q2 FY27 Earnings Call — Analysis (NSE: MOBIKWIK)
MobiKwik posted its fourth consecutive profitable quarter with record PAT of ₹11.8 Cr and outlined a ₹100 Cr PAT target for FY28 driven by anticipated UPI MDR tailwinds and NBFC scale-up.
Result quality: strong — Loss reversed. Management sentiment: optimistic.
The take
Q2FY27 Total Income ₹302 Cr ( +8% YoY ) . Guidance raised — FY28 payments revenue upside from up… ₹100 Cr incremental . But missed — Payments Monetization Pressure . New story: Sustainable Profitability Turnaround .
Results
Revenue from operations grew 9% YoY to ₹295 Cr with EBITDA margin reaching a record 7.5% (+977bps YoY) and PAT of ₹11.8 Cr (+55% QoQ).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Total Income | ₹302 Cr | +8% | yoy · Q2FY27 |
| Total Income | ₹302 Cr | +5% | qoq · Q2FY27 |
| Revenue from Operations | ₹295 Cr | +9% | yoy · Q2FY27 |
| EBITDA | ₹22.7 Cr | +44% | qoq · Q2FY27 |
| EBITDA Margin | 7.5% | +977bps | yoy · Q2FY27 |
| EBITDA Margin | 7.5% | +204bps | qoq · Q2FY27 |
| Profit After Tax | ₹11.8 Cr | +55% | qoq · Q2FY27 |
| Lending Disbursals | ₹1,083 Cr | point_in_time · Q2FY27 · Q2FY27 |
Guidance
Management targets FY28 PAT of ₹100 Cr (up from ₹75-80 Cr base) assuming UPI MDR rollout, with FY27 PAT targeted at ₹40 Cr.
What management committed to
- We estimate that in financial year '28, the payments revenue will go up by at least INR 100 crores [due to UPI MDR]. — INR 100 Cr incremental, FY28
- INR 20 crores to INR 25 crores [of the incremental INR 100 Cr revenue from UPI MDR] should flow into the EBITDA or PAT levels. — INR 20-25 Cr incremental EBITDA/PAT, FY28
- We are targeting INR 100 crore PAT for next financial year [FY28] if UPI MDR comes out. — INR 100 Cr, FY28
- We expect to maintain this momentum of growth in the lending disbursal... strong double-digit growth [in upcoming quarters]. — strong double-digit growth, upcoming quarters
- Fixed cost as a percentage of total income should definitely be coming down in the upcoming quarters. — decreasing ratio, upcoming quarters
Key themes
Profitability expansion and UPI MDR optionality
How the narrative shifted
- Sustainable Profitability Turnaround: No longer defensive about turnaround; now actively marketing sustainability as a built track record.
- Lending Scale-up with Quality: Shifted from discussing Q1 migration issues to celebrating execution of the guided greater-than-INR-1000 Cr run-rate and improving partner economics.
- Merchant Acquiring Expansion: Moved from promise of future potential to demonstrating current high growth and profitability path.
- Payments Monetization Pressure: Previously under pressure from UPI dilution; now reframing the pullback as a strategic move to prioritize high-quality GMV ahead of the MDR implementation.
- Regulatory Headwinds: The narrative flipped from 'demoralized by regulatory friction' to 'highly anticipated tailwind creating a level playing field'.
- Cost Discipline and Operating Leverage: Accepted that employee costs will rise as a deliberate build phase, but guided that fixed cost percentage of revenue will decline going forward.
- AI-Powered Efficiency and Product Innovation: AI is cited as a key enabler of cost efficiency and faster product development, alongside AI-driven user acquisition filters in lending and payments.
Operational commentary
- Merchant Payments expansion continues rapidly, now accounting for 22% of total payment GMV with net margin at 3.4 bps.
- Lending active partner count expanded to 11 with the onboarding of 2 new partners; disbursal mix stood at 79% FLDG and 21% pure distribution.
- Credit distribution slump sale migration completed in August 2026; company is awaiting final Certificate of Registration (CoR) from RBI to operationalize its captive NBFC via a 10:90 co-lending structure.
- Consumer UPI GMV experienced sequential softness due to a shift in festive spending to Q3 and deliberate filtering to acquire users with ticket sizes >₹2,000 ahead of UPI MDR monetization.
Analyst Q&A
Q. Why did consumer UPI and PPI GMV decline quarter-on-quarter?
Attributed to industry-wide seasonal softness in Q2, festive demand shifting into Q3, and a strategic pivot away from low-ticket transactions (<₹200) to focus strictly on users with ticket sizes above ₹2,000 in preparation for UPI MDR.
Q. What is the unit economics breakdown and expected EBITDA flow-through from UPI MDR?
Consumer side is expected to yield ~8 bps net directly to the bottom line (20% of 40 bps gross). Merchant acquiring gross take rate will be 40 bps on >₹2,000 transactions, with net realization of 8-10 bps (20-25% margin) after paying issuing/PSP partners ~28 bps.
Q. What is the roadmap and capital allocation strategy for the NBFC license?
The NBFC will operate an asset-light co-lending model (e.g., 10:90 equity/partner split), requiring ~₹60 Cr equity to disburse ~₹600 Cr (aiming for 10% of an illustrative ₹6,000 Cr disbursal base in FY28) to limit on-book credit exposure.
Q. Clarification on reporting discrepancy where reported EPS reduced despite PAT increasing.
Management acknowledged a potential typographical error on Page 5 of the Board results and committed to uploading an exchange disclosure and IR update by the following morning.
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