One MobiKwik Systems Reports Strong Q1 Financial Results as Lending Business Migrates to Subsidiary

<h1>One MobiKwik Systems Reports Strong Q1 Financial Results as Lending Business Migrates to Subsidiary</h1>

One Mobikwik Systems Limited (OMSL) released its earnings presentation for the quarter ended June 30, 2026, highlighting significant growth across both payment and financial services domains while detailing the ongoing migration of its lending business. The company reported a strong start in Q1 FY27, marked by double-digit Gross Profit increases in payments, bolstered by improved credit quality and operational efficiency.

The earnings presentation provided updates on various aspects of the company's operations, including consumer lending activities, payment platform performance, and corporate restructuring milestones related to its Non-Banking Financial Company (NBFC) status.

Payment Platform Growth and Metrics​

The UPI transactions volume saw a substantial increase, growing from 100 Million (Mn) to 230 Mn year-over-year (YoY). The company holds approximately 19% of the total PPI Wallet Gross Merchandise Value (GMV), according to RBI entity-wise statistics.

Platform GMV grew 2.2 times over three years, maintaining a consistent compounding growth rate across bill payments and overall platform activity. Merchant payments also showed strong momentum, growing from 107 Billion (Bn) to 126 Bn Quarter-on-Quarter (QoQ). The company noted that both online and offline channels contribute to merchant earnings, with the Offline Merchant TAM estimated at $1.8-$2.0 Tn by FY28, and Online PG TAM estimated at $792-$880 Bn by FY28.

In terms of payments revenue performance, Gross Margin stood at 37.3%, which was an improvement from 27.9% recorded in Q1 FY26. The company reported that Payments GMV grew 50% YoY and 8% QoQ, with the Net Payment Margin holding firm at 13 Bps, remaining within the guided range of 12-15 bps.

Consumer Lending Business Update​

The migration of the Lending Service Provider (LSP) business to MDSPL (MobiKwik Distribution Services Private Limited), a wholly-owned subsidiary of OMSL, is currently in progress. This transfer involves a slump sale of the LSP undertaking and capital infusion from earmarked IPO proceeds into MDSPL.

Regarding lending performance metrics, credit risk improved by approximately 25%. Repeat loans increased significantly, moving from 35% to 60%. Financial Services (FS) margins saw an increase from 1.12% in Q1 FY26 to 5.87% in Q1 FY27.

The lending portfolio is described as being disciplined and low-risk, with 74% of borrowers under 40 years old and 100% having a bureau score above 700. The company noted that Lending Disbursals were up 6% YoY, with the Distribution Model accounting for 32% and the FLDG (Financial Loan Disbursement Guarantee) Model covering 68%.

The lending product offerings are divided into three cohorts: Super Prime (targeting high income and net worth individuals), Prime (moderate income segment), and Near Prime (targeting younger demographics for working capital and living expenses).

Financial Services Margin Gains​

Revenue from Financial Services (FS) increased by 26% year-over-year, supported by improvements in take rates. The Gross Profit grew by 459% YoY, with the highest quarterly Gross Margin reaching 59.0% in Q1 FY27.

The unit economics data for Financial Services shows a trend of improvement:

The net take rate increased to 5.87% in Q1 FY27, up from 1.12% in Q1 FY26, attributed partly to deferred revenue from the maturing portfolio which saw lower losses compared to FLDG guarantees. Lending Related Expense decreased from 7.30% to 4.08% YoY.

Operational Efficiency and Financial Health​

The company reported significant cost compression at scale. Lending Related Expenses were down 40% YoY and 6% QoQ, a result of improved underwriting and collection performances. Payment Related Expenses were down 15% YoY, despite the 50% YoY growth in GMV.

Finance and Depreciation Cost reached a 6-Quarter Low of ₹81 Mn in Q1 FY27, down 11% QoQ and 24% YoY against ₹92 Mn in Q4 FY26.

Overall company financial health saw improvements, with EBITDA reaching ₹158 Mn and PAT at ₹76 Mn, resulting in positive profits for the third consecutive quarter. The EBITDA margin stood at 5.5% in Q1 FY27, which represents a swing of ₹470 Mn YoY from -11.1% in Q1 FY26.

MOBIKWIK Stock Price Movement​

As of 12:29 PM, shares of One Mobikwik Systems Limited are rallying in live trading, reaching ₹217.12 after surging by 5.80%. The stock has seen high activity today, with a volume of over 10.0 million shares as it climbs from its day's low of ₹206.1.