One MobiKwik Systems (MOBIKWIK) Q4 24/25 earnings summary

Executive summary

• Payments business achieved over 200% GMV growth year-over-year, reaching INR 1,158.7 billion in FY25, with continued acceleration expected from digitization and new products like Pocket UPI and RuPay Card.

• Lending business faced regulatory headwinds and a 41% drop in digital credit GMV, but is expected to recover in H2 FY26, with positive signals from banking partners and a return to historical contribution margins anticipated.

• Registered user base grew 13.2% year-over-year to 176.4 million, and merchant base expanded 13.1% to 4.6 million as of March 31, 2025.

• Profitability was demonstrated in six of the last eight quarters, but FY25 saw negative EBITDA and net loss due to lower lending margins, higher investments, and one-time adjustments.

• Audited standalone and consolidated financial results for FY25 were approved post-IPO, with statutory auditors issuing unmodified opinions.

Financial highlights

• Payments GMV for FY25 was INR 1,158.7 billion, up 203.4% year-over-year; Q4 FY25 GMV was INR 331 billion.

• Total income for FY25 increased 33.9% year-over-year to INR 11,924.9 million; standalone revenue from operations was INR 11,639.79 million.

• Payments revenue surged 142% year-over-year, with gross margin at 19.7% and contribution margin at 30.3% in FY25.

• EBITDA margin dropped to -6.7% in FY25, with consolidated net loss at INR 1,215.29 million, compared to a net profit in FY24.

• Digital Credit GMV fell 41.1% year-over-year to INR 53.6 billion, reflecting a pause in the Zip product and lower lender appetite.

Outlook and guidance

• Payments GMV is expected to continue doubling annually, with strong growth in UPI, wallet, and RuPay Card use cases.

• Lending business is projected to return to 40% contribution margin as the book stabilizes and regulatory impacts subside, with growth revival expected post Q2FY26.

• Operating leverage from fixed cost reductions and AI-driven initiatives anticipated to drive future profitability.

• IPO proceeds are earmarked for organic growth, R&D in data/ML/AI, payment device capex, and general corporate purposes, with significant unutilized funds remaining.

• Overall company margins are expected to return above 30% as lending recovers and fixed costs are covered.