One Mobikwik Systems Q2 FY26: ₹2,793 Mn Revenue, ₹24.8 Cr EBITDA, Merchant Fraud Drama Worth ₹40 Cr, and a Fintech Soap Opera That Just Won’t Stop!
1. At a Glance
If India’s fintech sector were a daily soap, One Mobikwik Systems Ltd (OMSL) would be the character who’s always in the hospital — but somehow still posting on Instagram. In Q2 FY26, the company reported total income of ₹2,793 million (₹279.3 crore) and a rare positive spark — EBITDA jumped 80% QoQ to ₹24.8 crore. But before investors could uncork the bubbly, the board also disclosed a merchant fraud of ₹40.3 crore.
With a market cap of ₹1,979 crore, MobiKwik trades at ₹252 per share — a long way from its IPO high of ₹698. The company bleeds red ink: PAT at -₹15.2 crore this quarter, TTM loss ₹163 crore, and an ROE of -31.3%. Yet, the fintech still commands a Price-to-Sales ratio of 1.85, thanks to 161 million registered users and 4.26 million merchants who can now buy, sell, or apparently, commit fraud — all on one platform.
Still, the app remains a daily habit for millions of bill-payers, recharge junkies, and credit card procrastinators. Whether it’s “Pay Later,” “Pay Never,” or “Pay Back Eventually,” Mobikwik continues to define India’s fintech chaos — one ZIP loan at a time.
2. Introduction
Let’s be honest — Mobikwik was the OG fintech before “fintech” became the Tinder bio of every startup founder. Launched in 2009, it built one of India’s earliest digital wallets before Paytm turned “scan & pay” into a religion.
Fast forward to 2025: the company has transformed into a full-fledged digital banking platform with products across payments, credit, investments, and insurance. It even got its own NBFC subsidiary — because why partner with lenders when you can just become one yourself?
But as the sector matures, competition has gone from “friendly rivalry” to “Squid Game.” Paytm, PhonePe, Google Pay, BharatPe, and CRED are all clawing for the same customer attention. Amidst this chaos, Mobikwik’s unique pitch is its ZIP credit line — a 30-day interest-free credit and ZIP EMI product that makes instant borrowing feel like ordering pani puri.
Still, despite a product buffet that includes ZIP, ZIP EMI, Lens, Xtra, and digital gold, the company’s financial buffet looks more like leftover Maggi — mildly edible but consistently disappointing.
3. Business Model – WTF Do They Even Do?
Think of MobiKwik as your one-stop “app for everything you shouldn’t be doing with your salary.”
Here’s how their empire is divided:
A. Payment Services (36% of FY24 revenue): They handle UPI payments, bill payments, recharges, fuel pumps, and in-store QR scans. MobiKwik’s Vibe Soundbox literally shouts “Payment received!” louder than your mom during a family argument.
B. Financial Services (64% of FY24 revenue): Where the real spice lies — credit products like ZIP (30-day pay-later), ZIP EMI (up to 24 months), and Merchant Cash Advances. These keep the app sticky but also risky, since “fintech credit” is often just “hope with EMIs.”
C. Investment & Insurance: Through Lens.ai, the company tracks your financial habits (read: shames you for ordering too many Swiggy meals). They distribute mutual funds, digital gold, and fixed deposits.
D. Merchant Side: They provide EDC machines, QR-enabled soundboxes, checkout integrations, and even working capital loans. Essentially, MobiKwik wants to be the payment switchboard of small-town India.
It’s a fascinating two-sided network: consumers spend, merchants accept, and Mobikwik takes a cut — while dreaming of profitability that’s still buffering.
Commentary: Mobikwik’s revenue stagnated, but the operational efficiency improved significantly. However, profitability still remains a myth — and if merchant frauds keep popping up, auditors may need hazard pay.
5. Valuation Discussion – Fair Value Range Only
Method 1: Price-to-Sales (P/S) Approach TTM Revenue = ₹1,072 Cr Industry average P/S (Fintech peers) ≈ 5x Mobikwik current P/S = 1.85x
