At a Glance
One Mobikwik just announced Q1 FY26 results, and it’s the same fintech drama: GMV grew 53% YoY to ₹3.84 lakh crore, margins improved, and yet they managed to lose ₹419 crore. Revenue stood at ₹2,713 crore, but the cash burn party continues. The stock trades at ₹246, down 65% from its high, with no P/E because there are no “E”s to speak of. Add low promoter holding (25%) and mounting losses, and this looks like Paytm’s younger, equally confused cousin.
Introduction
Meet One Mobikwik Systems Ltd – the fintech underdog that refuses to quit despite a market that treats loss-making startups like expired milk. With over 161 million users and 4.26 million merchants, the company wants to be India’s PayPal meets Robinhood meets everything app.
The Q1 FY26 numbers? Revenue growth is solid, losses are ugly, and the company is busy collecting licenses like Pokémon cards (now adding stock broking to its kit). Investors are torn: is this the next fintech success story or just another “growth at any cost” saga?
Business Model (WTF Do They Even Do?)
Mobikwik operates a two-sided fintech platform with:
- Payments: UPI, wallets, BNPL, merchant solutions.
- Digital Credit: Short-term loans, pay-later services.
- Investments & Insurance: Small-ticket products to cross-sell.
- Broking (New): Just got a license – because why not?
The model thrives on user acquisition and transaction volume, but monetization is still a work-in-progress. The path to profitability looks like a road under construction with potholes.
Financials Overview
Here’s how Q1 FY26 stacked up:
- Revenue: ₹2,713 crore (+~15% YoY)
- GMV: ₹3.84 lakh crore (+53% YoY)
- EBITDA: Grew 32% YoY but still negative
- PAT: ₹-419 crore loss
- EPS: -₹5.1
FY25 Full Year:
- Revenue ₹1,093 crore
- PAT ₹-151 crore
- OPM: -13%
- ROE: -31%
- ROCE: -13%
Cash flows remain negative, losses widening, and interest costs rising.
Valuation
With losses piling, valuation is tricky. Let’s still try.
1. P/S Method
- Market Cap: ₹1,919 crore
- Sales (TTM): ₹1,093 crore
- P/S: 1.75x
- Fair P/S: 1–1.2 for loss-making fintech
- Fair Value: ₹140 – ₹170
2. EV/GMV
EV/GMV is negligible (as GMV is huge), but investors don’t buy GMV – they buy profits, which are absent.
3. DCF
DCF? Lol. With cash burns, DCF is more science fiction than finance.
Valuation Verdict: Overvalued unless losses narrow soon.
What’s Cooking – News, Triggers, Drama
- 53% GMV Growth: Volume is booming; monetization still lags.
- ₹419 Cr Loss: Bigger than last year, making investors sweat.
- New Broking License: Diversification, but will it help profits?
- Low Promoter Holding: Just 25% – not much skin in the game.
- Competition: Paytm, PhonePe, Google Pay – giants everywhere.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 740 | 870 | 1,394 |
| Liabilities | 587 | 703 | 806 |
| Net Worth | 153 | 167 | 588 |
| Borrowings | 224 | 260 | 332 |
Auditor Remark: Balance sheet is leveraged; losses keep eroding equity.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Ops | 17 | -25 | -62 |
| Investing | -26 | 23 | -315 |
| Financing | 36 | 18 | 515 |
Comment: Survival is fueled by fundraising, not cash from operations.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | -31% |
| ROCE | -13% |
| P/E | N/A |
| PAT Margin | -15% |
| D/E | 0.56 |
Verdict: Stressy. No profitability metrics worth bragging about.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 526 | 867 | 1,093 |
| EBITDA | -79 | 19 | -143 |
| PAT | -83 | 9 | -151 |
Comment: FY24 was the only positive PAT year; FY25 went back to deep losses.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| PB Fintech | 5,315 | 377 | 220x |
| Paytm (One 97) | 7,316 | -500 | N/A |
| Infibeam Avenues | 3,993 | 222 | 23x |
| One Mobikwik | 1,093 | -151 | N/A |
Takeaway: Smaller than peers, with worse profitability.
Miscellaneous – Shareholding, Promoters
- Promoters: 25.03%
- FIIs: 7.08%
- DIIs: 4.74%
- Public: 63.16%
Promoter Bio: Founders still around, but with limited stake. Private equity backers may push for cost cuts.
EduInvesting Verdict™
One Mobikwik’s Q1 FY26 is the perfect fintech cocktail – high growth, high losses, and high drama. The business has scale, with millions of users and merchants, but the path to profitability is murky.
Strengths:
- Strong GMV and user base.
- Expanding product portfolio (credit, broking).
- Improving margins in some segments.
Weaknesses:
- Consistent losses, negative cash flows.
- Low promoter stake, high competition.
- Regulatory risks in fintech lending.
Opportunities:
- Monetization of its massive user base.
- Cross-selling financial products.
- IPO proceeds for expansion.
Threats:
- Burn rate remains high.
- Heavyweights like Paytm & PhonePe dominate.
- Regulatory tightening in BNPL & digital lending.
Final Word: Mobikwik has potential but is bleeding cash. At ₹246, it’s a speculative bet on eventual profitability. If losses persist, investors may need Mobikwik’s own credit line to recover.
Written by EduInvesting Team | 1 Aug 2025SEO Tags: Mobikwik, Fintech Stocks, Q1 FY26 Results, Digital Payments Industry
