One Mobikwik Systems544305Earnings call transcript

Q2 FY27 call: highest-ever PAT and EBITDA; merchant payments flagged as the next growth leg

Transcript of the Q2 FY27 earnings call.

By ScoutQuest · Thu 5 Nov 2026, 7:11 PM IST · 3 min read

Total Income: INR 302 crores, up 8% Y-o-Y
Reported EBITDA: INR 22.7 crores, margin 7.5%
Profit After Tax: INR 11.8 crores

Quarter scorecard

Total income of INR 302 crores, up 8% Y-o-Y and 5% Q-o-Q.
Revenue from operations of INR 295 crores, up 9% Y-o-Y.
Reported EBITDA of INR 22.7 crores, a jump of INR 29 crores Y-o-Y and a 44% improvement Q-o-Q.
EBITDA margin of 7.5%, a 977 bps improvement Y-o-Y and 204 bps Q-o-Q.
Profit after tax of INR 11.8 crores, an INR 40 crores improvement Y-o-Y and a 55% jump Q-o-Q.

Management described this as the fourth consecutive profitable quarter and the company's highest-ever PAT and EBITDA.

Why the bottom line improved

Contribution profit jumped 50%, while GMV in both verticals — payments and lending — grew about 34% to 35% Y-o-Y. Fixed costs came in at about 40% of total income. Management's explanation is that contribution gains outpaced the rise in fixed costs, which is what flowed through to profit.

Merchant payments

Merchant GMV grew 76% Y-o-Y and merchant revenue grew 150% Y-o-Y.
On a quarterly basis, merchant GMV improved 18% and merchant revenue 29%.
Net margin in merchant payments improved by 1 bps to 3.4 bps.
Merchant payments is about 22% of total payment GMV, and management expects this share to grow further.

Management said the consumer UPI side has a very large number of players — the company is tracking at number 11 among TPAPs — while on the merchant side it sees 2 to 3 clear competitors. It listed device subscription, card-related MDR, wallet-related MDR, RuPay credit card MDR and the anticipated UPI MDR as tailwinds, and said it is confident of holding the Q2 pace for several quarters.

Consumer UPI and the soft quarter

Management acknowledged a slightly soft quarter on consumer UPI.
It said Q2 is seasonally soft: industry UPI value grew only 1% Q-o-Q in Q2, against roughly 4% quarterly growth in the last 2 quarters (NPCI data), with festive spending shifting to Q3.
UPI MDR was announced around 15th September and was to launch on 15th October; the latest update is that the date moves to sometime after Diwali.
The company said it is focusing on higher quality users and GMV of more than INR 2,000 per transaction, so that volumes convert into revenue once UPI MDR is implemented.

EPS clarification

An investor asked whether the EPS of INR 0.75 shown in the consolidated results was correct, noting that the number of outstanding shares was unchanged while PAT had risen. Management said it could be a typo and that an additional disclosure would be published, uploaded on the investor relations website and the figure updated.

Guidance from management

Confident of delivering stronger revenue growth in the upcoming quarters on the back of both payments and lending.
Continued focus on cost efficiency, use of AI, and pace of product development and innovation.

What a retail investor can take away

The quarter shows profit growth alongside volume growth in both businesses.
Merchant payments is small relative to total payment GMV but growing much faster, and management expects it to keep scaling.
The UPI MDR revenue opportunity is still ahead, with the launch date having moved.
The EPS figure in the results may be corrected, so watch for the company's follow-up disclosure.

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