MobiKwik Q2 Results: Fintech major reports Rs 3.5 crore profit, revenue at Rs 290.6 crore; Stocks surge 8%

Digital payments company MobiKwik posted a net loss of Rs 3.59 crore for the second quarter ended December 2024, compared to a profit in the same period last year. Despite the setback in profitability, the company’s revenue surged to Rs 290.6 crore, showcasing its growing market presence.
However, the losses narrowed sequentially from Rs 6.61 crore in Q1FY25, reflecting progress in cost optimization and operational efficiency.

Revenue growth offsets profitability concerns

MobiKwik’s total income surged 42 per cent year-on-year to Rs 293.66 crore, driven primarily by the payments segment, which nearly tripled its revenue to Rs 187.7 crore. Sequentially, payments revenue rose 9 per cent. However, income from financial services, including lending products, fell 24 per cent YoY to Rs 102.9 crore and declined 40 per cent QoQ, as the company scaled back small-ticket lending amid challenging macroeconomic conditions.

The company’s revenue growth underscores its expanding user base and adoption of its payment solutions. However, rising operational costs and competitive pressures in the fintech space weighed on its bottom line.

Profitability trends and market position

While the loss this quarter reflects short-term challenges, Mobikwik remains focused on strengthening its position in the digital payments and lending ecosystem. The company's consistent efforts to enhance its offerings, including buy-now-pay-later (BNPL) services and partnerships, continue to attract users and merchants alike.    

Outlook

The stock price reacted positively, climbing over 9 per cent to Rs 609 after hitting an intra-day high of Rs 638 on the BSE.

With robust revenue growth and strategic initiatives underway, Mobikwik’s journey toward sustainable profitability remains one to watch.