Indian fintech firm MobiKwik reported a consolidated net profit of ₹11.8 crore for the second quarter of the 2027 fiscal year. This marks a turnaround from the ₹28.6 crore loss the company recorded during the same period last year, driven by increased revenue and reduced operational expenses.
Key Financial Highlights
- Net Profit Turnaround: The company shifted from a loss of ₹28.6 crore in Q2 FY26 to a profit of ₹11.8 crore in Q2 FY27.
- Revenue Growth: Operating revenue climbed 9.4% year-over-year, reaching ₹295.7 crore compared to ₹270.2 crore in the previous year.
- Expense Reduction: Total expenses decreased by 1.8% to ₹290.9 crore, largely due to a 10.8% drop in payment processing charges.
- Lending Efficiency: Operational expenses related to lending activities fell significantly by 88.1%, dropping to ₹1.5 crore.
- EBITDA Improvement: The company achieved an EBITDA of ₹22.7 crore, contrasting with an EBITDA loss of ₹6.4 crore in the prior year’s second quarter.
Revenue and Expense Analysis
MobiKwik’s operating revenue showed steady growth, rising 5.1% sequentially from ₹281.5 crore in the first quarter of the current fiscal year. While operating revenue grew, the company noted that other income declined by 22.5% to ₹7.1 crore from ₹9.1 crore in the previous year. When factoring in this other income, the total revenue for the quarter reached ₹302.8 crore, an 8.4% increase year-over-year.
The company attributed its improved bottom line to stricter cost control measures. Payment processing charges, which represent the company’s largest expense, fell to ₹119.5 crore from ₹133.9 crore. Additionally, the company saw a significant reduction in lending operational expenses, which dropped to ₹1.5 crore from ₹12.8 crore in Q2 FY26.
Why it matters: This financial performance highlights the ongoing trend of Indian fintech companies shifting focus from rapid user acquisition to operational efficiency and profitability. For international investors and observers, the ability of a major payments player to sustain profitability through reduced overhead suggests a maturing digital payments ecosystem in the region.