MobiKwik returned to profitability in the December quarter, posting a net profit of ₹4 crore in Q3 FY26 after a loss of ₹55.3 crore in the year-ago period, as tighter cost controls and improving margins helped offset relatively modest revenue growth.

The fintech firm reported a year-on-year swing of ₹59.3 crore in profit after tax, marking its first profitable quarter after a prolonged phase of losses. EBITDA stood at ₹15 crore, compared with a loss of ₹42.7 crore in Q3 FY25, reflecting a turnaround of ₹57.6 crore.

Total income for the quarter rose 8% year-on-year to ₹297.2 crore, indicating that profitability was driven less by topline acceleration and more by operating leverage, margin expansion and expense rationalisation.

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Cost discipline drives turnaround

A sharp reduction in fixed costs played a key role in the quarter’s performance. Fixed costs declined to 38% of total income from 42% a year earlier, while contribution profit jumped 76% year-on-year to ₹128.8 crore.

The company said improved unit economics in its core payments business and better credit performance in lending helped support margins. Payments gross margin rose to an all-time high of 37%, while net payments processing margin improved to 17 basis points.

“Our focus on operating efficiency and thoughtful scaling has enabled us to achieve profitability while maintaining growth momentum,” said Upasana Taku, executive director, co-founder and CFO of MobiKwik. “We were confident of achieving profitability in H2 FY26, and we are proud to have delivered on that commitment,” she said.

Payments GMV climbed 63% year-on-year to ₹48,100 crore, marking the 12th consecutive quarter of record-high volumes. UPI transactions grew 3.2 times from a year ago, placing MobiKwik among the five fastest-growing UPI apps in India, according to NPCI data cited by the company.

However, revenue growth remained relatively muted in comparison to GMV expansion, underlining ongoing monetisation challenges in the highly competitive digital payments space.

Lending business recovers

The financial services segment, which had earlier weighed on profitability due to elevated credit costs, showed signs of recovery during the quarter. ZIP EMI loan disbursals rose 126% year-on-year to ₹900 crore, surpassing previous peak levels.

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Gross profit from financial services increased more than four-fold to ₹37.2 crore, while net margin in the segment improved sharply to 4.13% from 1.05% a year earlier, aided by better credit quality and collection efficiency.

Management said the lending business has “fully recovered” from the interim slowdown seen earlier, though it indicated that future growth would be calibrated.