New Delhi [India], November 4 : Digital payments company MobiKwik reported an improvement in its operating performance for the quarter ended September 30, 2025 (Q2 FY26), supported by lower costs and higher margins.
The Gurugram-headquartered fintech has recorded an EBITDA gain of Rs 24.8 crore, an 80 per cent increase from the previous quarter, reducing EBITDA to Rs 6.4 crore.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization and is a metric used to measure a company's overall financial performance and operating profitability.
According to a release by the fintech, in the payments business, MobiKwik continued to expand its presence, maintaining its position as the leading prepaid wallet in India and among the top three fastest-growing UPI applications.
Commenting on the Company's financial performance and recent developments, Upasana Taku, Chairperson, Executive Director and CFO, MobiKwik, said, "Our performance this quarter reflects the strength of our business fundamentals and focus on sustainable profitability."
"The growth in contribution profit and improvement in EBITDA is a result of disciplined cost optimization and steady gains across both payments and lending. As India's leading Fintech, we are now gearing up to accelerate our play in UPI and digital lending to drive the next phase of our growth" Taku added.
UPI transaction volume grew 3.5 times year-on-year (YoY). The company reported its highest-ever quarterly gross merchandise value (GMV), which rose 53 per cent YoY and 13 per cent quarter-on-quarter (QoQ).
The user base reached 183.5 million, and the merchant base stood at 4.71 million during the quarter. Payments revenue increased 11 per cent YoY, supported by higher transaction volumes and improved monetization. The net processing margin remained steady at 14 basis points, while the gross margin for the payments business rose to 29 per cent, a 71 per cent YoY increase.
In the financial services segment, MobiKwik's ZIP EMI product recorded GMV of Rs 8,071 million, growing more than 16 per cent sequentially. The gross margin for this business increased to 42 per cent.
Gross profit rose 231 per cent QoQ, while lending-related expenses declined to 4.4 per cent of GMV from 7.3 percent in the previous quarter, reflecting lower costs and improved portfolio performance.
At the consolidated level, total income stood at Rs 2,793 million. Direct costs decreased 10 per cent QoQ, leading to a 24 per cent rise in contribution profit to Rs 961 million. Fixed costs declined 5.7 per cent QoQ.
The company stated that its operating discipline and expense management have positioned it to approach profitability in the coming quarters.