Shares of One Mobikwik Systems (Mobikwik’s parent) picked up a strong pace in Tuesday’s afternoon session. The stock jumped 14.32 per cent to hit a day high of Rs 638. Today’s sharp upmove came even as the fintech player posted a consolidated year-on-year (YoY) net loss of Rs 3.59 crore in the quarter that ended on September 30, 2024 (Q2 FY25). The company had posted a profit of Rs 5.23 crore in the year-ago period (Q2 FY24). This is the first quarterly results of the company after its recent bumper listing at exchanges on December 18 last year.
However, Mobikwik narrowed its losses on a sequential basis. It had posted a loss of Rs 6.62 crore in the previous quarter (Q1 FY25). The company said it reported a net loss in Q2 FY25 on account of continued investments in the business for the next growth phase.
“Driven by improvements in the contribution margin coupled with optimized cost, the company recorded EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the quarter at Rs 6.8 crore,” it added.
During the quarter under review, revenue from operations surged 42.86 per cent to Rs 290.65 crore as against Rs 203.45 crore in the corresponding period last fiscal (Q2 FY24).
In Q2 FY25, MobiKwik mentioned that it demonstrated solid financial performance, primarily driven by the expansion of its payments business. The company reported a substantial increase in Payments GMV, which grew by 267.3 per cent YoY.
Upasana Taku, Executive Director & Co-founder & CFO of One MobiKwik Systems, said, “We are thrilled to announce our first quarterly results post-listing, marking a significant milestone in Mobikwik’s journey. The strong growth in our payments business demonstrates our ability to scale while maintaining strong contribution margins. The Company continues to work on balancing growth and profitability, by increasing market share and launching innovative products.”
An analyst suggested not to enter the counter at current levels. Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, “Investors should book some profit at current market price. Those wanting to hold it should keep a stop loss placed of Rs 620. That said, fresh buying not advised.”
Mobikwik, a 15-year-old Gurugram-based fintech company, is transforming digital payments with innovations like Pocket UPI, a product that enables users to make UPI (Unified Payments Interface) transactions through their MobiKwik wallet rather than directly linking a bank account. It claims to be the largest digital wallet in India with a 23 per cent market share of the PPI wallet gross transaction value (GTV) as of November 2024.
The company’s registered user base now stands at 16.7 crore with an addition of 60 lakh users in Q2 FY25.
