Mumbai: Fintech company MobiKwik on Tuesday reported a 694 per cent year-on-year (YoY) increase in its consolidated net loss for the second quarter (Q2) of FY26, mainly due to a one-time fraud-related charge. The company’s net loss surged to Rs 28.6 crore, compared to Rs 3.6 crore in the same quarter last financial year (Q2 FY25), according to its stock exchange filing.
However, the loss narrowed 31.7 per cent sequentially from Rs 41.9 crore in the June quarter (Q1 FY26). The company booked an exceptional loss of Rs 11.8 crore during the quarter after uncovering a fraud involving some registered merchants and users. These individuals allegedly exploited a technical bug in MobiKwik’s platform to make unauthorised settlements amounting to Rs 40.4 crore.
MobiKwik said it has already recovered Rs 21.9 crore, while Rs 6.6 crore is secured through court orders and merchant affidavits. The remaining Rs 11.8 crore has been fully provided for as an exceptional item in this quarter. The company also filed an FIR in September and appointed a reputed advisory firm to conduct an independent investigation into the incident. The company clarified that the provision for the fraud impacted profitability but did not affect revenue, as it was recorded below the operating level.
MobiKwik’s revenue from operations fell 7 per cent YoY to Rs 270.2 crore in Q2, compared to Rs 290.6 crore a year ago. Revenue also dipped slightly from Rs 271.3 crore in the previous quarter, as per its regulatory filing. At the operating level, the company reported an EBITDA loss of Rs 6.4 crore, compared to an EBITDA profit of Rs 6.8 crore in the same quarter last financial year.
However, this was a 79 per cent improvement over the Rs 31.2 crore EBITDA loss reported in the previous quarter, helped by cost-cutting measures and lower payment processing expenses. MobiKwik’s total expenditure for the quarter stood at Rs 285.7 crore, almost unchanged from Rs 286.9 crore in the year-ago period. The company earns revenue mainly from two business verticals -- payments (through merchant and convenience fees) and financial services (through collection fees, late payment charges, and penal fees).
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