MobiKwik’s Q2 Loss Swells Eightfold to ₹28.6 Cr After ₹40 Cr Fraud Hit

Digital-payments platform One MobiKwik Systems reported a sharp widening of losses for the September quarter (Q2 FY26), with consolidated net loss ballooning to ₹28.6 crore.

The reported loss is roughly eight times the year-ago figure. It comes after the company booked an exceptional provision tied to a fraud episode that drained about ₹40.4 crore from its platform. The results sent the stock lower in early trade.

Fraud Left Dent

The company’s revenue from operations fell 7% year-on-year to ₹270.2 crore, while total income for the half year slipped as well.

On a sequential basis revenue was essentially flat versus the preceding quarter. Management said the consolidated loss narrowed versus the prior quarter, but the exceptional charge linked to the fraud pushed reported losses sharply higher.

The company disclosed that it made provisions of ₹11.8 crore in Q2 to fully cover the remaining unrecovered portion of the fraud, after detecting fraudulent transactions originating from some registered merchants and users in Haryana.

MobiKwik said it has filed an FIR, recovered ₹21.9 crore so far, secured about ₹6.6 crore via merchant affidavits and court orders, and is pursuing recovery of the balance. The firm characterised the episode as a result of an internal glitch that was exploited by bad actors.

Profitability Measures Weakened

Mobikwik’s adjusted EBITDA swung into loss territory and the company reported an EBITDA loss for the quarter.

Management pointed to elevated payment-gateway and operating costs, including higher spending on risk controls, legal and collections, even as it continues efforts to stabilise core volumes and margins. For H1 FY26, the firm’s revenue declined about 14.5% versus the prior year period.

Market Reaction

The company’s stock traded lower after the results were published, reflecting investor concern over the fraud and the outlook for near-term profitability. Observers noted the company remains below some earlier price peaks and must demonstrate improved controls and recovery progress to restore confidence.

Looking ahead, the key variables to watch are the speed and success of recovery efforts against the fraud losses, any regulatory findings from the police probe, and whether the company can arrest revenue declines while containing payment-gateway and fraud expenses.

MobiKwik has previously flagged a roadmap to return to profitability in FY26’s second half; the timing and credibility of that guidance will hinge in part on the final outcome of the Haryana case and on stabilising transaction volumes.