One Mobikwik Systems Ltd Management Discussions

India remained the fastest-growing major economy globally during FY26, recording provisional real GDP growth of 7.7%, demonstrating resilience amid geopolitical uncertainties, global trade realignments, inflationary pressures across advanced economies, and evolving monetary conditions.™

Growth was driven primarily by strong domestic demand, private consumption and investment activity. Private Final Consumption Expenditure (PFCE) accounted for approximately 61.4%-61.5% of GDP, the highest share since FY12, supported by moderating inflation, improving household purchasing power and resilient urban consumption.™ Gross Fixed Capital Formation (GFCF)

INFLATION AND PURCHASING POWER

FY26 witnessed a substantial moderation in inflationary pressures. The Economic Survey highlighted a significant moderation in inflation during the year, supported by easing food prices, improved agricultural output and relatively stable commodity prices.[2]

Lower food inflation improved household purchasing power and supported consumption growth across both essential and discretionary spending categories. Moderating inflation also strengthened real income

remained robust, supported by sustained infrastructure investment and public capital expenditure.[1]

The services sector continued to be the principal driver of economic expansion, supported by financial services, technology, telecommunications, retail trade and consumer-facing industries. Manufacturing activity remained stable, while agricultural performance benefited from favourable conditions and improving rural demand.[2]

The broad-based expansion in economic activity strengthened transaction intensity, accelerated participation in formal financial systems and supported growing adoption of digital financial services.

growth, particularly among middle- and lower-income households, thereby supporting broader participation in financial services and digital commerce.[4]

The softer inflation environment contributed to improved affordability, enhanced consumer confidence and reduced stress across retail borrower segments. These conditions created a supportive backdrop for payment growth, consumer spending and financial activity across the broader economy.

Inflation moderation enabled the Reserve Bank of India (RBI) to gradually ease monetary policy during FY26. The policy repo rate was reduced cumulatively during the fiscal year as the central bank balanced growth support with financial stability objectives.[5]

Credit conditions improved across the economy, supported by stronger banking sector fundamentals, healthier balance sheets and improving asset quality. The banking system remained well-capitalised, while declining

non-performing assets strengthened confidence across financial markets and lending ecosystems.[2]

The Economic Survey highlighted that banking sector indicators reached multi-year highs, with stronger capital adequacy levels, improving profitability and declining stress assets.[2] The healthier financial environment supported broader credit availability and strengthened the operating backdrop for technology-enabled financial services, digital lending and consumer finance ecosystems.

Indias labour market remained resilient during FY26, supported by economic growth, infrastructure development and continued formalisation across industries. Rising participation in organised employment and increasing digitisation of business activity improved income visibility and strengthened access to formal financial channels.

The continued expansion of digital payroll systems, GST- linked ecosystems and formal banking relationships accelerated the transition of economic activity into the organised sector. Simultaneously, the growth

of platform-based employment and gig economy participation expanded financial inclusion among digitally connected consumer segments.

Increasing availability of digital income records and transaction histories enhanced transparency across the financial system and strengthened the effectiveness of data-driven credit assessment frameworks. These developments contributed to greater access to payments, lending and financial products across previously underserved populations.

FISCAL POLICY AND HOUSEHOLD DISPOSABLE INCOME

Fiscal policy continued to support economic growth while maintaining a commitment to fiscal consolidation. The Union Budget FY26 focused on improving household disposable income, strengthening consumption and sustaining infrastructure-led growth.[6]

Income tax rationalisation measures enhanced consumer purchasing power and supported discretionary spending across urban and semi-urban markets. Simultaneously, continued public investment in transportation, logistics,

urban infrastructure, digital connectivity and public services contributed to job creation and productivity gains.[6]

The fiscal deficit remained on a path of consolidation, reflecting a balanced approach between growth support and fiscal discipline. Government expenditure continued to strengthen the broader economic ecosystem while supporting formalisation, connectivity and financial inclusion.

DIGITAL PUBLIC INFRASTRUCTURE

Indias Digital Public Infrastructure (DPI) continued to evolve as one of the most advanced and scalable digital ecosystems globally. Foundational platforms such as Aadhaar, DigiLocker and the broader India Stack framework continued to strengthen accessibility, efficiency and transparency across public and private services.[7]

Aadhaar-based digital identity infrastructure simplified verification processes and improved access to government services, while DigiLocker enabled secure storage and sharing of authenticated digital documents.

The continued expansion of India Stack supported interoperability across institutions and enhanced the efficiency of service delivery.

The ongoing development of digital infrastructure has reduced administrative friction, strengthened governance

outcomes and accelerated Indias transition toward a digitally enabled economy.

For digital financial services platforms, this infrastructure strengthens customer onboarding, verification, transaction confidence and access to formal financial products.

REGULATORY AND POLICY ENVIRONMENT

Indias regulatory and policy environment continued to evolve in support of economic growth, consumer protection and institutional resilience.^

During FY26, policymakers focused on strengthening governance standards, enhancing cybersecurity preparedness, improving data protection frameworks and promoting responsible digital adoption. Continued

emphasis on transparency, accountability and secure management of digital information reinforced confidence across the broader economic ecosystem.

The ongoing focus on governance reforms, digital trust and consumer safeguards is expected to support sustainable economic development and strengthen Indias long-term competitiveness.

INFLATION

Inflation is expected to normalise during FY27 following the exceptionally benign conditions experienced during FY26. The RBI has projected inflation at approximately 5.1%, while cautioning that risks remain linked to energy prices, commodity markets, geopolitical developments and weather-related disruptions.? Food inflation, crude oil prices and global supply-chain conditions remain important variables influencing the inflation outlook. Nevertheless, inflation is expected to remain broadly aligned with medium-term macroeconomic stability objectives.

MONETARY AND CREDIT

Following the easing cycle witnessed during FY26, monetary policy is expected to remain focused on balancing inflation management with growth support. Policy rates are expected to remain broadly stable while the RBI continues to monitor evolving global and domestic conditions.[8] Credit demand is expected to remain healthy, supported by strong banking sector fundamentals, improving asset quality and expanding participation in formal financial systems.

FISCAL AND CONSUMPTION

The government is expected to continue pursuing fiscal consolidation while sustaining infrastructure-led growth. Household consumption growth is expected to be increasingly supported by employment conditions, income growth and private sector activity. Urban demand is expected to remain resilient, while rural consumption will continue to be influenced by agricultural performance and monsoon outcomes.

REGULATORY

The regulatory environment is expected to continue evolving in response to increasing digitalisation, growing cybersecurity requirements and the expanding use of data- driven technologies across the economy.[5] Policymakers are expected to focus on strengthening institutional resilience, enhancing digital trust and supporting innovation while maintaining appropriate safeguards for consumers and businesses.

DIGITAL PAYMENTS INDUSTRY

Indias digital payments industry maintained strong growth during FY26. Consumer preference for digital transactions continued to rise. Merchant acceptance infrastructure expanded. Innovation across payment platforms accelerated. [1] Transaction activity grew across retail purchases, bill payments, mobility, e-commerce and service-based categories. Digital payments are now a core part of everyday economic activity.

Merchant adoption of digital payment methods widened across both urban and emerging markets. [2] Advances in payment technologies, interoperability and user experience improved convenience and accessibility. As transactions become further embedded within consumer and business activity, the industry is well-positioned for continued expansion.

MERCHANTPAYMENTS AND ACCEPTANCE ECOSYSTEM

Merchant digitisation accelerated during FY26. Businesses across sectors adopted digital payment acceptance solutions to improve customer convenience and operational efficiency12 Consumer demand for frictionless payment experiences drove merchants to expand their digital acceptance capabilities across offline and online channels.

The acceptance ecosystem evolved beyond transaction processing. Merchants now seek integrated solutions that combine payments with value-added business services. Growing adoption among small businesses, organised retailers and online merchants contributed to a more connected commercial ecosystem. [3] The increasing uptake of integrated payment solutions and merchant-focused digital services is expected to support sustained growth across the acceptance ecosystem.

DIGITAL LENDING INDUSTRY

Indias digital lending industry continued to evolve during FY26. Credit demand improved. Data-driven underwriting advanced. Technology-enabled lending models gained wider adoption. [4] Financial institutions and fintech platforms leveraged digital capabilities to enhance customer acquisition, streamline loan origination and improve efficiency.

Participation grew across consumer and small-business lending segments as technology-enabled models improved accessibility. [4] Innovation in credit assessment methodologies and lending workflows supported broader access to formal credit.

As digital ecosystems mature and financial institutions adopt technology-led operating models, digital lending will play a larger role in expanding credit access and strengthening financial intermediation.

DIGITAL FINANCIAL SERVICES INDUSTRY

The digital financial services ecosystem expanded beyond payments and lending during FY26. Industry participants broadened product offerings across categories, including investments, savings, insurance and wealth management. [5]

The convergence of financial products within digital ecosystems is driving the development of more comprehensive, customer-centric service models.[5] Industry participants are expected to focus on personalisation, customer engagement and integrated financial experiences to strengthen adoption and long-term customer value.

TECHNOLOGY TRANSFORMATION IN FINANCIAL SERVICES

Technology remained a key driver of transformation across financial services during FY26. Financial institutions and fintech companies invested in artificial intelligence, automation, analytics and digital infrastructure to improve customer experience, operational efficiency and risk management. [6]

The adoption of these technologies enabled faster decisionmaking, improved fraud detection, greater operational scalability and more personalised customer engagement. Technology also played a role in streamlining processes, reducing turnaround times and improving service quality across products and customer touchpoints. Technology is expected to remain a critical enabler of competitiveness and long-term industry growth.

regulatory landscape

The regulatory environment continued to evolve alongside the growth of digital financial services. Policymakers and regulators remained focused on promoting responsible innovation, strengthening governance and supporting sustainable development of the ecosystem. [7]

Regulatory developments during the year aimed to enhance transparency, improve governance standards and reinforce confidence across digital financial services. Engagement between regulators and industry participants contributed to frameworks that balance innovation with appropriate consumer and institutional safeguards. The evolution of regulatory standards is expected to support long-term sector stability while fostering innovation and encouraging wider adoption of digital financial services.

During FY26, the Reserve Bank of India introduced several specific measures aimed at strengthening lending governance, payment security and ecosystem resilience. The Digital Lending Directions, 2025, established a comprehensive framework for digital lending by prescribing conduct, disclosure, monitoring and reporting requirements for regulated entities and their lending partners. The Master Direction on Payment Aggregators strengthened governance, merchant due diligence, settlement and fund-flow requirements, while the Authentication Mechanisms for Digital Payment Transactions Directions, 2025 introduced an enhanced framework for two-factor authentication with at least one dynamic factor for digital payment transactions. These developments are expected to reinforce consumer trust, strengthen regulatory oversight and support the sustainable growth of Indias digital financial services ecosystem.

FY27 OUTLOOK

Indias fintech ecosystem is expected to maintain growth momentum during FY27. Digital adoption continues to rise. Merchant digitisation is expanding. Demand for technology- enabled financial solutions is growing. Innovation across financial services continues to accelerate. [1][3]

The convergence of payments, lending, financial services and technology is expected to drive the development of integrated digital ecosystems that address a wider range of consumer and business needs. Customer engagement, investment in technology and supportive regulatory developments are expected to create favourable conditions for sustained sector growth.

As the industry matures, participants are expected to focus on innovation, operational efficiency, customer experience

and value-added services to strengthen competitiveness and long-term value creation. [6][7]

These industry trends are directly relevant to MobiKwiks operating model. The expansion of digital payments, merchant acceptance, digital credit and integrated financial services supports the Companys focus on wallet- led payments, UPI and Pocket UPI, merchant acquiring, partner-led and NBFC-enabled lending and AI-supported platform efficiency. As the industry moves towards scale, monetisation discipline and value-added services, platforms with strong customer engagement, merchant reach and risk-management capabilities are expected to be better positioned.

ABOUT THE COMPANY

MobiKwik is a digital financial services platform offering payments, credit and financial services to consumers and merchants through an integrated, technology-led ecosystem. The Company serves 189.6 Mn registered users and 4.9 Mn merchants through wallet, UPI, Pocket UPI, recharge and bill payments, online and offline merchant acceptance solutions, and digital credit and financial products.

The payments business forms the foundation of the ecosystem. It enables high-frequency customer engagement across everyday use cases. The Companys wallet heritage, UPI capabilities and Pocket UPI proposition support transaction frequency, customer convenience and platform relevance within Indias digital payments landscape.

MobiKwik continues to strengthen its merchant payments and financial services businesses. Offline merchant acquiring operates through QR, Soundbox and EDC devices. Online merchant acquiring operates through Zaakpay. The receipt of in-principle NBFC approval creates opportunities to expand monetisation, deepen merchant engagement and participate more directly across the digital credit value chain.

Technology, data analytics and artificial intelligence are central to MobiKwiks operating model. The Company leverages automation, AI-led workflows, risk analytics and platform scalability to improve customer experience, strengthen underwriting and collections, and enhance operational efficiency.

BUSINESS PERFORMANCE REVIEW

CORE payments Business

Payment GMV reached C1,821,000 Mn during FY26, with Q4 marking the thirteenth consecutive quarter of record- high GMV, driven by rising adoption across wallet, UPI, Pocket UPI, recharge and bill payments. MobiKwik retained its position as Indias largest wallet by gross transaction value, with Pocket UPI strengthening wallet relevance within the UPI ecosystem by enabling UPI payments through wallet balances.

The growing share of low- or zero-MDR UPI transactions continued to influence monetisation. The Company focused on improving payment margins, lowering processing costs, reducing incentive intensity and strengthening monetisable categories — gross payment margins reached an all-time high of 33.4% for FY26.

margin expansion
Metric	FY26 Result	Driver
Payment gateway cost	Reduced from 0.48% to 0.29% of GMV	Gateway renegotiation and routing efficiency
User incentives	Reduced from 0.05% to 0.02% of GMV	Organic engagement replaced promotional dependency
Net payment margin	16 bps on GMV	Restored to FY24 levels despite UPI take rate halving from 83 bps to 47 bps
Payment gross margin	33.40%	All-time high

CREDIT AND FINANCIAL SERVICES BUSINESS

The financial services portfolio underwent a fundamental quality transformation in FY26, with Super Prime borrowers now constituting 32% of the book — up from less than 10% a year ago — reflecting a deliberate shift toward high-income, credit-worthy customers with monthly incomes above ^ 0.3 Mn and loan sizes exceeding ^5 lakh. This shift, together with the stabilisation of margins following the prior-year accounting policy change and the reduction in disbursals, contributed to the recovery in FS gross margin from 4.3% in Q4 FY25 to 58.5% in Q4 FY26.

portfolio composition by segment
	Super Prime (32%)	Prime (46%)	Near Prime (22%)
Borrower profile	Monthly income above ^3 lakh; excellent credit history; loan sizes above ^5 lakh; high-limit credit card usage	Monthly income ^1-3 lakh; good credit history; loan sizes ^1-5 lakh; active credit card usage	Monthly income up to ^1 lakh; moderate credit history; loan sizes up to ^1 lakh; younger, lower card penetration
Primary need	Investment and lifestyle	Investment and lifestyle	Working capital and living expenses
Channel	Distribution only — proprietary scoring drives eligibility without FLDG support	Distribution and FLDG simultaneously — flexibility to optimise yield vs. scale	FLDG only — co-created filtration with lending partners; in-house scorecards where bureau data is thin
Notable characteristic	Strongest LTV profile; lowest default propensity; largest driver of margin recovery	Largest segment by volume; core of the lending book	Natural graduation pathway into Prime as repayment history builds

 

key metrics, yoy
Metric	Change
Super Prime mix	Less than 10% to 32%
Credit risk performance	Improved 35%
Repeat loan share	20% to 63.5%
FS net margin	0.35% to 5.39%

KEY FOCUS AREAS

• Distribution partnerships for premium customer acquisition

• FLDG policy refinement for risk control

• Improved risk-based pricing for product-market fit

• Repeat business growth through personalised offers

• Collections infrastructure investment

BORROWER BASE: YOUNG, SALARIED AND CREDIT- READY

• Quality cohort, not mass market — 95% of borrowers are under 40, and 100% carry a bureau score of 700+, confirming zero sub-prime exposure.

• Young and digitally native — the 31-35 age band is the largest cohort (26%), followed by under-25 (25%) and 26-30 (23%), a demographic with long platform lifespans and high repeat-borrowing propensity.

• Balanced occupation mix — 53% salaried, 47% selfemployed, diversifying income-source risk while maintaining consistent credit standards.

• Pan-India distribution — South (34%), North (32%), West and Central (22%), East (12%), reducing concentration risk.

• Proven stickiness at scale — 63% of credit GMV comes from repeat users versus 37% new, validating the platforms lifetime-value thesis.

PORTFOLIO RECOVERY—THE NUMBERS

FS gross margin for the full year was 44.2%, reaching 58.5% by Q4 FY26 — a recovery from a trough of 4.3% in Q4 FY25. Gross profits grew 1,775% year-on-year in Q4; H2 FY26 gross profits from FS were ^824 Mn versus ^333 Mn in H1, a 2.5x improvement within the year.

The improvement is structural rather than cyclical: Super Prime mix rose from under 10% to 32%, credit risk performance improved 35%, and repeat loan share rose from 20% to 63.5%. All bureau scores are 700+, and 95% of borrowers are under 40. Lending-related expenses fell 32% year-on-year to ^1,462 Mn as vintage cohort gains

flowed through, and net FS margin crossed 5% in Q4 — a new high. The Companys scorecards have now been tested across ^1,80,000 Mn of disbursals over seven years.

The credit and financial services business delivered a meaningful improvement during FY26, prioritising responsible lending, repeat customers and higher- quality borrower cohorts as underwriting tightened and collections strengthened. This built on the portfolio recalibration undertaken the previous year, with the Company continuing to pursue sustainable credit growth over volume-led expansion.

MERCHANT BUSINESS

Merchant payments emerged as a strategic growth area during FY26. While consumer payments drive platform engagement, merchant payments offer stronger monetisation through MDR, device and settlement economics. Offline acquiring scaled through QR, Soundbox and EDC devices, while online merchant acquiring scaled through Zaakpay, which received the full Online Payment Aggregator (PA) licence from the Reserve Bank of India

during the year. The merchant base reached 4.9 Mn by the close of FY26.

As the Company deepens merchant relationships, it can expand into value-added services, settlement solutions and merchant credit — creating a pathway to convert payments scale into a broader merchant-focused financial services platform.

NBFC-LED LENDINg

The receipt of the Companys in-principle approval for the NBFC licence on April 27, 2026 marks an important strategic milestone in its financial services journey, strengthening its ability to participate across the digital credit value chain. The licence provides flexibility to design credit products, enter co-lending partnerships and selectively explore own-book lending, enabling the Company to evolve from a distributor to a more direct participant in digital credit.

This transition builds on the underwriting capabilities and collections expertise developed over the past seven years, including the FY26 recovery that delivered six consecutive quarters of improving vintage performance. The NBFC platform enhances product velocity by providing greater control over product structure, underwriting approach and customer segmentation, while reducing dependence on lender approval cycles. It also expands access to

co-lending opportunities with fewer structural constraints than the First Loss Default Guarantee (FLDG) model and enables the Company to retain a larger share of lending economics through selective own-book lending on proven customer cohorts. In addition, the Companys merchant ecosystem of 4.9 Mn merchants, with an average ticket size of approximately ^90,000, provides a strong foundation for expanding into merchant credit using proprietary transaction data.

The NBFC-led model complements the existing partner- led approach, with portfolio quality, regulatory compliance and disciplined capital allocation remaining the governing priorities. The NBFC subsidiary is expected to become operational within 3-6 months, with co-lending operations expected to commence within 6-9 months.

KEY STRATEGIC DEVELOPMENTS DURING FY26 AND RECENT Developments

FY26 marked an important year in MobiKwiks growth journey. The continued scaling of Pocket UPI strengthened the Companys differentiated payments proposition and enhanced wallet relevance within the UPI ecosystem. RBI approval of the Groups NBFC application represented a significant strategic milestone, creating a pathway for greater participation across the digital credit value chain, subject to receipt of the Certificate of Registration and commencement of operations. The Company also strengthened its merchant payments infrastructure, expanded AI-led operating capabilities and continued investing in product innovation to support long-term growth across its integrated fintech ecosystem.

Three regulatory milestones in twelve months — RBI approval of the NBFC application (April 27, 2026), an Online Payment Aggregator licence (RBI, April 30, 2025) and a stock-broking licence (SEBI, July 1, 2025) — strengthened the regulatory foundation for lending, online merchant acquiring and full-spectrum wealth offerings.

Credit portfolio reset completed: Super Prime mix expanded from under 10% to 32%, repeat borrowers from 20% to 63.5%, and FS gross margin recovered from 4.3% to 58.5% in four quarters, confirming the two-year quality rebuild was structural and not cyclical.

Merchant payments infrastructure built; ^550 Mn deployed in FY26 to scale offline merchant acquiring (QR, Soundbox, EDC) to 4.9 Mn merchants and activate Zaakpay under the full Online PA licence, with Q4 FY26 gateway GMV reaccelerating 118% YoY to ^19.6 Bn.

AI operations activated at scale: KwikCollect launched handling 55% of early-stage collections via AI, 86% of customer queries self-served, 80%+ of code AI-generated, and 100% of reconciliation automated- all measurable outcomes contributing directly to flat fixed costs despite 57% GMV growth.

Chief Risk Officer appointed and governance strengthened: Anis Pathan joined as CRO in March 2026 ahead of NBFC operations, with board independence at 63% and CEO-Chair separation in place, building the governance foundation required for the next phase of regulated business expansion.

MobiKwik delivered a strong improvement in financial performance during FY26, supported by sustained growth in its payments business, recovery in lending profitability and continued focus on operational efficiency. The year marked a significant turnaround in profitability, with the Company successfully restoring margins and achieving positive earnings momentum during the second half of the year.

REVENUE PERFORMANCE

The Companys performance was supported by continued expansion across its core business segments. The payments business maintained strong growth momentum, with FY26 payment GMV reaching ^1,821,000 Mn, representing 57% year-on-year growth. During Q4 FY26, payment GMV reached an all-time high of ^ 5,24,000 Mn, reflecting 58% year-on-year growth. Growth was driven by increasing adoption of UPI, continued relevance of the wallet ecosystem and strong customer engagement across digital payment solutions. While the increasing share of zero-MDR UPI transactions continued to influence revenue realisation, the Company maintained healthy monetisation through product diversification, cost optimisation and growth in value-added offerings.

The financial services business also recorded a significant improvement in operating performance during the year, supported by stronger portfolio quality, disciplined underwriting and improved collections efficiency. Enhanced contributions from repeat and higher-quality borrowers, together with lower credit costs, drove stronger profitability across the lending portfolio.

PROFITABILITY PERFORMANCE

FY26 represented a significant milestone in the Companys profitability journey. Following a period of portfolio recalibration and margin restoration, MobiKwik reported positive EBITDA and PAT performance during the second half of the year. The Companys core payments and lending businesses generated approximately ^500 Mn of segment- level EBITDA, before corporate and other unallocated costs, reflecting the strength of its underlying operating model and improved unit economics. On a consolidated basis, EBITDA for FY26 stood at ^(51.95) Mn, moving to near break-even from ^(793.99) Mn in FY25.

During Q4 FY26, EBITDA stood at ^174 Mn, while reported Profit After Tax was ^ 44 Mn despite a onetime exceptional charge relating to labour code changes. Excluding this exceptional item, the underlying PAT would have been ^ 81 Mn. The Company reported cumulative PAT of ^84 Mn during the second half of FY26, demonstrating the sustainability of its profitability improvement.

MARGIN EXPANSION AND OPERATING EFFICIENCY

Margin expansion remained a key highlight during the year. The payments business achieved industry-leading economics, with net payment margins reaching 16 basis points while maintaining strong transaction growth. Gross margins expanded to an all-time high of approximately 39% in Q4, supported by reductions in payment gateway costs, lower incentive intensity and improved operating leverage.

UNIT ECONOMICS

Unit economics for both the payments and financial services businesses strengthened through FY26, with margin gains decoupled from the ongoing dilution in UPI take rates and structural improvements visible on both a quarterly and full- year basis.

PAYMENTS BUSINESS - QUARTERLY TREND (BPS)

Particulars (in bps)	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26
Payments Revenue	64	56	48	47	40
Payments Gateway Costs	-44	-37	-31	-27	-23
User Incentive Costs	-4	-3	-3	-2	-2
Net Payments Margin	15	15	14	17	16

• Payments GMV grew 58% YoY and 9% QoQ, with Net Payments Margin holding firm at 16 bps.

• The Company expects consistent GMV growth with a stable Net Payments Margin going forward.

PAYMENTS BUSINESS - ANNUAL TREND (% OF PAYMENTS GMV, BPS)

Particulars (in bps)	FY24	FY25	FY26
Payments Revenue	83	66	47
Payments Gateway Costs	(53)	(48)	(29)
User Incentive Costs	(14)	(5)	(2)
Net Payments Margin	16	13	16

• Net Payments Margin recovered to 16 bps despite take rates almost halving from 83 bps to 47 bps.

• Gateway costs declined by 24 bps (53 to 29), absorbing the entire revenue take-rate compression.

• FY26 unit economics remained structurally above the guided 12-15 bps band, with the UPI transition now fully digested.

FINANCIAL SERVICES BUSINESS - QUARTERLY TREND (% OF DIGITAL CREDIT GMV)

Particulars	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26
Revenue from Financial Services	8.25%	8.41%	7.59%	7.24%	9.21%
Lending Related Expense	-7.90%	-7.30%	-4.42%	-3.11%	-3.82%
Net Financial Services Margin	0.35%	1.12%	3.17%	4.14%	5.39%

• Gross take rates reached a high of 9.21% in Q4 FY26, up from 7.24% in Q3 FY26.

• Lending Related Expense decreased from 7.90% to 3.82% YoY, reflecting improving credit quality.

• Net take rate increased as deferred revenue flowed through and the maturing portfolio recorded lower losses from FLDG guarantees.

• RBI restrictions on BNPL and the 5% FLDG cap created structural headwinds that front-loaded expenses while back- ending revenues between Q3 FY25 and Q1 FY26; normalisation was achieved in Q2 FY26.

FINANCIAL SERVICES BUSINESS - ANNUAL TREND (% OF DIGITAL CREDIT GMV)

Particulars	FY24	FY25	FY26
Revenue from Financial Services	6.14%	7.52%	8.09%
Lending Related Expenses	(3.33%)	(4.01%)	(4.51%)
Net Financial Services Margin	2.80%	3.51%	3.57%

• Take rate rose to 8.09%, reflecting restored pricing power alongside improved credit quality.

• A shift in product mix led to an increase in lending related expenses, which showed significant improvement in H2 FY26.

• Net FS Margin reached 3.57%, within the guided 3-4% band and up 77 bps over two years, with further improvement expected once NBFC operations commence.

balance ShEET and Liquidity position

The Company maintained a strong liquidity position during FY26, supported by capital raised through its public offering and prudent capital management. Management indicated that approximately ^4,340 Mn of net unencumbered cash remained available to support strategic investments in merchant payments, technology initiatives and the development of the NBFC platform. The Companys healthy liquidity position provides flexibility to pursue growth opportunities while maintaining financial resilience.

FINANCIAL OuTLOOk

During the financial year under review, the Company has prepared its financial statements in accordance with the applicable Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules made thereunder. No treatment different from that prescribed under the applicable Accounting Standards has been followed in the preparation of the financial statements. Accordingly, no alternative accounting treatment requiring disclosure or management explanation has arisen during the year.

The Company enters FY27 with a stronger operating foundation, supported by profitable core businesses, improving lending economics and continued investment in future growth engines. Strategic initiatives in merchant payments, NBFC-led lending and artificial intelligence are expected to support long-term value creation while strengthening the Companys position within Indias digital financial services ecosystem.

KEY RATIOS
Ratio / Measure	Methodology	31-Mar- 26	31-Mar- 25	Variance	Reason for Variance
Current Ratio	Current Assets / Current Liabilities	1.47	1.59	-7%
Debt-Equity Ratio	(Non-current Borrowings + Current Borrowings) / Total Equity	0.48	0.46	-5%
Interest Coverage Ratio	EBITDA / (Interest Expense + Borrowings)	-0.02	-0.27	93%	Interest Coverage Ratio has improved from (0.27) as at 31 March 2025 to (0.02) as at 31 March 2026 mainly due to relative increase in EBITDA as compared to previous year
Return on Equity (Return on Investment Ratio)	Profit/(Loss) for the Year / Total Equity	-0.12	-0.21	44%	Return on Equity Ratio has improved from (0.21) as at 31 March 2025 to (0.12) as at 31 March 2026 mainly due to decrease in loss incurred during the year as compared to the previous year
Trade Receivables Turnover Ratio	Revenue from Operations / Average Trade Receivables	17.34	17.07	2%
Trade Payables Turnover Ratio	Total Expenses Net of Employee Benefits Expense / Average Trade Payables	9.74	6.6	48%	The trade payables turnover ratio increased from 6.6 as at 31 March 2025 to 9.74 as at 31 March 2026 mainly due to decrease in other expenses and decrease in average trade payables.
Net Capital Turnover Ratio	Revenue from Operations / Capital Employed	1.4	1.36	3%
Net Profit Ratio	Profit/(Loss) for the Year / Revenue from Operations	-0.06	-0.1	47%	The Net Profit Ratio has improved from (0.1) as at 31 March 2025 to (0.06) as at 31 March 2026 mainly due to reduction in loss incurred during the year.
Return on Networth	Earnings Before Interest and Taxes (EBIT) / Capital Employed	-2.37	-10.73	78%	The return on capital employed ratio improved from (10.73) as at 31 March 2025 to (2.37) as at 31 March 2026 mainly due to increase in EBIT as compared to previous year.

 

EBITDA PERFORMANCE R MN)
Particulars	Quarter Ended	Fiscal Year
	Mar-25	Dec-25	Mar-26	Mar-24	Mar-25	Mar-26
EBITDA	-457.61	149.72	174.1	372.2	-793.99	-51.95
EBITDA Margin (%)	-16.40%	5.00%	5.88%	4.20%	-6.70%	-0.50%

 

PAT Margin (%)
Particulars	Quarter Ended	Fiscal Year
	Mar-25	Dec-25	Mar-26	Mar-24	Mar-25	Mar-26
PAT Margin (%)	-20.1%	1.4%	1.5%	1.6%	-10.2%	-5.4%

Note

Please note that these figures are based on the consolidated financial statements. Additionally, the Net Profit Margin (NPM) ratio presented in the Key Ratios table has been calculated using Revenue from Operations, whereas the Companys internal KPIs compute NPM using Total Income.

SUMMARY

FY26 was a transition year. The Company posted back-to-back profitable quarters in H2. Annual losses narrowed to C621 Mn from C1215 Mn in FY25. EBITDA swung C742 Mn year-on-year to near break-even.

Pocket UPI, merchant acquiring, Zaakpay, NBFC-led lending and AI-led execution define the next phase. These initiatives are expected to scale monetisable payment flows, improve lending economics, deepen customer and merchant engagement and strengthen long-term profitability.

HUMAN RESOURCES

People remain central to MobiKwiks ability to innovate, scale and deliver customer-centric financial solutions. During FY26, the Company continued to strengthen its organisational capabilities through leadership development, talent acquisition and performance-driven people practices, while fostering an agile and collaborative workplace.

WORKFORCE SNAPSHOT (FY26)

Particulars	FY26	Remarks
Total Employee Strength (FTE) (as at March 31, 2026)	789
Average Age	32 years
Employees aged below 30 years	303
Average Tenure	2.2 years
Net Attrition	39%
Total Hiring during FY26	381
Leadership Hiring (D & Above)	15	4% of total hiring
Mid-level Hiring	238	62% of total hiring
Freshers	132	34% of total hiring
Diversity	26%

COMPANY INITIATIVES (FY26)

Initiative	FY26 Highlights
Performance & Leadership	Introduced a Value-Based Competency Framework and implemented a Balanced Scorecard for leadership goal setting, aligning individual performance with the Companys three-year strategic priorities while reinforcing accountability.
Leadership Strengthening	Strengthened leadership across key functions, including the appointment of a Chief Risk Officer and several strategic leadership hires to support the Companys next phase of growth.
Talent Development	Expanded the early-career talent pipeline through focused hiring of graduates and young professionals while continuing to strengthen mid-level capabilities.
Capability Building	Conducted leadership workshops to align senior management on strategic priorities and execution for the year ahead.
Employee Engagement	Organised KwikDay, the Companys annual sports event, promoting teamwork, employee wellbeing and a strong sense of belonging across the organisation.
Workplace Flexibility	Continued to support flexible working arrangements, enabling employees to maintain a healthy work-life balance while sustaining productivity and collaboration.

EMPLOYEE COST ANALYSIS ( ? MN, EXCEPT PERCENTAGES )

Particulars	FY24	FY25	FY26	% Change
Employee Benefit Expense	1,159.74	1,702.35	1,648.89	-3.1%
Less: ESOP	54.13	117.85	73.44	-37.7%
Employee Costs (excl. ESOP)	1,105.61	1,584.50	1,575.45	-0.6%
Total Income	8,903.15	11,924.90	11,541.95	-3.2%
Employee Costs (excl. ESOP) as a % of Total Income	12.4%	13.3%	13.6%	0.4%

INFORMATION TECHNOLOGY

Technology continues to serve as the foundation of MobiKwiks digital ecosystem, enabling the Company to deliver secure, scalable and customer-centric financial services. During FY26, the Company continued to strengthen its technology infrastructure, expand artificial intelligence (AI) capabilities and integrate AI across engineering, operations, customer engagement and lending workflows to improve operational efficiency, enhance customer experience and support longterm business scalability.

The Company strengthened its technology architecture during FY26 by migrating services to a new architecture and technology stack, improving service availability and enhancing customer experience across multiple platforms. It also developed an in-house AI technology stack, including proprietary voice-based solutions for collections, sales outreach and inbound contact centre operations, providing greater control over AI deployment and supporting future innovation.

TECHNOLOGY AS THE COMPANYS DIGITAL BACKBONE

The Company continued to strengthen its core technology infrastructure through cloud optimisation, platform modernisation and data engineering initiatives.

Cloud Operations DevOps Automation	Enhanced Network Operations Centre (NOC) capabilities, resulting in improved Mean Time to Detect (MTTD) and Mean Time to Resolve (MTTR). Initiated AI-driven DevOps automation by enhancing infrastructure-as-code services and implementing AI-based infrastructure alert classification to further reduce MTTR.
Platform Enhancement	Launched the Reseller Dashboard as a new capability within the Zaakpay Payment Gateway platform.
Data Infrastructure	Re-architected parts of the data pipeline to enable real-time data ingestion, supporting feature-store development for analytics, reducing reporting errors and strengthening fraud-rule APIs.

KEY TECHNOLOGY INTEGRATION

The Company accelerated the adoption of AI across software engineering workflows to improve development efficiency and shorten product delivery cycles.

Initiative	FY26 Highlights
Al-enabled Engineering	Integrated Claude Code and Cowork into business-as-usual engineering workflows, enhancing product requirement documentation, solution design and software development.
Al-native SDLC	Implemented AI-assisted requirements review and code review across the Software Development Life Cycle (SDLC). During FY26 AI generated over 80% of code, supported 60% of code reviews, and reduced the overall development cycle time by 30%.

AI AS A CATALYST

Artificial intelligence continued to drive measurable improvements across customer-facing operations, lending, collections and support functions during FY26.

Initiative	FY26 Highlights
Collections AI	Delivered 30% higher resolution rates than human agents across Decile 6-10 customer segments while operating at approximately 15% of the cost, improving collections efficiency and scalability.
Sales AI	Expanded customer acquisition by reaching previously untapped top-of-funnel segments, delivering 6.8% higher loan originations in initial experiments and reducing hot-lead drop-off by 6% through Al-powered sales calling.
Al-driven Card Intelligence	Enhanced proprietary card data parsing models using a hybrid machine learning and large language model (LLM) approach, with parsing and classification accuracy expected to reach 95%.
KwikHelp	Launched the AI-powered KwikHelp support platform, improving customer satisfaction from 37.15% in November 2025 to 67.2% (3.36 out of 5 stars) by March 2026. The platform introduced multilingual self-service capabilities in Hindi and Hinglish, reduced average daily call volumes from 5,675 to 4,115, and maintained stable ticket volumes despite removing previous ticket creation restrictions.
Next Phase of AI	Continued enhancing KwikHelp to enable AI not only to respond to customer queries but also to execute actions on customers behalf, further improving service efficiency and customer experience.

INTERNAL CONTROL SYSTEMS

MobiKwik maintains a comprehensive internal control and risk management framework designed to support sustainable growth, operational resilience and regulatory compliance. The framework enables the Company to identify, assess, monitor and mitigate risks arising from its operations while safeguarding stakeholder interests and maintaining the integrity of its business processes.

Given the dynamic nature of the digital payments and financial services industry, the Company continuously reviews and strengthens its risk management practices to address evolving business, operational, technological, regulatory and cybersecurity risks. The internal control environment is supported by established policies, procedures and governance mechanisms that promote

accountability, transparency and effective decision-making across the organisation.

The Companys risk governance structure is overseen by the Board of Directors and its various committees, which provide strategic direction and oversight across key areas of governance, risk management, compliance and stakeholder engagement.

Given the Companys digital-first operating model, internal controls also cover technology governance, cybersecurity, data privacy, transaction monitoring, merchant settlement processes, fraud prevention, access controls and compliance with applicable regulatory requirements across payments and financial services.

RISK MANAGEMENT

MobiKwik operates in a dynamic digital financial services environment characterised by evolving customer expectations, technological advancements and regulatory developments. The Company has established a comprehensive risk management framework to identify, assess, monitor and mitigate risks that may impact its operations, financial performance, reputation and long-term sustainability. Risk oversight is provided by the Board of Directors and its Committees, supported by established governance mechanisms, internal controls and compliance processes.

The Company continuously reviews and strengthens its risk management practices to address emerging risks and support sustainable growth across its payments, credit and financial services businesses.

Risk Category	Risk Description	Mitigation Measures
Credit Risk	The Companys lending and credit facilitation activities are exposed to risks arising from borrower defaults, deterioration in portfolio quality and adverse economic conditions.	• Advanced underwriting models and scorecards • Analytics-driven credit assessment and risk-based pricing • Continuous portfolio monitoring and early-warning systems • AI-enabled collections and recovery mechanisms • Diversified lending partner ecosystem • Regular review of portfolio quality and borrower behaviour
NBFC Transition and Lending Governance Risk	Expansion into NBFC-led lending may increase regulatory, operational, capital allocation, underwriting and portfolio-monitoring responsibilities as the Company transitions from a primarily partner-led model to a broader lending platform.	• Responsible lending practices • Regulatory compliance and governance oversight • Disciplined underwriting and credit appraisal • Portfolio monitoring and periodic review • Collections governance and recovery discipline • Strong lender and financial-institution partnerships • Phased scaling of NBFC-led products
Fraud Risk	The digital nature of payments and lending transactions exposes the Company to risks relating to identity theft, account misuse, payment fraud and other fraudulent activities.	• AI-driven fraud detection and monitoring systems • Transaction surveillance and anomaly detection • Multi-factor authentication and risk-based controls • Continuous enhancement of fraud prevention frameworks • Customer awareness and fraud prevention initiatives • Periodic review of fraud management protocols
Cybersecurity and Data Privacy Risk	The Company processes significant volumes of customer and financial data and remains exposed to cybersecurity threats, data breaches and unauthorised access risks.	• Multi-layered cybersecurity architecture • Data encryption and access-control mechanisms • Continuous network and application monitoring • Vulnerability assessments and security audits • Employee awareness and cyber-risk training programmes • Incident response and recovery frameworks
Regulatory and Compliance Risk	The Company operates within a highly regulated environment governed by payment system regulations, digital lending guidelines, data protection requirements and other applicable laws. Regulatory changes may impact business operations and compliance obligations.	• Dedicated compliance and legal functions • Continuous monitoring of regulatory developments • Periodic review and enhancement of internal policies and controls • Engagement with regulators and industry bodies • Governance oversight through Board-level committees • Compliance training and awareness programmes
Liquidity and Working Capital Risk	The Companys payments business requires effective management of settlement obligations, working capital requirements and liquidity across payment cycles. Delays in settlement flows or fluctuations in transaction volumes may affect liquidity management and operational efficiency.	• Robust treasury and cash management practices • Continuous monitoring of liquidity and settlement positions • Maintenance of adequate liquidity buffers • Diversified banking and settlement relationships • Periodic liquidity assessments and forecasting • Oversight by management and the Treasury Committee
Technology and Operational Risk	TheCompanys operations depend on the reliability, security and resilience of its technology infrastructure. System vulnerabilities, process failures, transaction disruptions or operational lapses may impact business continuity, customer experience and financial performance.	• Continuous enhancement of technology controls and monitoring frameworks • Strengthening of merchant risk management and transaction surveillance capabilities • Business continuity and disaster recovery mechanisms • Periodic system audits, testing and infrastructure upgrades • Dedicated risk management oversight and incident response protocols • Capacity planning and operational resilience initiatives
AI and Model Governance Risk	Increasing use of artificial intelligence, automation and data-driven models across underwriting, collections, fraud detection, customer support and operational workflows may create risks relating to model accuracy, bias, explainability, data quality and governance.	• Model monitoring and periodic validation • Human oversight for AI-enabled processes • Data governance and quality checks • Access controls and user-authorisation protocols • Audit trails for model-driven actions • Periodic review of AI-enabled workflows • Responsible and compliant deployment of automation tools
Third-Party and Partner Risk	The Company relies on banks, NBFCs, technology providers and other strategic partners to support business operations and service delivery. Any disruption involving key partners may affect business continuity and service availability.	• Structured due diligence and onboarding processes • Diversified partner network and strategic relationships • Defined service-level agreements and performance monitoring • Periodic partner reviews and risk assessments • Contingency planning and alternate partner arrangements • Ongoing monitoring of partner compliance and operational performance
Merchant Acquiring and Settlement Risk	Expansion of online and offline merchant acquiring may expose the Company to risks relating to merchant onboarding, transaction disputes, chargebacks, settlement delays, device operations, fraud attempts and service reliability.	• Merchant due diligence and onboarding checks • Transaction monitoring and fraud detection systems • Settlement controls and reconciliation processes • Chargeback and dispute-management mechanisms • Device operations and service reliability monitoring • Technology uptime monitoring • Defined escalation and resolution mechanisms
Competition Risk	The Company operates in highly competitive segments characterised by the presence of fintech companies, banks, payment platforms and technology-led financial service providers. Increased competition may impact market share, pricing and customer acquisition costs.	• Continuous product innovation and enhancement • Expansion of differentiated offerings such as Pocket UPI, merchant solutions and digital credit products • Strengthening of merchant and consumer ecosystems • Investments in customer experience and engagement • Focus on operational efficiency and monetisation capabilities • Strategic investments in technology and analytics
Macroeconomic Risk	Economic slowdowns, inflationary pressures, interest rate movements and changes in consumer spending patterns may influence transaction volumes, credit demand and repayment behaviour.	• Diversified business model across payments and financial services • Focus on portfolio quality and risk-adjusted growth • Continuous monitoring of economic indicators and market trends • Dynamic credit and risk management practices • Flexible business strategies aligned with changing market conditions • Prudent capital and liquidity management
Reputation Risk	Customer trust and confidence are critical to the Companys payments and financial services ecosystem. Operational disruptions, cybersecurity incidents, fraud events or regulatory non-compliance may adversely affect stakeholder confidence and the Companys reputation.	• Consistent adherence to ethical business practices and regulatory standards • Customer-centric grievance redressal mechanisms • Transparent stakeholder communication and disclosure practices • Continuous monitoring of service quality and customer feedback • Proactive stakeholder engagement and communication practices • Ongoing focus on customer trust, security and service excellence

CAUTIONARY STATEMENT

STATEMENTS IN THIS REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS DESCRIBING THE COMPANYS OBJECTIVES, PROJECTIONS, ESTIMATES, EXPECTATIONS, OR PREDICTIONS MAY CONSTITUTE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF APPLICABLE LAWS AND REGULATIONS. THESE STATEMENTS ARE BASED ON CERTAIN ASSUMPTIONS AND EXPECTATIONS OF FUTURE EVENTS. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED, AS THE COMPANYS OPERATIONS ARE INFLUENCED BY VARIOUS INTERNAL AND EXTERNAL FACTORS BEYOND ITS CONTROL. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS BASED ON SUBSEQUENT DEVELOPMENTS, INFORMATION, OR EVENTS. READERS ARE ADVISED TO EXERCISE THEIR OWN JUDGMENT IN EVALUATING THE RISKS ASSOCIATED WITH THE COMPANY, NOTING THAT THE FACTORS DISCUSSED HEREIN ARE NOT EXHAUSTIVE.