Thank you, Ananya. Good evening, everyone.

On behalf of Dolat Capital, I would like to thank One MobiKwik Systems for giving us the opportunity to host this earnings call. I welcome the senior management of One MobiKwik represented by Ms.

Upasana Rupkrishan Taku, Executive Director and CFO of the company, Mr. Soham Roy, who is Associate Director, Corporate Development.

I would like now management to take us through Q1 FY '27 results and request management to take it over from here. Over to you guys.

Hello, and good afternoon to all of you who have joined today for the MobiKwik earnings call. My name is Upasana Taku.

I'm one of the co-founders of the company. With regard to our Q1 financial year '27, I just wanted to make some brief remarks.

Q1 FY '27 has been our most successful and profitable quarter yet. It has also been a tightrope walk where we have balanced reaping profits today while at the same time calibrating the investments that we make for our tomorrow so that we'll be able to deliver better value to our shareholders.

In terms of the key metrics, Q1 PAT stood at ₹76 million. We are now profitable for three straight quarters.

The INR swing that we have delivered from Q1 last year to Q1 this year is ₹495 million. EBITDA also delivered at ₹158 million with an improvement of ₹470 million year-over-year.

In terms of the margin expansion story, payments gross profit landed at ₹777 million, up 31% year-over-year, whereas financial services gross profit grew 5.6x year-over-year and landed at ₹433 million, demonstrating robust credit quality. As a result of both payments gross profit and financial services gross profit growing nicely and the contribution profit of the company therefore rose 66% year-over-year.

In terms of the credit quality improvement, we saw 25% improvement and 60% of the loans this time went to repeat customers. In terms of the payments business, the platform GMV of the company reached an all-time high of ₹587 billion.

This is 50% up year-over-year. This is also the 14th straight quarter of growth of payments GMV that the company has delivered.

In terms of UPI, the company's UPI transactions grew 5x faster than the overall industry, making MobiKwik the second-fastest-growing TPAP, third-party UPI app, in the country. In a nutshell, this has been a strong quarter.

In terms of the cost, we have been able to do a great job at compressing costs at scale. Direct costs have been brought down 21% year-over-year.

Both payments side, the direct cost was down 15%; lending side, the direct cost was down 40%. Net-net, it has been a great quarter.

This is not a one-off quarter. We do believe that this is sustainable performance.

We are targeting full-year PAT profitability for this financial year, and Q1 is, of course, the baseline. We expect that GMV and revenue will both grow in both payment and financial services business and will compound, while at the same time, we aim to keep fixed costs anchored, and therefore, each rupee of incremental contribution should essentially flow to EBITDA and PAT.

We are focused on deepening our payments leadership in the market, expanding our digital financial services footprint, and creating sustainable long-term value for all of our customers, merchants, as well as our shareholders. Thank you.

Hello. Good afternoon, ma'am.

Thank you for the opportunity first. My first question is over the last 7 to 8 quarters, the company has seen relatively muted revenue growth.

What are the key growth drivers that management is expecting which will be helping in accelerating revenue growth going forward, ma'am?

Can you repeat your question? The voice was not very clear to us.

Now I am audible?

Yes, this is better.

Yes. Just my question was around from last 7 to 8 quarters, the company has seen quarterly-on-quarterly basis revenue growth is very muted.

What are the key growth drivers that management is expecting revenue growth will be good going forward?

Right. Now we got it.

Thank you very much for the question. Great question.

See, I think that in the last financial year, almost till half of the year and more, we were trying to restabilize some of our businesses. I will look at the last few quarters and the current quarter as a baseline to answer your question.

Let's take one business at a time. On the lending side, the revenue this quarter has also been great.

Even though there was a dip in disbursements, the revenue is still holding strong. We are expecting to grow the disbursements in lending from the current baseline of about ₹700 crore to ₹1,000 crore every quarter in the coming quarters.

We are planning to do that on the back of two, three things. First is that we have added new lending partners this quarter in Q1, and we're adding more in Q2.

On the back of new lending partnerships as well as products, we do expect that we will be able to scale the business. Secondly, we have also employed two, three growth initiatives on the lending business.

The first one being very simply, we have a very large, engaged user base on MobiKwik, thanks to our diversified payments business. We are trying to generate more and more pre-approved and pre-qualified offers for these customers.

On the back of that, we are confident that we can increase our pace of disbursement. In addition, currently, in our lending funnel, from the start of where the customer gets interested and sees a loan offer to the completion of the journey, there are several points at which there is drop-off.

To address that, we have built our own AI engine, which will automatically detect the steps at which a user is getting dropped off and, according to the place in the funnel the drop-off is happening, will automatically address that and therefore try to get the user back into the funnel and get the user converted. On the back of these two growth initiatives, as well as on the back of new lending partners, as well as new lending products that we will be launching, we feel very comfortable about generating at least a ₹1,000 crore disbursement in every quarter going forward.

That should give us definitely a strong revenue growth. To add to that, we have also shown in our earnings presentation this time that from our past book, where the loans are either completed or on the verge of completion, there also we are performing much better than what we had thought, and therefore, we are also getting recoveries in the form of revenue on our old books.

Put together, this is how we expect to grow the lending revenue as well as the margin that will be flowing from there to the bottom line of the company. Now coming to the payments side.

See, payments is a tricky business. As you all know, the largest growth that we are seeing as well as everybody in the market continues to see is on the UPI side.

There you know that revenue is problematic over there. What has happened is that we have seen significant growth on UPI side, on merchant side, and the categories where the take rate is either zero or is very low, a few basis points.

While at the same time, the high revenue-generating categories are typically categories which are card-linked, either credit or debit card. In some of those categories, actually, we've had to pause in the last quarter as well as this quarter due to which there is a revenue dip also, and there is a direct cost in payments dip also, which is directly visible in the slide that we have given.

We are working on relaunching some of these payment categories, and so we expect to recover from the payments revenue dip also in Q2. Separately, we have already highlighted last quarter that we are trying to scale up the merchant business in a big way, both our online as well as offline merchant acquiring business.

These are revenue-generating businesses, and therefore, we will see the revenue flow through. One interesting point I wanted to tell you is that even though it has been hard to see revenue growth in payments, but we have been able to translate the 50% year-over-year GMV growth into 31% year-over-year gross profit growth in the payments business.

Last year, on a similar revenue, we made ₹59 crore in gross profit, and this quarter, on a similar revenue of ₹208 crore, we have generated ₹77 crore in gross profit. We are trying our level best from all sides to either increase the top line or the gross profit from the business so that the overall profitability of the company keeps going up.

Ma'am. Fair enough.

The second question was around our existing users only. Are we observing something regarding that our existing users are only using our other products?

Any pattern of cross-selling opportunities meaningfully observed there?

Hi, Divyansh. Soham here.

One of the points which Upasana already mentioned is we are looking to tap into that existing customer base. Our largest cross-sell product right now is lending.

We're working on tapping into that. We have a good set of customers or a ready base which we have mentioned in the investor presentation also, roughly 96 million.

We are looking to tap into them and generate roughly about 100 crores of or rather ₹150 to ₹250 crore of additional disbursement every quarter. That is the biggest line.

Obviously, as we continue to build other lending products along with some of the wealth products that we are also working on, this further adds to the cross-sell opportunities.

In addition, all of the users that we acquire from UPI, because UPI is a low-cost acquisition funnel for us, we also definitely cross-sell them into the revenue-generating payment categories.

Okay. Understood.

Fair enough.

Hey, hi. Am I audible?

Hello?

Yes, Ankur. You are audible.

Perfect. Can you give me UPI GMV and non-UPI GMV first in payments?

This quarter, we have provided the UPI GMV. For the quarter, it was 269 billion in terms of UPI GMV.

The remaining roughly 300-odd billion is non-UPI GMV. Then

non-UPI has been pretty much flatish Q-on-Q, correct? Hardly any growth, like 2%, 3%.

Last quarter, it was 300 billion. This quarter, it is 317 billion.

5%. Is that the take rate on the overall payment business has come down a bit?

One point which Upasana previously mentioned was the credit and debit card-linked payment options where we made more money, those segments we have seen a degrowth because of regulatory pressures. Yes,

you can give us more color on those issues? What are the regulatory restrictions?

For example, you would have heard one of our competitors had also mentioned in their prospectus that they had to lose a good chunk of revenue for a category like rent or education, etc. These are categories that are quite popular on all the payment apps, and there has been changes in the perception of these products, and therefore, the guardrails are being changed across all platforms, not just MobiKwik.

To that extent, we just mentioned that we have also paused one of our products in Q4 as well as in Q1, and we intend to relaunch it in Q2.

Going forward, is 35 bps take rate a new norm? Should we work with?

More or less. As UPI grows further, you will see a bit more going down in terms of gross take rates.

We continue to guide in the roughly 12 to 14 bps in terms of my net payments take rate. That is what we are focused on.

When you're saying net payment, this is gross profit level, right?

Yes, gross profit level. Then

the question is let's say if total payment GMV is increasing at 30%, 40%, the gross profit will keep growing at that rate. We should not be focused much on payments revenue as such.

Is that a fair way to look at it?

Not at that rate.

I would agree with that because, see, ultimately, what matters is that how much of the profit you are going to retain. To that extent, that is what we've been saying every quarter, that the gross take rate or gross revenue will be under pressure because, one, UPI will keep bringing it down, and, b, all the flux in other categories that we keep seeing across the ecosystem.

Therefore, we have been guiding at the net payments margin level, which is revenue minus direct cost in payment. What is the net retention, which we call gross profit for payments?

That is what we've been guiding. If you see every quarter, we keep giving a number showing it quarter-by-quarter.

Far, it has been in that 13 to 15 basis point range. Because we have also decided to scale up our merchant business significantly, and this time, we have also given the breakup of merchant GMV versus consumer GMV.

Typically, merchant GMV also has slightly lower take rate than consumer, which is why we are guiding that on a long-range basis, 12 to 14 bps is where we will be on the overall payment volume.

Upasana, can you give us more color on merchant rollout? How should we look at numbers next two, three, four quarters, maybe a two years perspective?

One number that we have given is in terms of the merchant business, we have done about 1. 1.25 million

rupees or 125 billion.

125 billion rupees in Q1 in merchant GMV. This number was 107 billion last quarter, so that's a 17% QoQ growth in the merchant GMV.

Now it's only last quarter that we started speaking about how we are trying to build the merchant payments vertical, and this includes both our online payment acquiring business called Zaakpay, which is housed in our wholly owned subsidiary, as well as the offline merchant acquiring business, which is housed directly in MobiKwik, where we deploy QR, soundbox, and EDC machines. Now this scale-up has just literally started at the end of last quarter and beginning of this quarter, Q1.

What we had said last time is that in two years, we expect to do a 10x ramp-up here. We've just started.

The early signs seem good, 17% QoQ growth. Therefore, apart from this, whether it is number of merchants, number of devices, merchant revenue, we don't feel comfortable about sharing any of those numbers right now.

It is too early. Needless to say, as we ramp up, we will be showcasing more numbers about this business.

What I can tell you is since we were talking right before this also about payments is that we feel comfortable that the mature consumer payment businesses, we will expect 5% to 6% quarterly growth in terms of revenue. That is our expectation for ourselves.

In the emerging and fast-growing merchant businesses, we expect that we'll be able to grow about 25% in terms of revenue quarter-on-quarter.

That's good. This 127 billion sits in 318 billion of non-UPI, is that correct?

I don't think that's the right way to think about it. I think one way to think about it is that we are giving you our overall GMV, and the merchant GMV, once you remove it, then the consumer GMV is what is the constituent of the UPI, PPI, and recharge and bill payments, but there is overlap between all of them because, obviously, you can do a bill payment using a wallet or you can do a bill payment using UPI.

Fair enough. When you're saying 10x, let's say last quarter FY '26 was 100-odd billion of merchant, which makes ARR of 400.

The internal targets are to take it to what, 4,000 over next two years?

In revenue. I said in revenue, not in GMV.

Understood. Sorry, can you give me the revenue again for this quarter for merchant, if you can?

It's too early. That's what I said that apart from the GMV for merchant, we are not revealing any other numbers yet.

I think as we make progress, we will start revealing more metrics.

Directionally, this will have lower GPM margins? That's what you guys are guiding for?

You have the competitor data to see, right, where the businesses are far more merchant-focused. It's a well-known fact in the industry that the net take rate is less than 10 bps.

How much money have you spent on the merchant equipment, if you can share that? I think you mentioned you guys will be spending more on that side from a capex perspective.

See, for capex, we've already given the disclosure in our financials also. We had taken IPO proceeds just for capex, and we still have a good amount of that money available for further purchase of equipment.

₹25 crore, ₹30 crore we have available to buy more devices.

That's what you guys will spend this year, all of this, or more than that?

First we have to utilize all of that is what I was trying to say. The utilization is also getting updated every quarter in the financials itself.

We don't expect that we will need more than that for now for this year.

Got it. The last thing for now is if I go to page 23, there is some reference to disbursement from new initiatives.

If you can give us more color on that, is this just new clients or is this new product?

If you're looking at slide 23, you just look at slide 21 and 22, where we are showcasing two things, which is the first initiative is basically we have a very large non-lending user base on our platform, which we have identified as 96 million users. Out of those, we are taking a couple of tracks based on which we expect to segment these users and provide them the right pre-approved offers for loans.

From this track, we expect that we will be able to generate about ₹150 to ₹250 crore of incremental disbursements. This is what Soham had explained some few minutes ago also.

This is one growth initiative. The second growth initiative is on slide 22, where we are saying that we are trying to leverage an AI engine that we have built so that all the customers that we are losing in different parts of the loan journey on our app.

Top of the funnel is anyone who has seen the loan offer and filled in the first screen to show their loan intent, and then there are different steps till the end, till the disbursement. We have highlighted that there are a few steps where we are seeing 50% drop-off, 10% to 20% drop-off.

By building a engine which will help those users, whether it is by talking to them in their language, whether it is by figuring out what triggered the drop-off and assisting them in their journey, we do believe that there is enough juice here that we are leaving right now, and we should be able to generate about ₹100 crore per quarter from this engine also that we have recently built. In slide 23, what we are saying is that if you assume that Q1 is the baseline for the upcoming Q2, Q3, Q4 quarters, then we do believe that we have enough opportunities in terms of these two initiatives based on which we should be able to generate another ₹300 crore of disbursements.

Therefore, our expectation from ourselves is that we should be able to do ₹1,000 crore disbursement every quarter in the upcoming quarters.

How much of that will be pure origination and how much is on books via FLDG?

As of this quarter, 32% is pure distribution, and 68% is FLDG. As we go forward, we are looking more of a 40-60 kind of a mix, potentially by the end of this year.

Now this is happening through your NBFCs, is that correct, the FLDGs?

FLDGs are happening through our NBFC partners. We have a set of roughly 10 to 15 partners.

We have mentioned some of them previously also. Like this quarter, we have nine large or major partners.

Through them, we are doing this FLDG business.

When do you expect your own NBFCs to start building the book?

We have also given an update on slide 7 in our earnings presentation that when we received the in-principle approval from RBI in April, one of the conditions of that was that we have to take the digital lending business, which we have been discussing last few minutes, from the parent company MobiKwik to a wholly owned subsidiary. The shareholder approval for that we received in July, on July 2.

Since then, that project is going on. As we have given in the slide 7, we are in progress of transitioning this business, which is a large, cumbersome process in terms of recontracting with all the NBFCs, technology migration from one company to the other, people migration and all of that.

We intend to close that in August. It is after completing that only that we will be able to go back to the regulator and ask for the final license from the in-principle to the final certificate of registration.

In terms of launching the own NBFC and disbursing loans from there, I do believe that we are still some time away from that, and we should have a better update to give you in the next results.

Perfect. Then last call, Q4, there was some guidance of let's say ₹75 crore EBITDA for FY '27, which includes other income as well.

Now at least for Q1, the operating EBITDA ex other income is roughly 80 million-odd. If you can give us more color on that, should we still shoot for 75 750 million EBITDA this year, including other income?

Or would you like to tone it down a bit?

I think that we feel very comfortable and confident in the current financial numbers, and this is the baseline. Not only EBITDA, but even in terms of PAT, if you see, this has been a good quarter, and we've delivered ₹7.6 crore in PAT.

Even if you take that as a baseline, we believe that we should easily able to achieve ₹40 crore of PAT for the full financial year, assuming at the rate of 10, 10, and 12.5. Yeah, 75 EBITDA and 40 PAT is the kind of numbers that we are fairly confident of achieving.

Perfect. Last question, can you give me the cash balance as of 30th June, please?

One moment. The net cash that the company has is ₹437 crore.

Perfect. Okay.

Thanks. I'll fall back in queue.

Hi. Thank you for the opportunity.

Just wanted to understand. This quarter, our PPI wallet transactions are up by 68%, but GMV was up only by 24%.

If you can explain the reason behind it?

One second. Hi.

Thanks for the question.

I think there's two parts to it. One, people are using wallet more and more for lower-ticket transactions.

More people are using Pocket UPI, which is effectively using wallet and paying on a UPI QR code. That is a reason because of which the number of transactions is increasing.

GMV is not at the same rate because of lower ticket sizes. Secondly, which we also mentioned, the card-linked payment transactions have reduced a bit or there has been a pause in terms of card-linked payment

Those were higher ticket sizes.

Those were higher ticket size, yes.

Additionally, one point I want to make, which is apparent, right? While the transaction of wallet has grown 68% YoY, but the GMV has grown 24%, which was what you were asking.

Soham is explaining that a good chunk of this also happens to be wallet on UPI, where people are using the wallet balance as a bank balance and paying on the UPI rails. You should also know that we are not making revenue also on this.

For example, if you use your wallet to pay on a wallet merchant, then I make money on that. If you're using your wallet to pay on a UPI merchant, then just like UPI, there is no MDR, UPI.

Similarly, PPI and UPI also currently we are not earning any MDR, although RBI had mandated it, but NPCI has still not rolled it out despite 2.5 years. There again, we are losing revenue.

Right. Okay.

Is it possible to share what was the Zaakpay GMV or revenue this quarter?

One second.

Hi, sorry. We provide this in our key performance indicators.

My payment gateway GMV or Zaakpay GMV for the quarter was 25 billion, 25.6 billion.

Okay. The revenue would be for the payment gateway?

Revenue, we do not disclose separately for that at this point. Point taken.

No problem. In the lending business, the gross margin improvement was partly because of the write-back of the guarantee cost of the previous year loan, I think.

Can you tell us how much that would be?

In the unit economics, we have actually given what percentage was from my existing book and what percentage was from this write-back. In my

Yeah, 1.8% or something, yeah.

1.87. You can take my entire gross revenue in lending, and roughly 18% of that is from my past book recoveries, which contributes to roughly ₹16-odd crore, if I'm not wrong.

Okay. This becomes a cycle.

This write-backs will keep coming every quarter, right?

They'll keep coming every quarter, but they may not be of the same value because, obviously, the write-backs that we are getting now, we could already see in the credit cohorts that the losses are going to be much lower, but the lender has already kept a good margin with them, which is what we're getting back. Over a period of time, as our cohorts kept improving, we also reduced the amount of upfront collateral sitting with them.

Therefore, write-backs will keep coming, maybe not to the same tune.

Okay. You're saying that earlier say we used to provide say 5% upfront, that provision has come down now?

See, 5% is the max we can give as per RBI guidelines. That doesn't mean we give 5% to every lender.

Out of the nine lenders, maybe I have given 4.75% somewhere, 4.5% somewhere, and 5% somewhere.

Okay. You tweak your provision depending on the behavior or credit cost that is happening on your loan book?

Correct, correct.

Okay.

Which is why if you see, just to address this from a long-range perspective, if you see Q3, our net financial services margin was 4.1%, and last quarter and this quarter, it's now 5.4% and 5.8%

Yeah. Yeah.

and

which is great for us. On a long-range basis, we believe that this will continue to be between 4.5% to 5%.

Anything beyond 5%, we are happy only. I'm just saying that we can't always assume it will be 5.9%.

It could be 4.5% to 5.5% is the right range.

It will keep fluctuating, right. In the merchant business, you said that we want to anchor our fixed cost and this, but as we scale up our merchant business, can you guide us how much this fixed costs can increase maybe in next two years?

See, in the fixed costing, you can see clearly employee benefit expense is going up. It is gone up last quarter, ₹46 crore to ₹53 crore this quarter.

Most of it is for the new merchant businesses itself, which are, of course, manpower-intensive in the off-roll side, in the offline business side. We do believe that while this may go up slightly even more, but we will keep that in measure to as we are breaking even in the different segments of the merchant business.

We had said that we don't expect for the full year merchant business burn will be more than ₹50 crore, ₹60 crore. We are running on that timetable only on a quarterly basis.

So 15 * 4 is 60. While our PAT reported is ₹7.6 crore, of course, we have burned money to the tune of ₹15 crore, ₹16 crore in building the merchant business.

We will continue to do it in that manner only. I don't expect this to go up by 50% as an example.

Can the merchant-related manpower cost go up by 5% to 15% on a year-to-year basis? Yes, of course, it will be.

It will be directly linked to the break-even and the margin that we will generate from that business.

Right. At what scale do you think merchant business or by what time do you think merchant business should break even, this burn that we are doing ₹50 crore, ₹60 crore annually?

Do you think we should break even next two years?

We expect FY '28.

Right. My last question, ma'am.

The lending disbursement is degrown since last two quarters. What is the reason do you think is for this degrowth in the disbursement amount this quarter?

I think two things. One is that we have given a lot of detail on this in slide 23 in our earnings presentation.

Just to summarize, firstly, if you will see in Q2 and Q3, you will see that while we had more partners, the key partners that we had were six to seven, and the lending concentration in the top three lenders was about 91%, which we saw it as a risk, and we wanted to consciously bring it down. Last quarter, we brought that to 87%, and this quarter to 71%, which we believe is important from a mid- to long-range perspective that we should diversify our loans across several partners.

To that extent, we have been adding partners. In Q1 also, we have added two new partners, which will further scale up in Q2.

I'm happy to tell you that we are already on the ₹1,000 crore run rate in Q2, whichever date we are standing on today. The second thing is that we also mentioned because of this NBFC license condition, we had to move our digital lending business from the parent TopCo to a wholly owned subsidiary.

It is a fairly cumbersome project to move all your pipes, novate all your agreements, and redo everything again with all the lenders, with all the bureaus in a new company from a new tech stack. Specifically in Q1, we have had quite a lot of focus on that technology migration between our parent system, our child company, and all the different lending partners.

This project has been going on for the last couple of months, and we expect to close it in August, which is why we are confident that whatever we have lost in Q1, we will make good for it in Q2 itself. While I'm trying to tell you that in Q2 we will do 1,000 crore easily because we are already on the run rate, plus we have built new capabilities also which give us the confidence, we do hope that we should be able to do even better in Q3, Q4.

At least we should be able to do 1,000. I think adding new partners as well as adding new capabilities was a key component.

New partner addition will continue, and new products also you will see coming up because we have given some slides on user profiling also, and we do believe that with the kind of diverse users we have, we do need a spread of products at different ticket sizes, different pricing models, etc. That also we are trying to expand this year.

This will be a big year. I think we've made a lot of investments, and I think we expect that they will reap benefit in the latter half of the year.

Definitely in Q2, there should be much stronger performance from the lending side.

Great. Thank you.

Thank you, ma'am, and good luck.

Yeah. Hi.

Thank you for taking my question. Firstly, if I look at our payments GMV, and if I exclude the UPI, which is broadly non-monetizable at the moment, the GMV growth has come down to say about 20-odd percent versus earlier, which was slightly higher at about 30s range.

From a medium- to long-term perspective, if we assume that ex-UPI, what would be the rough, let's say, range that MobiKwik can grow the payments business at, excluding UPI?

I'm sorry if you could repeat the last part of your question, excluding UPI?

Excluding UPI, what would be the broad long-term growth aspiration for the payments business?

I mentioned this in terms of revenue already that in terms of revenue, we have two buckets. One is we have our mature consumer payments business.

In the mature consumer payments business, which is where the recharge and bill payment falls, the wallet falls, and the CC-linked categories fall, all of these businesses, we expect about 5% to 6% quarterly revenue growth, is what I had mentioned earlier. In the new and emerging businesses, which is our online payment aggregator merchant business and our offline payment aggregator merchant business, combined together, we call them the merchant business, these businesses are still small for us.

Therefore, we expect to grow them much rapidly. There we are expecting about 25% quarter-on-quarter revenue growth.

That is sort of how we are looking at it. This time, we have given our merchant GMV and consumer GMV.

You can assume that the merchant business will grow at the revenue will come out at the rate of 25% versus the consumer side will grow at the rate of 5%.

Right, right. At scale, you do believe that merchant business will generate profitability, right?

Even though it might not be as high as the consumer business that we are doing currently, but it would still be a decent profitable business. No,

no, absolutely. In fact, that is one of the reasons why we are trying to build the merchant business and diversifying our overall payments business away from consumer only because the first advantage in the merchant business is that it is possible to make money.

Whether you look at offline merchant or you look at online merchant, in both cases, it is possible to earn MDR, unlike UPI on consumer side, where there is no way to make money. Secondly,

while

we are the second-fastest growing in UPI on the consumer side and our transactions have also gone 5x on UPI, but still there are so many more competitors on the UPI side. We are still ranked 13th in the overall UPI stack rankings published on the NPCI website, whereas on the merchant side, there aren't 13 players.

You can count the number of players on one hand. The competition is much lesser.

It is easier to acquire and retain merchants. In terms of monetization also, if you see, there are multiple opportunities.

On the UPI transactions, one can make money on CC on UPI MDR. On the devices like soundbox and EDC, one can make money on the device rental itself, followed by all the card transactions that happen, where you make the card MDR.

Along these lines, if you are able to lock in the merchants on the device rental and scale of payments business with them, then it's possible to make money out of lending also from those merchants. We do believe that merchant acquiring has a strong value proposition.

The TAM itself is huge. Offline merchant TAM is around $1 trillion, and online payment aggregator is another just less shy of a billion.

It's a big opportunity, I think, and there are very few players taking a stab at it, and we feel well poised that we should be able to capture a good chunk of it.

Right. Any thoughts on if and when the UPI might become monetizable for you?

That only the government can decide. Your guess is as good as mine.

If an MDR or a subsidy flows through, then I'm sure we will capitalize on it as much as is possible.

I think, six, eight-odd months back, there was this expectation that at least on the PPI side, we'll start making some money.

We do want to, because as I mentioned, RBI had mandated that PPI on UPI should make money, just like RuPay credit card makes money on UPI rails. The documentation is there.

It is publicly available. RBI's guidance is there.

The instrumentation of that seems to keep getting pushed back or delayed on NPCI's end, and NPCI runs the UPI stack, as you are aware. We, along with all the other wallet players in the market, have given several written representations at all levels in the government that this MDR should flow through as soon as possible because we have all spent money for doing full KYC, and it's only full KYC users who are able to transact using their wallet on the UPI rails.

Of course, before the UPI rails, when these users were paying on the wallet rails, I was making money on it. It is a cannibalization for all of the wallet players.

We are all pushing for it, but so far, we have not received any green update on this. I'm as demoralized about it as I can tell you.

I guess this is one of the disadvantages of being a fintech company in a very regulated market like India.

Yes. Lastly, just the debt and cash number for quarter end?

On the debt side, as of financial year '26 end, which is 31st March, we have repaid all our long-term loans. The only loans that we have now are short-term working capital facilities, which are from two major private banks, the total value of which is ₹320 crore or ₹3,204 million, and this is used for payment settlement funding only.

Right. Cash would be around 437 million?

Yes. Yes, yes.

Okay. That's it.

Thank you.

Hi. Thank you so much, ma'am.

A lot of my questions have already been answered. Just one clarification.

I think did we say that we want to target ₹40 crore PAT this year-end, ma'am?

Yes, for the full year. For the full year.

For the full year, ma'am. Right now, we are at a very lower scale.

How will this ramp-up be? Will it be more H2 or quarter-on-quarter linear growth can we see for that?

We are at ₹7.6 crore, 7 * 4 itself is 28. We do believe that we will try to improve it, like we have improved it from last quarter.

We were at ₹4 crore, ₹4.5 crore, we have improved it by ₹3 crore. If we just improve it by ₹3 crore every quarter, then also we should be able to land at around 40.

Okay. Fair enough, ma'am.

Just bookkeeping question from my end, with profitability coming in, how much of a tax shield of prior losses would we have? Because I'm assuming that we would not have to pay taxes for some time, right?

Could you have any quantification on that, that would be really helpful?

We have substantial losses. I don't have the exact number, but it will be somewhere in the range of ₹900 crore, ₹1,000 crore.

Okay. This we can

carry Yeah. For anytime soon, we are not paying taxes.

Okay. Fair enough, ma'am.

That's it from my side. Thank you so much.

Thank you, Ananya. On behalf of MobiKwik's management, I thank everybody for joining us on the call and being part of our Q1 FY '27 results.

Wishing a very happy start of the year to everybody, and have a good day.

Thank you.