One MobiKwik Systems Ltd (NSE: MOBIKWIK) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
Upasana Rupkrishan Taku — Chief Financial Officer, Whole-Time Director (Promoter)
Komal Saran — Chief Financial Officer
Anand Kumar — VP Corporate Development and Investor Relations
Analysts:
Unidentified Participant
Rahul Jain — Analyst
Shubranshu — Analyst
Vishal Khandelwal — Analyst
Presentation:
Anand Kumar — VP Corporate Development and Investor Relations
Hi. Good evening everyone. Welcome to the Q1FY26 earnings conference call of One Mobiquik Systems Limited to discuss Mobiquik’s financial performance and address your queries. We have with us today Mr. Bipinpreet Singh, Co Founder, MD and CEO Ms. Pasna Taku Co Founder, Chairperson ED and CFO Ms. Komal Sharan, Head Finance, Corporate Development and IR Mr. Anand Kumar, myself VP Corporate Development and Investor Relations. I would like to hand over the call to Ms. Upasna for opening comments. Over to you Upasna.
Upasana Rupkrishan Taku — Chief Financial Officer, Whole-Time Director (Promoter)
Hello everyone. Good afternoon. It’s a rainy day here in Delhi. It’s our pleasure to host. This is a third quarter after getting listed. Very happy to inform that the business has grown nicely. Our main and core business payments continues to grow nice and strong on all metrics. GMV gross margin, all lifetime best numbers. And while it is a strong growth in terms of revenue year on year we also believe that more revenue streams will follow our lending business which was doing very well last financial year after Q2 we had a downturn in line with the sentiment in the market.
And as you know we’ve been reporting last two quarters that we are trying to recover that business. This quarter we have shown 30% growth in the dispersal there which is on top of 30% growth in disbursal that we also reported last quarter. So we are trying hard and we expect the recovery to be even stronger in the coming quarters. Overall we are trying to grow our payments business, wallet, upi. We are trying to recover our lending business. We have optimized on all costs. You can see the contribution margin has improved. EBITDA has also improved in contrast to the last quarter. And we are well poised on delivering a strong year in terms of growth and achieving breakeven EBITDA in the last two quarters of this financial year.
Questions and Answers:
Anand Kumar
Thank you Basma. We will take a minute for questions together. Please raise your hand and wait to be unmuted and then we will take the questions. Hi Rahul.
Rahul Jain
Yeah, I hope my line is okay.
Anand Kumar
Yes, yes we can. We can hear you clear.
Rahul Jain
Yeah, thanks for the opportunity. Firstly, you know the take rate question on the payments business. I believe the take rate has been coming off which could be function of UPI contribution in terms of total GMV going up. So it would be good if we could share that. Any insight on that part and if yes, what is the UPI as a percentage of total GMV in this quarter and last result?
Komal Saran
Sure. Hi Rahul, this is Komal. So like you rightly say the percentage of UPI contributions.
Unidentified Speaker
The recording has stopped.
Rahul Jain
Komal, in case you’re talking, I’m not able to listen to you.
Komal Saran
Rahul, can you hear us?
Rahul Jain
I. I could not listen to your response. You. You began but then I could drop off.
Komal Saran
I think there was some technical relation. My apologies for that. So like you were rightly saying Rahul, the contribution of UPI in our overall GMV has been going up every quarter. This quarter UPI as a percentage of my GMV is about 35%. The same number last year back was just shy of 30%. So this has been growing. In fact we have seen almost an 85% growth in UPI in our network over the last year. In fact we are the fastest growing UPI player in the country. And to that extent the take rate is getting impacted. But I think as a company what we focus on is the, you know, the net margin that we’re able to earn on every rupee that transacts through our network.
And there through a combination of reduction of both bank costs as well as incentives we have ensured that our processing margins are about 15 basis points which is actually industry leading. Our contribution margin percentage is also 28% or so which is our lifetime high. And our intent as a company would be to stay in that 22, 23, 25% range as far as margin is concerned. So that is sort of the immediate pit stop. Secondly, I think there are a few. Things like interchange and pocket UPI which is also very large and growing segment for us which are not yet baked in into our financials. And we do know that regulatory clearance and that should come anytime soon. So when that comes through that would be an additional upside lever both to take rates and overall revenues.
Rahul Jain
Would it be possible to understand the revenue potential from this basis the current gmv?
Komal Saran
So Rahul unable to give a, you know, a guidance on the call but I think suffice it to say that at the rate at which UPI and within that pocket UPI is growing it would be a significant number by the time it comes through. And with the, with the pace that.
Rahul Jain
We are growing and is it, will it be retrospective or. It will be from the day when it could get announced.
Upasana Rupkrishan Taku
Rahul. Hi, this is Upasana. So as you know it is not possible to do it retrospectively, right? Once the transactions are done, they’re done. So we expect that as and when the notification or circular will come which we are expecting should come soon, it will have a date, a launch date and then from that day onwards the revenue will start accruing.
Rahul Jain
Understood, that’s clear. Also another question on the lending business. What is the potential for the take rates to you know, go higher here? And I’m assuming part of the uptick is because of we’re not doing the zip product so. And what could be the DLG element at this point and the investment that has gone into the DLG part? Any color on those aspects would help you.
Komal Saran
Sure Rahul. So in terms of lending, I think if you see we’ve reported take rates of about eight and eight and a half percent. I think in general what we have seen is in the past gross take. Rate for this business can be as high as about 10%, 10.5% and we are currently in the FLDG sort of model where 5% DLG is given to us as a fintech partner. We do expect that that will continue. Again just given the fact that we have raised IPO proceeds for DLG and at the end of the day the unit economics or the cash that we earn from a loan does not change whether you’re on DLG or whether that risk profile is at adjusted into the nim. It is the same. Right? So therefore from that extent I think yes there is potential for the take rates to improve will obviously get offset by DLG kind of cost and net that we will earn on lending is a 40% margin. 40, 45% margin and that we’ve demonstrated in the past also we used to earn 45% plus margins as far as.
Rahul Jain
Lending is concerned and Komal additionally on the lending operational expenses if you could give some color we have seen sharp moderation possibly due to the cost related to the zip product. So is it safer to assume the current run rate is the recurring run rate or there is some more cost which Was there in Q1 but may not happen in Q2?
Komal Saran
No Rahul, so that is like you’re rightly saying it is a function of I think one, the portfolio seasoning and normalizing and therefore the upfront DLG related impact etc getting more evened out and secondly us driving a lot of efficiency, our collection efficiencies are improving our underwriting capabilities, our risk models and that has meant the direct related expenses have gone down by 6% quarter on quarter. Now if you see historically for us as a company this expense used to be in the 5.56 6.5% range. So you know our aspiration definitely is to drive towards that. But also bear in mind that is a function of accounting regulatory policies like FLDG and the Overall macro. But longer term that is where the business has to be.
Rahul Jain
Actually just to recharacterize my question, I was talking about what we call as lending operational expense which does not include the guarantee part of it. So any specific thoughts there?
Komal Saran
No, no. What actually comes Rahul in the lending operational expense is the guarantee part only.
Anand Kumar
So I think. See Rahul, you should look at lending related expense, right? Which you can track historical also. Right. What Koval was saying in the previous quarters on years if you see that numbers has been in the range of 3 to 4%. Right. So that includes everything. That includes my credit cost, underwriting cost, collection cost, etc. Etc. So if you even look at the overall number that have been in the range of three to three and a half 4%.
Rahul Jain
Right. But there is a specific item called financial guarantee expense. I thought that would be more related to DLG nature or you think it could be in both.
Upasana Rupkrishan Taku
So Rahul, two things we are reporting in all our earnings, collateral something called lending related expenses which is directly a mathematical addition of lending operational expenses plus financial guarantee expenses. Both of these expenses are on the face of the P and L. And we add these to show lending related expense which is the only direct cost in the lending business.
Rahul Jain
Okay. Okay. Probably I’ll take this offline. And lastly from my side if I may. If I see the the schedule which we have given on the utilization of the IPO proceed. I could see that there is a significant allocation towards the devices business which still remain kind of an untouched. So any plan here to scale this part? What is the right strategy? How we should see the revenue potential from the next 12 months in this business.
Komal Saran
Sure Rahul. So I think the sort of devices and the offline merchant business for us it is a small part of our business. But that business has also grown 7x8x over the last two years. And we do feel this is a very large market. There’s opportunity for many players to play across different stratas, regions, products. And we remain excited about this market. Which is why the IPO proceeds were earmarked towards devices. I think what we have seen is Q1 is in general a little bit sort of seasonally softer and slower. But we expect this trend in terms of both adding new merchants, devices etc. To increase as we go along the year. And we are confident, armed with the IPO proceeds to be able to accelerate this business.
Rahul Jain
Right, right. And lastly finance cost for us has not been coming off despite the still there’s an IPO part with proceed part which is unutilized so is there, is this likely to go down or there won’t be any change in that because we are getting the other income. But finance cost may remain as this.
Komal Saran
So look Rahul, finance cost is a function of our debt which actually is.
Komal Saran
Again more working capital or transient debt to take care of the Tplus1 sort of settlement cycles. I would expect that as GMV grows we will try to operationalize and synergize cost there. In terms of the absolute finance cost, it is a function of the overall rate environment much more than us actually trying to bring it down. And as we of course grow our business we could look for opportunities to reduce it. But I think for the immediate few quarters I would actually model it to be in the similar range.
Anand Kumar
Just to give you one data point on this. If you see our debt at the end of Q4FY25 it was around 46 crore and that has literally gone down to 32 crores now. So the finance cost which Komal was also talking about is more like working capital lines that we use for our payment business.
Rahul Jain
Fair enough. That’s all there. Thank you. That’s it from my side.
Upasana Rupkrishan Taku
Thanks.
Anand Kumar
Hi Suhanshu, can you hear us?
Shubranshu
Yeah, hi, this branch from Philip Capital. So two questions. One is what is the total percentage of FLDG that we have invoked and that is across how many lending partners. The second is that we had product or an arrangement called lend mocks. So what happened to the money, you know, we obtained from investors under the lend box arrangement? Thanks.
Komal Saran
Sure. Hi. So in terms of fldg, as per the regulatory guidelines we have to, you know the, the default loss guarantee that is permissible to be given by the fintech partner is up to 5% and in most cases we have, in most of our contracts we have 3 to 5% kind of fldg that we have given. So it’s a pretty simple math. I mean we report the credit AUA which is the assets under management in a way or the POS if you like of the loan book that we have. And roughly you can say about 5% of that has been given as FLDG.
Shubranshu
And this is across all lending partners. How many lending partners have invoked it?
Komal Saran
So again in terms of lending we have two models. One is the risk model where we share the risk and we get a portion of the nim, we give FLDG and we also do collection. So across those lending partners, which is really large a part of our book today, we have given fldg. Then there is also a distribution Business which is purely a risk free distribution where it is just a legion model where a customer on our app gets redirected to the lending partner and completes the journey there, there, there is obviously no fldg.
Shubranshu
Right. And what, how many partners have invoked it this quarter is what I was getting at.
Komal Saran
So I, you know, usually what happens is there is, it’s very hard to sort of triangulate that from the financials but in general as a combination of the FLDG and the hurdle rates etc. In general the credit quality has been coming down so therefore the invocation is minimal.
Shubranshu
Right. And the second question on the land box arrangement.
Upasana Rupkrishan Taku
Yeah, hi Shubanshu, this is Upasana. I’ll take that. So on the land box arrangement, as you know, Land box is a P2P NBSC that we had partnered with for a product called Extra and that is available on the app. And all the investors who had invested in that product, you know, they are getting the proceeds of the corrections back as they are coming. So every day, you know, there is collection happening on that and the money is going back to the respective investors in line with the new P2P guidelines laid out by the Reserve bank of India.
Shubranshu
Right. At a point in time we were guaranteeing the IRR there, right under land box arrangement before the P2P guidelines.
Upasana Rupkrishan Taku
Well actually there is no way to actually guarantee a number but one can give a range or up to some. Sort of a commitment. And that was in line with what were the market practices. So whatever, you know, Lendbox was able to promise was in line with what the other P2P NBFCs, you know, were promising in the market. I think something ranging between 9 to 11% and those were the kind of returns being given back to the user. But as and when RBI said that, you know, things have to change, so I think they’ve changed across the sector. And you know, we are just a distributor just like we are a distributor of a loan given by a large regular NBFC. Similarly we were a distributor even in the P2P NBSC model.
Shubranshu
Thanks. Great.
Anand Kumar
Thank you very much. Hi Vishal, can you hear me?
Vishal Khandelwal
Yeah, hi. Am I audible?
Anand Kumar
Yes, loud and clear.
Vishal Khandelwal
Yeah. Hi team. So I have three questions. First on the lending take rate which is which comes to around 8.4% in this quarter. So can you just highlight which are the key components in this as in how much of this is contributed by upfront commission or sourcing fee, how much is collection bonus, etc. That’s the first part Second question is are we working on merchant advances? I think we were planning that this should go live sometime. So has it gone live? And if not then what are your plans regarding that? Third question would be if you can just mention the net cash number that we have, current cash that we have on books.
Anand Kumar
Sure, sure. So I’ll take the first questions. So see last quarter that entire disbursement happened on Zip EMI. Right. Where the unit economics we make net 4 to 5% is the net we make. And how the economics is basically there’s a revenue sources interest, net interest in net interest margin plus processing fees. Right. And then we deduct credit cost, underwriting cost, collection cost, etc. We make net 4 to 5% on the ZIIP EMI product. On the, on your second question on MCA, MCA is still very nascent. We recently started. We are building the infrastructure but currently it’s live. But it is too small to report separately. On your third question, how much cash that we have on the balance sheet as on the 30th of June as on the 30th of June the number is around 475 crores.
Vishal Khandelwal
Okay, so this 475 crores doesn’t include any guarantee related FD that we would have kept aside, right?
Komal Saran
That does not include. Correct.
Vishal Khandelwal
Yeah. Right. So just one thing you mentioned net of 4 to 5%. So that balance 8.4%. How does that add up to that? 8.4% on the margins.
Anand Kumar
So 8.4% that we show this is a revenue as a percentage of disbursement. Right. So the revenue basically in this quarter that is in last quarter Q1 FY26 divided by the disbursement in that quarter. So that’s the take rate, the financial services take rate, right?
Upasana Rupkrishan Taku
No, no. I think he’s trying to understand the unit economics that if you made eight then you’re making net four.
Anand Kumar
So I’ll, I’ll give you that split by revenue and cost. So our gross revenue which is NIM plus processing fees is roughly 10 to 12%. Right. And that includes my processing fees and NIM processing fees will be roughly 4 to 5%. And the rest basically it’s a NIM in that 10 to 12% gross revenue. And post that there is a 7% credit cost, 6 to 7% is the credit cost and then 2% underwriting cost, collection cost, etc. So the net we make 4 to 5%.
Vishal Khandelwal
Sure. Okay, I think I’ll connect with you later. I’m still not very clear but yeah, thanks. Thanks a lot.
Anand Kumar
Hi Vishal, are you there? I am.
Unidentified Participant
I’m done with my questions. Yeah, thanks.
Anand Kumar
Right, right. Hi Siddharth, can you hear me? Hello Siddharth, can you hear me?
Upasana Rupkrishan Taku
Go to the next person.
Anand Kumar
Hi Fawaz, please go in. Hi.
Unidentified Participant
Thank you for taking my question. So I have a two part question for this. My first question being you mentioned in your gross take rate is around 9.5 to 10.5%. In your distribution model, would you be able to explain how you make those revenues in quarter one, when you source, what is the percentage of revenue you recognize? Quarter two, quarter three and at the end of collection, how do you recognize? So I’m just asking you your recognition patterns over here. That’s my first question. And my second question is, so do we do lending to both merchants and consumers? If so, what is your lending disbursement to both of them and what is your guidance for both of the sectors?
Komal Saran
Sure. This is Kumal. Maybe I’ll take your second question first and then dovetail into your first question. So we do lending to both customers. As well as merchants. But like we mentioned earlier, the merchant loan part of our business is much smaller and therefore we feel it’s too small to disclose right now. Largely the number that you see in terms of credit disbursals is the sort of loans to consumers via our app and again mostly done in the risk sharing model where we have to give DSG and we get NIM against that.
Now coming to your first question and the way we recognize revenue, when a loan is given, there is an upfront processing fee that we get which is booked fully upfront. Right. Which is to the tune of 4.5%, 5%. And thereafter we keep earning a NIM over the life of the loan. Right. Which actually translates into the balance 3, 3.5%, rendering our overall take rate to be 8%. There is also small elements of penal charges, late fees, etc. I mean that’s too small in the overall context. But that is a general way in which we recognize and earn revenue on lending.
Unidentified Participant
So in this case you only added up to 8%. So if it was 12%, would the NIMS be higher?
Komal Saran
So what we meant was that the 12% number which Anand spoke about earlier was on the overall book. What I mentioned is the way we recognize revenue on the POS or the outstanding of the loan.
Unidentified Participant
All right, got you. And another question on the same one out here, which is this, you had said for a Nim sharing model, what if you’re Just a distributor but you’re not getting a portion of nims.
Komal Saran
So if we are just a distributor we typically make 3.5% or so and then there is no financial guarantee expense also against it. So it’s just a one time revenue which is booked up front and it is in a way for generating that lead and just distributing the loan to that customer.
Unidentified Participant
Okay, thank you. And one last question from my side which is what do we think about the whole FLTG situation? Are lending partners willing to contribute to fltg?
Komal Saran
So we as a fintech partner have to sort of provide the fldg? I know there’s been a little bit of regulatory sort of changes and the industry and the sector is representing to the RBI on that. But like I mentioned earlier, at the end of the day, whether it is FLDG or whether that risk number is baked into the nim, the unit economics of the loan does not change. The credit profile. The return that you make on a cash basis, that does not change. Of course what happens is when you’re in an FLDG model, larger part of your cost knocks off in your P and L upfront because you’re given that guarantee.
So that goes up front. But the revenue that you’re recognizing is over the life of the loan. So in a way both of these models equal out through the life of the loan. In the other model where you’re not giving FLDG, your NIMs are lower because this risk number is adjusted in the NIM itself. So frankly, over the life of the loan it’s the same accounting wise FLDG model gives you a hit first. But we feel as a company that we’ve raised IPO proceeds for providing FLDG guarantee. It was also regulatory directive and it is also prudent. So I think we are right now on that model only with most of our lenders and we expect that to broadly continue.
Unidentified Participant
I totally get that but my question was as to are banks and NBFC still continuing to go the FLDG model or they want to get back to the normal model? Because it’s the whole regulatory situation out there. That was my question. And also are they seeing any turbulence in the whole consumer segment or are you guys seeing any turbulence in the consumer segment in terms of lending disbursement?
Upasana Rupkrishan Taku
Yeah, I’ll take that for vas. This is Upasana. So I don’t believe that there is any problem with banks or NBFCs to work in the DLG FLDG model with FinTechs. In fact that is the predominant model and that is a model that RBI has also very nicely documented now in the guidelines. As you can see we have grown almost 31% in terms of disbursal this quarter and last year, last quarter we did 32% growth in disbursals under the same model.
So we are not facing any challenges in disbursing under the DLG model while at the same time we are also because we cannot cater to all of our users under the DLG model based on underwriting principles. So we are also doing the lead gen model on cards as well as personal loans where there are certain users where we may not be able to give them loan under the DLG model but some other lender is willing to take that lead and give them the loan. And we are very happy to book the Legion fee in that case.
Unidentified Participant
Thank you.
Anand Kumar
So there are a few questions on chat as well. So we will take first question from Urvashi Mishra, your payment GMV has hit an all time high of 384 billion, up 53% year on year, but net margins is still at 15bps. What is the roadmap to improving monetization here, especially in the 0MDR environment.
Komal Saran
So hi Urbashi, I think we spoke about this briefly at the top of the call. We do believe that at 15 basis points the payments margin is quite healthy. It is probably among the highest if not the highest in the industry. And while UPI contribution is increasing, we are trying to optimize the other costs and ensure that this margin that we are able to earn for ourselves continues to stay. I think as we go forward the other drivers of take rate being higher will continue to of course be revenue growth, more wallet growth which we feel is a differentiated and strong use case, more devices growth which we also spoke about, seen as becoming of a low base and also sort of regulatory interventions like interchange on pocket UPI which could have an additional revenue upside for us.
Anand Kumar
The second question is gross margin for payments rose to 78%. Could you break down the drivers behind this jump?
Komal Saran
So payments business, I mean it is the gross margin is a function of the net margin or the net take rate of 15 basis points that we just discussed and it has increased from sub 25% to 28% this quarter. We do expect it to remain in this 22 to 25% range. It is a function of the traffic mix, optimization of cost etc. But broadly it will stay in this range.
Anand Kumar
So if you see Urvashi, if you see quarter on Quarter expenses, that’s a direct expense. On the payment side there are two direct expenses that we have. One is the payment gateway cost and the other is user incentives. So both the cost were optimized in the last quarter, that is in Q1 our user incentive actually improved that is reduced by 57% while the payment gateway cost reduced by 27%. So that’s the main drivers for better gross margin in the payment business. The third question is fixed costs have remained steady for five quarters. But with users and merchants growth, what are the cost pressures you are anticipating over the next two quarters?
Komal Saran
So Rishi, I mean appreciably so. I think the fixed cost, like you’re rightly saying has stayed same. But in terms of pressures, be it user or merchant growth, I don’t think we are expecting any great increase in fixed cost. I think this is a business which has significant amount of operating leverage as revenues grow, upside of revenues come through your direct costs like bank costs, etc.
Control there is not a significant need to expand the fixed cost base and therefore we feel incrementally the operating leverage in this model is quite high and we are well invested for growth in terms of be it customer acquisition, merchant acquisition. I think the existing machinery is there from a capital perspective. Also the IPO proceeds are there. So we do not anticipate a significant amount of pressure on fixed cost. And any of that growth will also be revenue accretive and margin accretive. So therefore it would stay in the same range for the next couple of quarters.
Anand Kumar
Okay, there is one more question we will take. So there is a question from Deepak Ajmera. Question is how do you see your expenses in upcoming quarters for lending business Also give the reason for the same.
Komal Saran
So lending business, I think like we are saying quarter on quarter we are seeing improvement in disbursement. Plus there was also an accounting change which basically meant that large part of the credit cost was booked up front and revenues are actually rear ended. Now we are expecting that by September, which is when the one year impact of the lending related accounting changes get seasoned, we will get back to the 40% margin as far as the lending business is concerned. So what you see today in terms of the lending Gross margin at 14% or so, we expect that to secularly improve and reach 40% by H2 of this year.
And that will also have an impact on the overall company EBITDA. And we do expect that basis that recovery the overall company will become breakeven at an EBITDA level and of course profitability from there on is inevitable as a function of the fact that this business has significant operating leverage.
Anand Kumar
Hi Siddharth, can you hear us?
Unidentified Participant
Yeah, can you hear me?
Anand Kumar
Yes, yes, loud and clear. Please go ahead.
Unidentified Participant
Okay, apologies for earlier, I just had maybe some clarification questions. Is you know volumes under pocket UPI, are they counted in this 35% UPI number that was mentioned or is that separate?
Anand Kumar
Yes, it’s under this 35% number that we mentioned.
Unidentified Participant
Got it. And you know I think as your UPI volumes went 30 to 35% but it seems the take rate, just looking at it, reduced a lot more from 68bps to about 55. Was there anything else impacting that?
Upasana Rupkrishan Taku
No.
Komal Saran
Look, at the end of the day Siddharth, that sacred is a combination of the various products that we have, right? Like BBPS is a product which has lower take rates, etc. So it is just a mathematical outcome. And I, I wouldn’t worry too much about quarter on quarter trends but more in terms of the longer duration trends and I think more importantly the net payments margin which is actually in fact slightly improved this quarter to a little bit over 15 basis points.
Unidentified Participant
Yeah, no fair. And my last question, I think you had spoken about it just previously on the 40% margins in lending coming back. But just to clarify that’s not dependent on the zip product coming back or the shorter tenor products. Coming back and. Dispersals happening under that?
Komal Saran
No, that’s not dependent. And like I also mentioned that that’s actually more dependent on the book seasoning and you know, the accounting changes in a way becoming more normalized because till now what had happened is consequent to the changes in September 24th. What? And given that the book size is smaller because the macro had become weaker, a large part of the cost was hitting upfront but the revenue was not kicking in. Now with macro also recovering versus increasing and that cost getting more stable, that is what is going to cause the, you know, the 40% margins to come back in.
Unidentified Participant
Correct. Okay, that clarifies it. Thank you so much.
Komal Saran
Thank you Siddharth.
Anand Kumar
Thank you Siddharth. I think there are no further questions.
Upasana Rupkrishan Taku
Let’s see the chat box.
Anand Kumar
There is one question from Harsh Mehta. Why has the gross margin in financial services gone up from 4% to 13%? I think we have already addressed this. The primary reason is the lending related expenses as a percentage of disbursement has gone down and the take rate has improved from 7.4% to 8.3%. Hi, we are just going through the chat. We’re just making sure that we don’t miss anything. Okay. So there is one question. When do you expect to be breakeven?
Upasana Rupkrishan Taku
Yeah, hi, this is Upasana. So I think we mentioned this at the beginning of the call but I am very happy to reiterate. So what is happening in the business is that the business is going nicely and we are doing very well in payments every quarter. We’ve done exceptionally well in Q1 last year and Q2 last year on both payments and lending business. But subsequently in Q3 and Q4 the lending business had taken a huge beating because of the slowdown in the market itself and we are working hard towards recovering that and we are seeing recovery in quarter over quarter today.
Where we stand in the current quarter we’ve reported a 30% plus improvement in EBITDA and overall EBITDA is also negative 31 crores with a swing of 15 crores from Q4 to Q1. So mathematically if we are able to achieve a similar spin of 15 crores then in about 2 quarters we should break even on a conservative basis. Let’s say we are not able to achieve that, let’s say we are able to do, let’s say 10 crores of swing in the next few quarters, then also we should break even. So we are quite confident that in this financial year, either in Q3 or Q4 we should be able to break even and then work towards building far more profitable growth engine in the next financial year.
Anand Kumar
Thank you all. We have covered all the questions, we have gone through the chats as well. So thank you everyone for joining the call. Have a great evening.