One MobiKwik Systems Ltd (NSE: MOBIKWIK) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Unidentified Speaker
Nitish Jain
Komal Saran — Chief Financial Officer
Upasana Rupkrishan Taku — Chief Financial Officer, Whole-Time Director (Promoter)
Bipin Preet Singh — Chief Executive Officer, Managing Director (Promoter)
Analysts:
Unidentified Participant
Aman Jain — Analyst
Rahul Jain — Analyst
Harsh Vardhan Agarwal — Analyst
Arvind Kodipaka — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Mobiquik Limited Q4FY25 conference call hosted by Investec Capital Services Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitish Jain from Investech India. Thank you. And over to you sir.
Nitish Jain
Thank you, Azrath. Good evening everyone. Welcome to the Quarter 4 FY25 Earnings Conference Call of 1 Mobiquik Systems Limited to discuss Mobiquik’s financial performance and address your queries. We have with us Mr. Vipin Preet Singh, Managing Director and CEO, Ms. Upasna Taku, Chairperson Executive Director and CFO Ms. Komal Saran, Head Finance Corporate Development and IR and Mr. Anand Kumar, Head of Corporate Development and Investor Relations. I would now like to hand over the call to Ms. Komal for her opening comments. Over to you Komal.
Komal Saran — Chief Financial Officer
I will start by giving a short overview about what Mobiquik is, what it does and little bit of our performance and we will then hand back over for questions. Mobiquik, as you know, has built a business primarily focused on wallet. Over the last 15 years we have seen significant growth in our payments GMB in this space and we believe we have carved a niche for ourselves as a leading wallet player in India. We’ve also introduced innovative products like Wallet and UPI which is a smarter way of doing upi, keeping our bank account safe, clutter free.
Over and above that, we have built a lending vertical. Lending as a market we believe has massive potential in India given its underpenetrated Nature. Across these two businesses, we’ve been earning an overall 30% contribution margin. Payments as a business, as you know, affords us about 20% margins. Lending at a portfolio level was about 40% translating to 30% margins at a company level. Going forward, we feel there are three key drivers for our business. First pillar of our growth will be the continuing growth in the payments business. The major bet for our business continues to be in the payments space.
As you saw in our IR presentation last year, we have grown our GMV by over 200% to cross 1 trillion or 1 lakh crore of GMV on our network. We see payments GMV only accelerating from here on given the increasing digitization of the economy and use cases within payments. Besides existing use cases we also expect exponential growth in in not just Pocket UPI but also Rupee Card. Rupee card we feel can become as big as Pocket UPI given its inherent product market fit and good unit economics. Moving on to Lending While we’ve all seen the past few quarters, we’ve had certain regulatory changes which have impacted this space.
However, we feel recovery is imminent in this space and it should start reflecting in numbers in the second half of the year. We are already seeing positive commentary from banks and NBSC partners for an H2 recovery. The regulatory changes, while they had a short term negative impact, have also had overall positive impact in the space, including streamlining the pricing for unsecured PL as well as making the business stable from an overall Therefore, lending we feel is coming off the back of few weak quarters. But it will soon be an inflection point and it will take a few more quarters before it starts getting back to its portfolio levels of contribution margin.
The third key pillar of our growth is our the taxpayer business which is another arrow in our arsenal which we have not yet fired. We have received the full PAPG license from RBI and now we believe we can play an even larger role in the payments ecosystem overall. We do feel that while we are a smaller player in the fintech ecosystem, we remain confident that our headroom for growth is much higher, much disproportionate from here on and therefore we are investing for this growth. Profitability is inevitable. We have demonstrated in 6 out of the 8 last quarter last 2 quarters.
Of course our EBITDA has been negative due to lower CM coming from lending business. Even as we continue the higher investments for future growth, we do feel we are at a point of time where we are well invested for future growth. We are confident of seeing an inflection and the inherent operating leverage in the business model playing on from here on. With this I would like to pass back to the operators to open the floor for Q and A.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchdown telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aman Jain from Gopesa Net Ventures PVT Ltd. Please go ahead.
Questions and Answers:
Aman Jain
Hello Hi hi Team wanted to inquire specifically on There’s a special feature on the app called the Rent Pay feature Where exactly are the revenues for that accounted for in which particular line item?
Komal Saran
Hello, this is accounted for payment line item only. The payment gmv payments GME and revenue from payment services.
Aman Jain
Revenue from payment services and what kind of gross take we have on this specific line of business.
Unidentified Speaker
So we are actually not tracking on a category basis. Our blended take rate for this quarter is 0.64%.
Aman Jain
This is for the entire. This is for specific payment GMB.
Unidentified Speaker
Payment GMB. So in this quarter we have done 30303100 crores of GMV. In this quarter for the entire year we did one 15,000 crores. So for this 33,000 crores our take rate is 0.64 crores.
Aman Jain
And what is the contribution of this specific line of business for the rent business? Rent education payment?
Unidentified Speaker
We are not tracking it actually on the use case basis.
Aman Jain
Okay, and what would be the top three use cases within this and where exactly how are you seeing the growth going forward within the payments vertical?
Unidentified Speaker
So if you see our numbers, last year we have done 38,000 crores in FY24 for the full year we had payment GNV of 38,000 crores. And this year we have done one 15,000 crores of total GNV. So you would see use cases like UPI, BBPS, wallet. These are growing extremely well. So we are seeing growth across categories.
Aman Jain
Sure. That’s all from my side. Thank you very much. I’ll come back.
Unidentified Speaker
Thank you.
operator
Thank you. To ask a question, please press Sharan 1 now participants who wish to ask questions may please press Sharan 1. At this time the next question is from the line of Rahul Jain from Daulat Capital. Please, please go ahead.
Rahul Jain
Yeah. Hi, thanks for the opportunity. Just have few questions. Firstly related to the lending business which continues to see some challenge and the Q4 exit rate is pretty weak versus what we started off with. So any color. If we could talk in terms of what kind of growth we are expecting in this sector segment for FY26. We do, we think we can do a positive growth given the exit run rate. And similarly if you could give flavor to the full year. Because even on a full year revenue basis the Q4 revenue is same as what it was, Q4 FY24.
So are we seeing any growth for FY26 and what should be the driver for the same? Thank you.
Komal Saran
Thanks for the question. Rahul, I think in terms of the overall digital credit number that we report, I would urge you to strip out the zip GMV which again we’ve highlighted in our presentation that the shorter duration product is something that we are discontinuing. So the real number to see is the zip EMI GMV and that number actually has continued to grow. We do feel that Q3 was really the sort of bottom quarter as far as lending is concerned. Between Q3 and Q4 that number has grown 32% quarter on quarter. And like I mentioned at the top of the call in my opening remarks that given in any case we work with partners, both banks, NBFCs, we are seeing positive commentary from lending partners about a potential recovery in the second half of the year.
And we do appreciate the pace at which our partners want to disperse. Right. So we will only grow at the pace they want to grow. But we are equally confident that the worst is behind us. And to that extent, what you were saying in terms of exit for March. Definitely. While again those numbers are not disclosed, but that was I would say higher compared to the previous two months of the quarter. In terms of overall revenue, it is a function of what the disbursement is. In fact you would see that given the fact that we have continued the shorter duration product, the take rate has only increased.
So therefore to that extent revenue should flow through from higher disbursement and that is something which we continue to track. Secondly, I would also say that in the lending space, besides an overall recovery, I think we are also enhancing two things. One is the product suite which is effectively also focusing on risk free distribution where we’ve ramped up over the last quarter or so. And secondly, also increasing the products that we offer. The rupee credit card, like we’ve been saying in the past, is a replacement of the shorter duration product that creates a good 30 day credit product while also creating a funnel for the overall longer duration products.
So we are continuing to focus on that and focus on profitability.
Unidentified Speaker
Plus secured products. Secured products. So basically loans again mutual fund. Right. First card, which she has highlighted earlier.
Rahul Jain
Right, Right. And just one last piece on the lending part. Our lending expenses continues to rise. Is it pertaining that realignment with one customer that we have reported some exceptional charges? Is that what is causing this recurring cost to increase while the revenue have not in the same way? Or is it pertaining to some DLG allocation which might have happened while the revenue might come much later? So any color on why lending expense continues to rise while revenue goes down?
Komal Saran
That’s correct. So like I think you’ve answered the question yourself mathematically one, the revenue is low so so therefore the lending related expense on a lower base Shows higher. Secondly, we’ve also moved to the DLG model starting September where a larger part of the cost gets booked upfront, pretty much all the cost gets booked upfront and very small revenue comes up front. So the revenue is back ended, cost is front ended and that is causing the overall lending related expenses to be slightly elevated mathematically. But from an overall credit quality of the book, we remain confident that that quality has continued to hold.
Rahul Jain
Right. And Upasana, on the, you know, usage of funds point of view, we see that basis, the utilization of fund that most of the investment so far has gone into the payment side of it and not so much on the devices or the lending side of it. So when we plan to scale that up and where this investment on the payment side is going, is it going toward advertisement or customer acquisition side? If you could elaborate that.
Komal Saran
Sorry Raul, this is Komal here. I’ll take that question. So you’re right, I think large part given the fact that the IPO proceeds only came to us at the FAG end of December and we started using them in a way towards the second half of January as we did those expenses. Right. Therefore you see that utilization has been lower. But within payments it is going across pre funding of a product, across acquiring customers, across incentives etc. And of course within lending, the stated use case is the FD for the new FLDG contracts and it’s being tracked as per the plan and as per the business performance.
Rahul Jain
Right, right. And so the one part of it remain unaddressed like when we plan to scale that investment on DLG and devices side and when we start reporting that the devices, you know, count or in terms of subscriber base, when we reach that scale, when we start reporting that data.
Komal Saran
Yeah.
Upasana Rupkrishan Taku
Hi Rahul, this is Upasana. So thanks for the question. So on the lending side, with regard to using the money for the DLG FDS that we have already started doing starting from January and on the merchant side also in terms of the deployment and scaling up in terms of new merchant acquisition, soundbox card, edc, machine deployments as well as on the merchant loan side, we are making steady progress. But if you track the overall status of the business, we have been predominantly stronger on the consumer side and therefore more investment and more growth on the consumer side, we are trying to scale up on the merchant side also across devices as well as merchant lending, but currently that is a small business for us and it will take us a little bit of time to scale that up.
Rahul Jain
And on the balance sheet side, if I see our borrowing plus other liabilities as a combination have scaled up of 450 crore to 620 crore from H1 to now. I understand that proceeds have come in December but still the liabilities continues to remain high. So is it like the, the covenant of the past liabilities are such that we cannot, you know, pay for it for now or is it a restriction from a usage of fund perspective which is limiting this?
Upasana Rupkrishan Taku
So Rahul, as you have seen that the payments business has scaled 3x during the year, you know, FY25. And basically in the payments business, you know we have a large wallet play. And so therefore there is a user outstanding and merchant outstanding at the end of every single day. And that would be the case in terms of the 31st of March also. Perhaps it would even be two days if it’s generally a holiday on 1st of April. So that’s what it is. Because of the scale up of the business you should expect that the liabilities for one day, you know, will go up.
And if we scale up payments even further next year, this will be again a higher number but that gets paid off the next day.
Rahul Jain
Understood. And it’s like a two day investment on the GMV side of it.
Unidentified Speaker
That’s right.
Rahul Jain
Right. And just last, last question from my side if I may. On the payment business side, I understand our wallet, you know, it continues to be the star performer but our take rate continues to go off. So is it like the. The UPI mix is impacting this number or and what is your sustainable expectation on the take rate? Because it has been coming off the last three, four quarters on the payments.
Unidentified Speaker
Yeah, yeah. So see on the take rate side I think you are highlighting revenue divided by the gmp. Right. For recent quarters. So if you look at the UPI number also. So our UPI contribution of the overall GMB has gone up in Q4. So earlier roughly it was nearly 30% which has gone to 36% now. Right. So the take rate is roughly in the same range. If you remove upi but because of UPI contribution is going up, the take rate you looks like is slightly on a lower side. That’s not the case. But the ideal way to look at is the net payment margin which is basically take rate minus payment gateway cost minus user incentive.
In the last quarter actually the net payment margin has gone up from 13bps to 15bps as you compared quarter on quarter.
Rahul Jain
Right, right. Okay. Thanks for. Yeah.
Unidentified Speaker
If you see last quarter the gross margin is at 23.9% which is net payment revenue minus payment gateway cost minus user incentive. If you do net divided by revenue which is 23.9% for payment business.
Rahul Jain
Yeah, yeah. We have noticed that there is a gain on the payments margin. Fair enough. That’s it from my side. I’ll fall back in the queue. Thank you.
operator
Thank you. The next question is from the line of Harsh Vardhan Agarwal from Bandhan amc. Please go ahead.
Harsh Vardhan Agarwal
Thanks for the opportunity. Just wanted to understand on the lending piece what kind of run rate in the disbursement one should assume and also some. If you can give some ballpark ideas as to what the take rates could be and what the related expenses could be, that would be really helpful.
Komal Saran
So on lending I think like we’ve been highlighting while we will not be able to give any specific numbers but we are expecting and seeing early green shoots of recovery, we should sort of go back to at least what we used to do four quarters back as far as lending is concerned over the second half of this year. I think happy to also state that take rates in lending have continued to remain stable. So from a unit economics perspective, net take that we earn which is after the DLG cost and other credit costs etc. Can be about 4 to 4.5% range.
And lending in a steady state once the book is stable earns us a contribution margin of 40%. So we do feel that over the next few quarters we will vector towards that.
Harsh Vardhan Agarwal
So ma’ am, just to understand this, for this quarter our revenues were at around 56 crores in the lending business and their EBITDA was around 2.5 cr. So we expect this waterfall to be maintained over the next over the coming quarters. Is that how one should look at it?
Unidentified Speaker
So Harshvardhan, you said the revenue of 56 crore in the recent quarter. What was the second point that you highlighted?
Harsh Vardhan Agarwal
So if I did the lending revenue then if I, if I were to subtract the expenses, you left it around some 53.8 crores of expenses. So you left it around 2.5, 2.4, 2.5 cr. So should one expect this waterfall to remain steady over the over the coming quarters?
Komal Saran
So like I explained at the beginning of the call, there is sort of, you know, there has been a triple whammy of sorts where dispersal is lower right? And therefore the base is lower over and above that. Given that we move to the new DLG contract starting September, this is a full quarter impact of the new DLG contracts where large part of the cost of the expected credit loss gets Booked upfront and that is reflecting in the higher cost. At the same time the revenue is deferred. So revenue is back ended, cost is front ended and that is what is causing the overall contribution margin to be lower.
We do feel that as it stabilizes over the next two or three quarters the portfolio contribution margin which lending used to get to us of about 40% that should stabilize in the same ballpark.
Harsh Vardhan Agarwal
Okay. So I think maybe at around 40% is what it should stabilize over the period of time.
Komal Saran
That’s correct. As the book stabilizes, as we’ve kind of, you know, Today roughly about 50% of our contracts are on the FLDG model. It’ll take a little bit of time to quarter, perhaps a little bit more for 100% of book to be on the new contracts. Once that happens and once lending also stabilizes and steps up in terms of disbursement, we do feel that it will come back to the overall gross margin which was 40%. If you see last year or inherently as a product, it is a 40% margin business.
Harsh Vardhan Agarwal
Great. And just one last question. On the payments gmv, what kind of growth rate one should expect? Maybe I understand you may not give number but maybe let’s say in the industry, industry growth rate versus plus 10% or how should one look at it.
Unidentified Speaker
See Harshwadan, if you see our yearly numbers, right? If you see last two, three years number. In 23 we did 20,000 crores. In 24 we did 38,000 crores. In FY25 we did 1 lakh 15,000 crores. Right? So we are kind of a. Last year we have achieved over. Achieved more than like 100% plus last year in FY24, nearly 100%. So we are kind of a doubling every year, right? So we expect a healthy growth rate going forward on the payments. And we are quite positive on this business.
Harsh Vardhan Agarwal
That helps. Great. Thanks a lot. All the best.
operator
Thank you. Ladies and gentlemen, we would like to remind that you may press char n1 ask a question. Participants who wish to ask questions may please press charan one at this time, ladies and gentlemen are requested to press char and one to ask a question. Participants who wish to ask questions may please press star and one at this time. We would like to remind participants that you may press star and one to ask a question. The next question is from the line of Arvind Kodipaka from IME Portfolio managers. Please go ahead.
Arvind Kodipaka
Hi, Am I audible? Hello.
operator
Yes sir. Please go ahead.
Komal Saran
Yeah, we can hear you.
Arvind Kodipaka
Yeah. Hi. Hi. Hi. Thanks. For the opportunity. Just wanted to get a couple of things around the payment side. What will be the key driver? I understand payments growth is something that’s been accelerating in terms of Pocket UPI and Rupee card or rupee card is the potential that everyone’s been talking about. What will be the driving force? Your average ticket size, frequency, or in terms of of your registered users? Among those three factors that typically everyone talks about on a platform, what would be your main driver there?
Bipin Preet Singh
So Arvind. So I’ll take this as Bipin. So look, I mean, what we have seen is that our hero product currently is Pocket UPI and followed by Rupee Card, which is, you know, in the process of actually just getting the right growth numbers right now it’s very early. Which is the first card? Both of these are indexed on upi. The first one, especially Pocket upi because of the deep experience we have built over the years on the wallet business and also the recall that we have with the customers of being a wallet. There is a, you know, there is a great benefit we are getting as more and more customers are discovering that they can bypass their bank account in order to use UPS and they can use Wallet.
So the kind of retention numbers that we see there, the kind of growth numbers that we see there are significantly better than our overall business and of course much better than anything that is there in the industry. So we do believe that this business will become extremely important, continues to be extremely important for the growth of user engagement and then thereby resulting in the same users can then use the card in different circumstances and the same user can then sometimes use Bank UPI also. So overall, we believe this Pocket UPI is the kind of hero product and with its high retention and the fact that we are the kind of a very natural choice given that there is not much alternatives available for such a product that, you know, we will continue to get the benefit over the next years to come.
Arvind Kodipaka
Yeah, sure. No, I understand that because I personally also experienced the Pocket DPI and a bunch of people that I know have sort of move their tables that way. So I understand the HERO product proposition and it’s excellently advertised and serviced. But what I’m trying to get to is over the next, say two, three, four years, right, Even with competition, without competition, will the NTU growth drive the majority of payments growth or is it more the existing users who keep mining more and more and increasing wallet share? Right, because it’s obviously a combination of that.
But which one is the bigger driver that we guys are focusing on?
Bipin Preet Singh
So I would say that, I mean you answered it. It’s a combination of both. But what I would think is a significant percentage of UPI users in the industry have yet not experienced Pocket UPI and the benefits and convenience of something like Pocket upi. So what we are trying to do is to make sure this communication we can take as far and wide as possible. It’s also obviously we have lots of KYC customers. We have one of the big KYC basis as a wallet company in India. So even amongst our current base there is a decent percentage of customers who have not yet started using Pocket UPI because historically many of them were using Wallet and then as wallets became less relevant they moved to upi.
But now we are seeing that they are actually discovering Pocket UPI and getting back on the UK bandwagon. Pocket UK and the Wallet bandwagon. And of course, you know, if you see the overall user base and just the brand penetration of Mobiquik, it’s obviously not the biggest in the industry. Right. So we, like Komal was saying, we have a huge headroom for growth in terms of just adding users. So we believe that doubling or tripling this user base is something that is very much doable over the Next, let’s say three to five years. Of course our current run rate is about 20 million or so which we are adding on a yearly basis.
What that does is actually exposes more people to the idea of Pocket UPI and therefore increases the opportunity for them to come and become retained in our customer base.
Arvind Kodipaka
Sure, perfect. I understand. Secondly, on the NDR and upi, I understand this is of course the NCPI subject and we have to finalize this. Given the fact that say about 30, 35% is UPI, what proportion of this do you think will benefit from this MDR in terms of say, I think the condition was what, greater than 2,000 rupees per transaction. I forgot the condition, I apologize. But what proportion of this would benefit from the new introduction of India?
Bipin Preet Singh
So I think we can’t give the even. We, we’ll have to do some maths to come up with what portion will display, will get it. But like you said, MDR on upi, MDR on ppi. UPI is something that is already, you know, in motion from RBI and it’s under discussion in the payments ecosystem across multiple industry players and should go live soon. From our perspective it will definitely bring like a new source of revenue which today we are not getting. And so it’s basically all 100%, you know, a profit for us from where we stand today of anybody using Pocket UPI and we do believe a decent chunk, a decent double digit percentage of our GMV will benefit from this mdi.
Arvind Kodipaka
Sure, sure. And one final question on the payments front, I understand you given me a 40% contribution margin stabilized sort of financial services guidance or more or target. What does the net payment margin before we start digging in or before we start looking at MDR benefit because that’s something they don’t have a full picture of. Although that looks like is that the same trend mid-20s phase as we’ve seen in this quarter.
Bipin Preet Singh
So I think if you see the last many quarters of Mobiquik where actually we have been publishing results even before we went public we’ve been publishing yearly and even before that two years back we’ve been publishing reports. I think for us the payment business has always been a contribution margin positive business and historically it was 15, 16, 17% and as we doubled down and got more high quality users it has gone to about 20% right now and it has stayed in that 18, 19, 20% and now about 20% zone consistently. So when the MDR comes on PPI, UPI, this itself will be directly impacted because it will directly contribute to the net contribution margin of the payments business.
Arvind Kodipaka
Yeah, no, sorry if I wasn’t here, I actually whatever. What I meant was before the India fixed what would the stable normalized net margin profile that payments business would likely see? Because I know what you’re saying. The 16, 17, 18 that we’ve seen in the last June September December quarter but in the quarter ending March we’ve seen it jump to about 25. So that’s a healthy jump and I’m not complaining about that. But the question is that sustainable?
Bipin Preet Singh
Yeah, I think it should stay in the same zone 20% plus even without the PPO and UPI MDR.
Arvind Kodipaka
Perfect. Can you just elaborate one last thing on from my end. Can you just elaborate on the ZackPay strategy? You obviously received the PA license and this will be targeted towards online merchants and just wanted to understand what would the spending on that front be and what would the merchant acquisition strategy look like on that front and how big do you think this will? Because I do. I’ve seen your historical numbers on Payment Gateway and it did grow healthily and then I think we had some suspension or temporary blip there because of the license requirement.
So how do you see this business shaping up and what would the profitability look like? Broader strategy center on this.
Bipin Preet Singh
So on Zagpay Look, I mean it’s a business as a subsidiary that has existed for long time and we have built the platform first. We actually built a platform to process payments for mobiquick and still a decent percentage of mobiquick’s processing. Payment processing does happen via zagpay over a period of time. We opened it up for other merchants as well, which is I’m talking about many years ago with very high quality and large merchants in the travel space, in the E commerce space, and they continue to use ZakPay. However, we have historically under invested in this business and specifically what happened after Covid is when the licensing piece came, we, you know, got stuck because we didn’t get the license on time.
And so I think there was a period of uncertainty. Thankfully, that period of uncertainty is now behind us. We have got the full license for ZakPay now. If you imagine the digital payments ecosystem, especially the online payments ecosystem over the next few years, everybody knows that payment gateway and payment aggregators want to play a significant role. Zagpay is extremely small right now compared to the industry leaders. But it also means that there is a significant opportunity for us to unlock value by focusing and selecting the right use cases, the right set of merchants and the right set of partnerships that we are very confident building to build a sizeable business which will start contributing not just to the GMV but also to the profitability of the overall business.
Coming back to Profitability specifically, look B2B payment business like a ZakPay is inherently profitable because you know you have a cost which you incur on processing a payment and then there is a charge that you make to the merchant and the difference is what is your profits. So inherently it is profitable. Marketing costs are usually low. It is just fixed costs. So therefore we are very confident that the profitability that zakpay has shown by the way consistently over the last many years and it is disclosed in our zagpei’s statements, also means that this business is going to be very important for us over the next couple of years as we scale it and its margins and profit will start contributing to mobiquik overall.
Arvind Kodipaka
Sure. Perfect. Just last question. We see one of the major wallets players not be operational for a while and they’ve spoken about some partnership on the verge, maybe another few months. How are we positioned to say any sort of rise in competition on the wallet side?
Upasana Rupkrishan Taku
Hi, this is Upasana, so I think that it’s excellent if there is more competition in the wallet space. We do want wallet As a sector within all the larger payments sector to also grow. Currently we are the dominating player in this sector, but there are other players also that have a play. But we expect that with more entrants coming in and building on the wallet side, the overall pie will increase and we will continue to gain rapidly from that growth.
Arvind Kodipaka
Sure. Okay, that’s about it from my end. Thank you.
operator
Thank you. The next question is from the line of Nidhish Jain. Please go ahead.
Nitish Jain
Hello. Am I audible?
operator
Yes sir, you are.
Unidentified Speaker
Yeah, loud and clear.
Nitish Jain
Hi, thanks for the opportunity. Just one question is how should we think about the indirect costs going forward? Currently we are at a run rate of around 120 crores per quarter. How should we think about going into FY26?
Komal Saran
So indirect cost, if you see on a quarter, on quarter basis we’ve optimized, we’ve in fact come down from about 119 crores to about 110 crores this quarter. And I think going forward we will continue to optimize, optimize on these costs. We are also using AI to reimagine a lot of customer journeys, a lot of cost line items and ensure we strip out costs wherever possible. And secondly, I would also say that through last year you did see some investment in fixed costs and the company was gearing up for higher growth and you know, to really function as a listed entity.
I think going forward we will only continue to synergize and optimize on this cost. So this would remain at this level, if not lower.
Nitish Jain
That’s it from my side.
operator
Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Upasana Rupkrishan Taku
Hi, this is Upasana. Thank you very much to all the participants in today’s earnings call. We do believe that we have given you a view of our overall business where Payments continues to be the foundation and is the hero in terms of driving growth for the company in terms of users. GMV as well as revenue and the cross sell of financial products is sort of the cream on top. We do believe that with payments doing really well, the overall contribution margins have slightly gone down in the last couple of quarters. But with the distribution of credit products coming back, we are already seeing some early signs of strong momentum there.
We do expect that overall margins for the company will come back upwards of 30% and that will allow us to cover our fixed costs and therefore drive profitability back into the results. Thank you so much.
operator
Thank you on behalf of Investec Capital Services Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.