Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
One MobiKwik Systems Ltd (NSE: MOBIKWIK) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Upasana Rupkrishan Taku — Chief Financial Officer, Whole-Time Director
Bipin Preet Singh — Chief Executive Officer, Managing Director
Analysts:
Rahul Jain — Analyst
Unidentified Participant
Ankush Agarwal — Analyst
Smit Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the 1MobiQuick Systems Q4FY26 results conference call. 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 this conference call please signal an operator by pressing Star then zero on your touchstone pole. Please note that this conference has been recorded. I now hand the conference over to Mr. Rahul Jain from Daulat Capital.
Thank you. And over to you sir.
Rahul Jain — Analyst
Thank you Shapnali. Good evening everyone. On behalf of Dalat Capital I would like to thank One More Be Quick Systems for giving us the opportunity to hold this earning call. I welcome the senior management of the company represented by Mr. Bipinpreet Singh, MD, CEO of the company, Mr. Pashna Thakku who is Executive Director and CFO of the company. Now I would like the management to take us through Q4FY26 result and I request management to take it over from here. Over to you now.
Upasana Rupkrishan Taku — Chief Financial Officer, Whole-Time Director
Thank you Rahul. Very good afternoon to all the people who have joined all the participants on our call today. This is Upasana. Q4FY26 was a landmark quarter for Mobiquik. We ended the year with back to back profitable quarters the full year. Financial year 26 was an inflection year for us. We achieved an EBITDA of almost near break even negative 5 crores with a total swing of 742 million from minus 794 million in FY25 to minus 52 million in FY26. The full year pact halved to minus 6. 21 million an improvement of 594 million year over year from the previous financial year where it was negative 12,15 million.
The payments GMV hit an all time high of 524 billion rupees in the fourth quarter which is 58% YoY improvement and 9% QoQ improvement. This is the 13th consecutive quarter of record high GMV that the company has reported in the payments business within payments in wallet we remain the largest wallet in India by GTV as of March 2026 with about 20% market share in UPI we are the second fastest growing UPI app in India. Now our customer initiated upi transactions grew 170% year over year versus the industry which grew at 26% year over year which is we grew 6.5 times the market rate in bill payments.
Bharat Bill Payments we are the 6th largest customer operating unit by GTV as of March 26th in our overall recharge and bill payments business which is a mature business for us, the total GMV scaled 2.2x to 269 billion rupees in the full financial year. 26 we reported a 48% 3 year CAGR in this business. To clarify, the BVPA COU GTV is a subset of the recharge and bill payments GMV that I just cited in our financial services business. We delivered our highest ever quarterly gross margin at 59% in Q4 which indicates our objective of disciplined expansion profitability prioritized over volume.
Our focus here has remained on increasing dispersals to super prime and repeat users. Super prime customer mix improved year over year from 10% to 32% in the total disbursements while repeat loans went up from 20% to 63.5%. At a consolidated level in Q4 the total income came at 2,960 million which is a 6% improvement. Year over year contribution margin expanded to 46% nearly double of the 23% we had posted in Q4 financial year 25. The EBITDA for the quarter came in at 174 million which is a 5.9% margin reflecting a 632 million year over year swing.
The reported path of 44 million rupees for the quarter includes a 37.6 million one time exceptional charge due to the changes in the Labour wage code. Without this exceptional item our underlying path would have been 81 million rupees for the quarter. In a summary FY26 in the first half we were catching up. We were rebuilding credit quality, compressing costs and restoring our margin. By H2 the business had fully turned. H2 delivered 84 million cumulative PAT and both Q3 and Q4 were EBITDA and PAT positive as we had committed to all of you in the last few earnings calls.
The trajectory entering financial year 27 is therefore much stronger than what our full year numbers indicate. The right way to think about FY26 is this mobiquick now has a core business which is generating real profits. 50 crore of EBITDA is what our core business payments and lending has generated and now we are deliberately reinvesting these profits towards building new growth engines. To be specific, we are focused on four new Growth Engines the first two are merchant payments, offline and online.
Together they represent what we believe is the single largest untapped opportunity in the Indian payments ecosystem. Merchant Payments Both offline merchant payments and online merchant payments operate on MDR device and settlement economics with significantly less competition than what we see in consumer payments. Our offline merchant payment business is targeting a 5x device scale up to enable a 10x revenue growth by financial year 28. Our online merchant acquiring business ZakPay housed in our wholly owned subsidiary is targeting a 10x GMV by financial year 28.
In the payments business, GMV growth precedes revenue. The revenue from what we have already invested is in the pipeline and it will start reflecting in financial year 27. Both merchant payment businesses are on track for EBITDA breakeven by financial year 28. The third growth engine is our NBFC application approval which is the most consequential regulatory milestone in our lending journey. The NBFC helps us establish the right foundation to continue our lending scale up in the most regulated model available in this country.
The strengths that we have built in doing digital lending in the last seven years include underwriting and credit risk expertise. Our collections have been tested in stress cycles and our lender partnerships are in place. All of which will seamlessly transition from our current lending service provider LSP model to the new NBFC co lending model. The NBSP will unlock better economics both on own book as well as in co lending where we will be able to partner with many more partners in the banking and NBSE sector.
We will be able to get better terms in FLDG and we will have an access to a much larger universe of regulated PSU and private sector banks. Beyond just the economics then BFC will also provide us product velocity as an lsp. Every product decision goes through lender approval cycles and we build what they can sanction. As an nbsp we will design products on our own timeline. The fourth and final growth engine is AI Mobiquik as a company intends to be an AI first company by financial year 28. We are already running AI across the business.
80% of code is AI generated, 55% of early connections are AI driven and 86% of customer support is self served by AI and we are going further. AI will own the full lending lifecycle. It will identify funnel drops, drive user personalization at scale and acquire better cohorts at lower spend and it will also help us detect frauds in real time. For us, AI is not just A productivity tool. It is a compounding competitive mode. With that I’ll end my opening speech and we’ll open it up for questions.
Questions and Answers:
Operator
Thank you very much. We will now begin with a question and answer session. Anyone who wishes to ask a question may press star and one on the Rugstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants, you are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all, you may press star and one to ask a question. A reminder to all the participants, you may press star and one to ask a question.
We will take the first question from the line of Rajshah from RK family office. Please go ahead.
Unidentified Participant
Am I audible?
Operator
Yes, you’re audible. Hello.
Unidentified Participant
Yeah. So ma’, am, our payment business from last four to five quarters is struggling to grow in terms of revenue. So what are we doing about this excluding our new growth engine and do you expect IT to cross 220 to 10 crore revenue per quarter anytime soon?
Operator
Hello.
Upasana Rupkrishan Taku
Yeah, just once again as I just explained in my opening speech in payments revenue generally follows gmv. There is substantial GMV growth that we are showcasing in the payments businesses. Across all the businesses of wallet of UPI bill payments the margins that we are earning from payments have also increased. Of course there is more UPI mix in the overall payments GMV due to which we have so far not been able to demonstrate significant revenue growth. But like I mentioned we have invested and we will be delivering growth in the coming days and quarters.
Unidentified Participant
And so any long term guidance for our payment revenue growth?
Bipin Preet Singh
So see basically what Apartna is saying is that here the revenue is going to lag the GME growth simply because the growth that is happening is in a lot of growth is happening around the UPI. And as you mentioned we have grown 170% on UPI over the last year or so. Even our wallet has grown. But the wallet has grown over UPI and that PPI over UPI ndr, you know which is supposed to come has not yet come and we are expecting it to come. So because of that there is a revenue lag. But you will see consistent growth in the revenue follow the GME growth in the next few quarters.
Unidentified Participant
Okay my I have some doubts regarding fldg. So SLDG cost which is a majority part of our lending related expenses is actually not a cost. Right? This amounts get blocked and if lender doesn’t default it comes back to us. Am I right?
Bipin Preet Singh
No it’s not correct. It’s actually, you know, you have to bear the to the 5% kind of a cost. The exact mechanism of how it gets settled is different, you know, but whether it gets invoked or not. But basically the 5%, if your credit cost is 5% then the 5% has to come out of the economics. It doesn’t really come to us also because it’s blocked. You’re right. But it’s part of the overall economic.
Unidentified Participant
But if it doesn’t get invoked, then what happens with that?
Bipin Preet Singh
So basically it keeps on. So as your book is growing, so let’s say you have 100 crores of book. So against that you have 5 crores of fldg. Next month you have 200 crores. So you have 10 crores of books. So you basically against the future losses that are coming. So you have to keep, you know, depositing more and more fldg. If for example the business degrows for some reason then you will start getting the money back.
Unidentified Participant
Okay. Okay, got it. Yeah. High debt and interest costs. You have mentioned that it is working capital due to some settlement settlement with merchants. So can I infer that that our peer who has zero debt and is funding all these through its cash and why we are not doing the same, we have also some cash on our books.
Upasana Rupkrishan Taku
Yeah. Hi. So see, I’m happy to inform that whatever long term debt we had, we have already paid it off. So the only remaining and utilized Debt as of 31st March is 261 crore of working capital lines. These are short term working capital lines which we generally use for the weekends and long weekends specifically. You’re right. We can fund it with our own cash also because our net own cash is about 434crores. However, not all of our cash, you know, has been available to us at all times. Like out of this, a good chunk of cash is still, you know, in the IPO proceeds and therefore not all of that cash is available to us as yet.
We do utilize the working capital lines very prudently. And if you can see the disclosure on the debt both on quarterly basis and annual basis, you know, has come down significantly from the previous financial year.
Unidentified Participant
Okay. And you have mentioned that that our margin business will scale 10x and then we will break even. So why it it has to scale 10x and then break even in between. Like 10x is a big number. Right. So why break even is taking it to scale 10x.
Bipin Preet Singh
Yeah. So look, I mean this is a, again it’s a more forward Looking longer term projection. But the thing is that what we are trying to say is that obviously you can break even earlier at a smaller scale, you know, and break even here, you know, means that actually it completely turns and it becomes profitable on its own. But if you continue to expand and invest where a lot of the cost comes in terms of how you are expanding the network, right, in terms of the number of people that you have on the ground running sales because it’s sales heavy and operations heavy, then if you are aiming for a certain scale until you reach that scale and stabilize that scale, then until then it becomes, it stays kind of in the negative territory.
But once you have reached that scale, which is what we are targeting, you know, then it just immediately is followed by, you know, stabilization of margins and breakeven. To give you an example, we could very well target 3x or 4x growth and breakeven much earlier. But again, if we get into the investment cycle again, it will, we will have to invest because basically the investment and the return on investment in terms of the margins and the revenue, there is a lag. We have taken this all that the right level to target is 10x.
And the reason we have taken this call is because we see enough execution, rigor that has been achieved in the business already and also the product and the competitiveness of our offering has reached a level where we can get to 10x without having to change anything else. And so we’ve taken this clear call.
Unidentified Participant
Okay, fair enough. My last question is regarding interest cost. So like we are profitable now, so we are generating some cash also. So can we expect that interest cost, interest cost to come down? Because it is a huge number which is our profitability.
Bipin Preet Singh
Yeah. So the interest cost, like Pasta is saying, coming from the working capital. And that working capital, you know, is a necessary evil in our business because you have to, you know, fund it with the, you know, bank based deadlines like say for example you have two days bank holidays, then the volume of settlements runs into hundreds of crores.
Upasana Rupkrishan Taku
Just to also explain that we are trying to bring it down. If you see that in quarter four, you know, the finance cost is 5.1 crore versus it was 7.2 crore in Q3. So we are definitely trying to bring down the finance cost.
Unidentified Participant
Okay, thank you.
Operator
Thank you. We will take the next question from the line of Sunil Jain from Nirmal Bank Securities Private Limited. Please go ahead.
Unidentified Participant
Yeah, thank you for taking my question. So you are venturing into this merchant acquisition process and all. So in next two year, how much Investment we need to make for that. And will that be routed through PNL or. In fact I think we had raised money in IPO for this particular object also. So will it be used from there?
Upasana Rupkrishan Taku
So yeah. Hi Sunil, As I mentioned, you know what we are doing is we are trying to generate margins from our scale businesses which are lending and consumer payments. And from that we are trying to reinvest into building the merchant payments business. We will continue investing into this for the next at least 18 months. We expect that investments will be required before these businesses start becoming close to break even. To answer your question, we did raise funds in the IPO proceeds also for this.
So we will be utilizing it from the IPO proceeds also. But in, in that case also it will hit the PNL because there is no concept of capitalization for these expenses.
Unidentified Participant
So you will be giving this sound box and all. So that will not be considered capital expenditure means that will be more of a subscription base you will be giving to the customers.
Upasana Rupkrishan Taku
So the devices piece we are depreciation, we are putting it in depreciation which you can see the depreciation costs are going up only. But only the device piece. But outside of that also there is investment in manpower, there is investment in the product that we are building. So outside of the device capitalization which goes into the depreciation cost, everything else is directly hitting the bnl.
Unidentified Participant
And can you quantify how much could be the investment?
Upasana Rupkrishan Taku
Yeah. For financial year 26 which we are just closing, we have mentioned that we have invested 55 crores. And had we not invested that, you know our EBITDA would not be negative 5 crores, you know, it would be positive 50 crores.
Unidentified Participant
Okay. And for coming here, any figure
Upasana Rupkrishan Taku
In similar range.
Unidentified Participant
Okay, fine, great. Thank you very much.
Operator
Thank you. Before we take the next question, a reminder to all. You May Press Star N1 to ask a question. We have the next question from the line of Ankush Agarwal from Search Capital. Please go ahead.
Ankush Agarwal
Yeah. Hi. Thank you for taking my question. So firstly I’m just trying to get a sense that last quarter we had this commentary that the fixed cost base is expected to settle between 105, 110 crores and that we are investing around 10, 15 crores. Like we are burning 10, 15 crores on the merchant business which we expect to sort of reach break even in 3, 4 quarters. But if I look at this quarter I think the fixed cost base has grown to like 120 crores. And the commentary now that we expect the merchant business to sort of reach breakthrough in FY28.
So just wanted to get a sense of what has changed and you know, what is driving this. At the same time, one of the commentary that you specifically mentioned in the presentation is that you expect to remain baseline profitable over next two years. So can you highlight what do you mean by this?
Upasana Rupkrishan Taku
Yeah. Hi. So actually these are two different questions. So firstly, yes, we are saying that we are making fixed costs increases on purpose to build the new businesses which I highlighted at the beginning of the call. And it’s also detailed out in our earnings presentation to qualify. If I tell you that in Q4 we have reported 117 crore in fixed costs which is about 4 crores higher than last quarter. And we’ve also mentioned that in this quarter we have taken the new wage code related hit which is almost 4 crore, 3.8 crore if I’m not wrong.
So the gap between Q3 and Q4, you know, is just that much, which is the new wage code related provision that we have taken. Now outside of that, when we are saying that we will be baseline profitable, what do I mean by that? What I mean is that we are generating profit margins from our baseline business of consumer payments and lending, which are our scale businesses. We are redeploying, reinvesting some of that and building the new businesses. And despite that, you know, despite making that investment, we have ensured that we are, you know, pat profitable for the quarter by 4.4 crores.
What we are trying to say is that in financial year 27 we will have these new businesses which will scale, which we want to new modes, new verticals. But those businesses also, as they scale their burn will keep going down and at all times we intend to be profitable, you know, at the bottom line. That is definitely our intention is what we are saying. Which means that same thing that I’m saying. This financial year, had I not invested in building a merchant payment business, I would have reported a 50 crore EBITDA instead of reporting a negative 5 crore EBITDA for the full financial year 26.
So I am trying to say that in exchange by 27, let’s say hypothetically I could have reached a 2x positive EBITDA. I may not reach 2x. I may reach x or x plus something because the balance between x and 2x I would have invested in continued investments in building these businesses so that in two years time they will also become 10, 20% of the revenue pie of the company.
Ankush Agarwal
Right, right. But so the broad stance would be that, I mean, I think to the earlier participants sort of mentioned that you expect similar kind of investment in the merchant business as FY26 going into FY27. So if that is going to the big case and the fact that you mentioned that as this business will expect them to sort of reduce the burn, ideally the profitability should see sharp improvement going ahead. Right. Despite these investments being there. Because the core business either way is substantially profitable, assuming that the fixed cost business can grow for that reason.
Upasana Rupkrishan Taku
Yeah, I think they’re both saying the same thing.
Ankush Agarwal
Okay, okay, maybe I have a different read of the volume.
Upasana Rupkrishan Taku
No, I’m trying to say that the core business will also scale up. The net new businesses will also start generating revenue. And as a result of that, we expect that the company’s overall revenue will grow while maintaining the current profitability, which is baseline profitability. You know, we are not reporting right now 10% fat, we are reporting 1% PAT. So that is what we are trying to say, that with a very moderate baseline profitability, we will further scale up the business, both existing businesses and net new businesses.
Ankush Agarwal
Got it. The second thing that I want to understand is in a payment business the GTV X of UPI is still not of 30%. This is the growth that we have seen for last many quarters. Obviously the revenue hasn’t been growing, but obviously the profitability has been improving. So except for UPI in the remaining business, are we seeing some sort of mix change into certain products which are sort of lesson revenue, higher margins? Because if The GPVX of UPI is still going in north of 30%, the revenue is not going but the profitability is going.
That means there should be something more than UPI that is driving this sort of change in the productness of the paper industry.
Bipin Preet Singh
So see basically what is not currently broken down fully and it is shown in some places, basically we have started making some revenue in the UPI business also in some parts. On the consumer side, even though the PPI over UPI MDR has not come. So once that comes, it will completely add on to that. But even on the bank UPI side, the 170% growth that happened over the last one year has started generating revenue in small amounts in different pockets. So as it scales that will directly flow into the bottom line of the company.
The other segment which is showing a lot of promise is bill payments. And in bill payments, you know, like Upasana mentioned, we’ve already reached a decent scale in terms of Bharat Bill payments. And there the revenue contribution is also picking up and we expect that in 12 months time both of these, both UPI as well as bill payments will start will be contributing significant amount to the growth of the revenue of consumer payments beyond what you see today.
Ankush Agarwal
I mean I get that but what I’m trying to understand is if the last 3, 4 quarters we are seeing extra few days GPV growth being say north of 30% ideally it should start reflecting in revenue growth right in the payments business. So that divergence something that is that I’m not able to understand because obviously the total GPB growth is much stronger because of UPenn assuming that UPI doesn’t make any revenue but even excluding that, I mean revenue being flat and you know exo up as GTV growth being north of 30% so that is not adding up honestly
Bipin Preet Singh
Also look, I mean there is been obviously moderation of the take rates in some of the existing business also that we have seen seen because of which you see the overall payments business the take rate, gross take rate has come down. At the net level we are still making money but at the gross level there is a mix that change that has happened thanks to UPI thanks to addition of some categories which don’t make as much money as possible. So that’s how much what I can tell you today. And so because of that you see that the revenue growth in the non UPI part is also, you know, not as much as we would have expected in the past.
Ankush Agarwal
Okay. Lastly, just any sense of what kind of fixed cost we can expect going ahead? Hello.
Unidentified Participant
Hi, I’ll just take this question. This is Soham from Mobiquit. So fixed costs right now we are on the 115 to 120 crore per quarter range. Now as the merchant business keeps growing obviously there will be increases in depreciation as well as we will also increase the people cost for further distribution of those devices so you can roughly assume 15 to 20% increase in fixed costs in the next year. Okay, thanks.
Operator
Thank you. A reminder to all, you may press star N1 to ask a question. We have the next question from the line of Smith Shah from GHP Securities. Please go ahead.
Smit Shah
Yeah, hi. So basically on the NBSC side from when can we start our own lending and how will we arrange for the funds for that particular lending?
Upasana Rupkrishan Taku
Yeah, hi Smith, this is Fasna. So on the NBFC side as we have detailed out in the earnings slides, also currently the dictate from the regulator is that we have to first move our existing digital lending LSP business to a wholly owned subsidiary of mobiquake which we intend to finish in the next two to three months post which we will start the NBFC setup work which we expect that if I count from today then you know, at least three to six months is the time frame in which the NBFC will be set up.
And after that in the six to nine month time frame is when I expect that we will launch the operations and start disbursals in the co lending model. So this is sort of the high level guidance that I can give and these are the steps that I just mentioned. First we have to move our existing business from the parent to a wholly owned subsidiary and only then we can start the NBSC operations in yet another wholly owned subsidiary. With regard to the capital allocation, because it’s a wholly owned new subsidiary of Mobiquik, we will be shortly going through the board and shareholder approval process to infuse funds into this entity.
Smit Shah
Okay, understood. And our digital credit GNB growth on a sequential basis has been subdued this quarter. What are the reasons for the same? Because on this base like diving single, like high single digit or 10% kind of frequently growth wouldn’t be too difficult. So what were the reasons for the subdued growth?
Upasana Rupkrishan Taku
Yes, with the high level answer to that is that we are prioritizing quality and profitability over volume. So like I mentioned, you know we have increased our loans to repeat customers from about 20% to 63%. We have also increased our loans to the super prime users which used to be 10% of the disbursal to now 32%. So we are moving a lot of our lending focus towards prime and super prime customers. And of course we have about 20% near prime customers also. And therefore the larger point I want to make is that the portfolio is tilting towards repeat and super prime cohorts and we will be continuing to grow in this manner where the focus is more on higher quality book resulting in higher net margins instead of just focusing on higher disbursals.
Smit Shah
Okay, understood. And FY26 digital graded GMV stands at roughly around 3200 odd crores. What should be the growth rate in FY27?
Upasana Rupkrishan Taku
I think broadly 30, 35% is what you know you can assume.
Smit Shah
Okay, and can you guide on the like a broad EBITDA margin range for FY27.
Upasana Rupkrishan Taku
Similar to the 5% range that we are at.
Smit Shah
Okay, understood, understood. Thank you so much. That’s it from my side.
Upasana Rupkrishan Taku
Just to clarify Smith, we are saying that we will make better margins but we will be making more investments and therefore the net EBITDA margin that will be reported will be in the same broad range of 5% where we are.
Operator
Thank you. A reminder to all, you may press star N1 to ask a question. We will take the next question from the line of Shloka Kolia from Xylem Investments. Please go ahead. Shloka, you may proceed with the question. Due to no response, we will take the next participant. We have the next question from the line of Divyansh Thakur from Penindras Capital. Please go ahead.
Ankush Agarwal
Hello. Am I audible?
Operator
Yes, you are audible. Please proceed.
Ankush Agarwal
Congratulations on a great set
Unidentified Participant
Of numbers. So actually I had the same question and I was not able to get the answer. So why are we not using our CAT and using the short term facilities for the loan to meet our working capital requirements? I mean the answer. Hi, I’ll take the answer. So effectively what we are saying is out of the total unencumbered cash, significant portion of it is still part of our IPO proceeds which we do not have access to yet. The IPO proceeds keep trickling in as and when they are used. Secondly, the working capital is required more so to fund during the weekends when two to three days.
We do not get the funds from the banks but we have to make the payments to the merchants and our customers. So in those days the usage is more which typically tends to be higher than our remaining cash. Hence our working capital requirement there helps us to maintain the balances. But nevertheless we have tried to ensure that we keep this working capital under check. So if you see our payments, GMV has exploded. It has grown multifold. But our working capital has remained stable over this period.
Upasana Rupkrishan Taku
Actually it has come down from Q3 7.2 crore. In Q4 it has come down to 5 crore in terms of finance cost.
Rahul Jain
Okay, got it. Thanks. And all the best for the future.
Operator
Thank you. A reminder to all the participants, you may press Star and one to ask a question. We have the next question from the line of Shloka Kolia from Dylan Investments. Please go ahead.
Unidentified Participant
Good evening, ma’. Am. So first of all, congratulations on a strong set of numbers. Ma’, am, I have two questions. First for the FY27 and 28, what is the revenue growth trajectory that we anticipate for our payments business as well as lending business? And on another question, around the sustainability of our margin, like our lending spreads are at 5.4%. Is that sustainable? So I think we had guided that four to four and a half percent was a sweet spot for us. So around that there’s Some guidances.
Upasana Rupkrishan Taku
Yeah. Hi Shlok, thanks for asking the question. So we do expect that our GMV growth will be in the range of 30 to 35% in both of our businesses, payments and lending. In terms of the lending margin, we have shown that the performance of the cohorts is coming stronger where you know, 35% lower credit cost is coming on the maturing portfolio. And we also have some, you know, previously matured cohorts from which we are getting gains due to superb collection effort. Given all of these, you know, we have landed at the 5%, 5.3% margin.
But from a long term perspective, you know, we are not guiding 5%. We are comfortable with the 4% range. We do believe that that is the sweet spot. I think that we have done well and we have collected deferred revenue also from previously maturing portfolios. But I am not sure whether we can commit long term that we’ll be able to deliver these margins. I think four and a half percent still sounds more sustainable.
Unidentified Participant
Okay. And ma’, am, just around payments margin is the 16 basis points workable number for next two to three years.
Upasana Rupkrishan Taku
So you know, from my perspective, I would have loved to say that but of course it’s not in my control. As you know that India is a very healthily regulated market and we have various licenses also in the payments business. So the various regulatory changes can impact that. Which is why from a longer mid to long term perspective we are guiding 12 to 15 basis points even though every quarter so far we have been doing better than that. But I don’t think for a two year time frame I would recommend for 16 basis points because we really can’t tell if and when any regulatory change could, you know, change that.
Therefore we always recommend a more conservative approach.
Unidentified Participant
Okay, thank you. And all the rest for the next quarter.
Operator
Thank you. We have the next follow up question from the line of Smithshaw from GHP securities. Please go ahead.
Smit Shah
Yeah, so this merchant partners currently are 4.9 million. Where do you see the merchant partner number going in FY28? Like this year we grew at a mere 7%. So like now we are going to aggressively onboard a lot of merchants. So where do you see this number in FY28?
Bipin Preet Singh
So we are not, you know, obsessing about the number of merchants. I think what we are looking at is we have looked at our offline merchants partners in terms of different categories, especially three different categories. One is the organized retail. Second is petrol and third is small mom and pop stores. Our aim is that you know, we get to like maybe between 10 to 20% of the market leader size in the next 18 to 24 months or perhaps before that. And with that view we are investing and building this business.
Smit Shah
Okay, understood. Yeah, that’s it from my side. Thank you so much and all the best.
Operator
Thank you. A reminder to all the participants, you may press star N1 to ask a question at this moment. A reminder to all, Just press star and one to ask a question. We have the next question from the line of Rahul Jain from Dalit Capital. Please go ahead.
Rahul Jain
Yeah, hi. Thanks for the opportunity. Basically I want to understand on your strategy, on the merchant acquisition side, we have this goal of increasing our Zakpay revenue meaningfully. And also on the offline side of it, if you could explain what kind of investment that would entail, what could be the easy picking relatively for us to have that kind of a growth potential? Is it more like reviving the same customer is led by more customer acquisition? Any color on those factors would help. Thank you.
Bipin Preet Singh
So thanks Rahul for the great question. So what we are doing is both the merchant side, both on the online and as well as offline side. Obviously the businesses have become very, very big in the market. I mean, and so what we are looking at is identifying specific categories within which we will try to gain a meaningful share of the market. And so for example, in the offline space our business is divided into three categories. One is small mom and pop stores, second is oil and gas and third is organized which is basically, you know, mid market and above.
We are not necessarily focusing too much on enterprise. In at least two out of the three categories we are focusing and identified that combined with the better product experience, experience end to end and great service, we can get to 10 to 20% market share or at least 10 to 20% of the market leader size in the 18 to 24 month mark. And with that aim we are investing in this business. On the online piece Zagpay again we have identified few categories. We have identified for example education as a great category.
We have identified, you know, government as a great category. And then some of these categories are really, really very big. And even a double digit share percentage share in these markets will easily help us reach the goals of 10x that we are targeting for the next 18 months. And so BBPS is another category in the BAAD Bill Bearman system where our PA or the online pack pay is going to be particularly relevant is a category that we are scaling very rapidly. So because our scale is less right now, so for us to get to 10x in the next 18 to 24 months looks doable by just identifying the right categories and investing and going deep into it.
Rahul Jain
Sure. And one question on the lending side of the business since now we have this NBFC route also to tap into this opportunity. So is there a change in strategy on the LSP side of the business or that remain as is and this could be an incremental thing and is there any kind of a conflict of interest that we need to identify on the user acquisition side or we just become one of the another lending partner and everything looks same from an LSP point of view.
Bipin Preet Singh
Yeah. So look, I mean from an regulator point of view you have to ring fence the businesses. And so therefore as you know, NBFC has been received in one of the subsidiaries and the LSP business is being migrated to another subsidiary. So the whole co which is one Mobiquik will not have any LSP business or will not have any NBFC business. These businesses will sit separately in two subsidiaries, you know and they will have all have basically agreements with each other on how the sourcing of customers is there or how the billing of customers and revenue happens.
So this is all how it will be set up as far as the NBFC is concerned. Look, LSP is still likely regulated but NBFC the regulator expects proper governance, proper compliance, especially as you become bigger. So therefore we expect that these companies will with their management will be operating independently in their interest and in the interest of the Holdco which is one more be quick with their own individual managements. So I hope that answers
Upasana Rupkrishan Taku
Just last piece which you didn’t answer Vipin is that Rahul, we expect that the LSP will continue in the similar fashion in the wholly owned subsidiary and the business generated from the lsp sorry from the NBFC will be incremental to the business that we are already doing as an lsp. So
Bipin Preet Singh
NBFC will be one of the partners for the lsp. It doesn’t mean that other lending partners will obviously go away.
Rahul Jain
Sure, sure. Just one further product into the point you raised within that since both of the both of the business would work in their own interest. So the customer acquisition side of the NBFC will completely rely on the on the app or they might find business opportunity outside the one Mobiquick app. This level of
Bipin Preet Singh
Detail we haven’t figured out. But you know we have to expect that NBSC will be built as a its own independent company which initially obviously will work with Mobiquik but eventually if it follows its own independent trajectory, we’ll be able to work in the market openly.
Rahul Jain
Sure. Thanks for the color and best wishes for so many new things that you are working upon. Thank you.
Bipin Preet Singh
Thank
Rahul Jain
You.
Operator
Thank you. Then we take the next question from the line of Ankush Agarwal from Search Capital. Please go ahead.
Ankush Agarwal
Thank you for the opportunity again. So just two quick clarification. On the merchant side when you sort of give a sense that you know you will be investing for 50, 60 crores or whatever that amount will be, is it just the OPEX or it also includes the capital investment in the devices.
Upasana Rupkrishan Taku
So this is just the OPEX we are talking about.
Ankush Agarwal
Okay. Okay. And secondly on the lending business, the medium to long run, what would be the say targeted split between the NBSCPs and the, you know, the pure distribution sort of mix? Any sense?
Upasana Rupkrishan Taku
I think it is too soon to say right now we have to first set it up and launch it maybe in a couple of quarters. You can ask the this question
Ankush Agarwal
Because I mean the sense is that since you have taken this decision of starting an nbsp, you would have some idea, you know, this is how much bridge actually because if it’s going to be just 10, 20, then ideally the kind of investment and the infrastructure that is needed and compliance that is needed for an NBSP might not really make that much sense. So this was trying to get a sense that, you know, you might have some bigger plans to go ahead with this.
Upasana Rupkrishan Taku
We may have, but I think it is too soon to reveal. So first we want to reveal that we have completed the setup. Then we will talk about how we will deploy it to grow the company overall.
Unidentified Participant
Thank you.
Operator
Thank you. We will take the next follow up question from the line of Shlok Akolia from Xylem Investments. Please go ahead.
Unidentified Participant
Yeah, so I had a follow up on the previous question. So we wanted to understand what are the target unit economics for the merchant business side and also how are we tracking the efficiencies of our investments in the merchant business till now. Like are there any signs of early events as they’ve already invested about 50 crores in there.
Upasana Rupkrishan Taku
So I think that this is the first quarter where we have actually broken down and given some level of detail in terms of the various subcategories within payments, whether it is bill payments, whether it is merchant payments, etc. I think in the coming quarters we will be revealing more. But needless to say we have revealed it as a growth engine. So you should be assured that the management is looking at it with a whole. And we have also we would also like to mention that the investments that we have already made are panning out in terms of certain growth KPIs and we will start disclosing them in the rightful manner in the upcoming quarters.
But one should be clear that especially on merchant payments also transactions you know don’t generate mdr. It is a credit on UPI Rails or the rupee credit card transactions that generate the MDR and then there is a device rentals and then after there is a strong merchant engagement then one can build the merchant credit pipe also. So that is the long term build out of the economics from a merchant business perspective.
Unidentified Participant
I am looking forward to the next. Thank you.
Upasana Rupkrishan Taku
Thank you so much.
Operator
Thank you very much ladies and gentlemen. We will take that as the last question and with that concludes the question and answer session. I now hand the conference back to the management for closing comments. Thank you and over to you.
Upasana Rupkrishan Taku
Thank you so much for hosting us, Rahul and the Dollars Capital team. And thank you to all the participants who actively engaged with us in understanding how Mobiquik is building the future of fintech in India. Thank you. Have a good evening.
Operator
Thank you members of the management, on behalf of Daulat Capital. That concludes this conference. Thank you all for joining with us today and you may now disconnect your lines. Thank you.