Smallcap stock skyrockets 20% after receiving RBI approval for NBFC licence

Synopsis: One MobiKwik Systems Limited received RBI approval for NBFC, enabling faster lending, new credit products, improved margins, and stronger financial inclusion across underserved regions in India.

This small-cap stock, engaged in providing digital payment services, mobile wallets, UPI transactions, credit solutions, and financial products to consumers and merchants across India through its platform, jumped 19.97 percent after receiving an NBFC License approval from the Reserve Bank of India.

With a market capitalization of Rs. 1,826.54 crores, the share of One Mobikwik Systems Limited has reached an intraday high of Rs. 243 per equity share, rising nearly 19.97 percent from its previous day’s close price of Rs. 202.55. Since then, the stock has retreated and is currently trading at Rs. 232.30 per equity share. 

Reason Behind the Surge

One MobiKwik Systems Ltd. has received approval from the Reserve Bank of India to set up a Non-Banking Financial Company (NBFC). This is an important step for the company as it will help expand its financial services and strengthen its position as a fintech platform. The company will start a new lending arm called MobiKwik Financial Services Private Limited, which will focus on offering loans to customers and businesses.

With this NBFC, MobiKwik will be able to launch new credit products faster and manage lending more efficiently. It will offer both secured and unsecured loans to consumers and small businesses, especially in Tier 2 and Tier 3 cities. The company will also use its strong technology, data, and AI systems to provide better and more personalized financial solutions.

This move will also help MobiKwik improve its lending margins and access stable funding through co-lending models. Overall, it supports the company’s goal of increasing financial inclusion and reaching more people across India.

Business Highlights

One MobiKwik Systems Ltd. continues to grow strongly in India’s digital payments space, serving over 186.6 million users and more than 4.79 million merchants. The company is one of the leading digital wallets in India, ranking first in wallet services and seventh in bill payments. It is also among the top five fastest-growing UPI apps, showing its strong position and rapid growth in the market.

UPI Transactions Growth

One MobiKwik Systems Limited has shown strong growth in customer-initiated UPI transactions. The number of transactions increased from 54.09 million in Q3 FY25 to 77.65 million in Q4 FY25 and reached 100.05 million in Q1 FY26. This upward trend continued with 138.26 million in Q2 FY26 and 172.9 million in Q3 FY26.

Overall, this represents a 3.2 times year-on-year growth. With a 220 percent YoY increase, much higher than the industry growth of 29 percent, MobiKwik is now among the top five fastest-growing UPI apps in India.

Company Overview

One MobiKwik Systems Limited was established in 2009 and is based in Gurugram, India. It is a leading fintech company that provides digital financial services through its MobiKwik app. The platform offers services like mobile wallets, UPI payments, bill payments, recharges, and solutions for merchants, serving a large number of users and businesses across the country.

The company also provides financial products such as Zip buy-now-pay-later, personal loans, and insurance. It uses technology like AI and data analytics to make transactions smooth and easy. MobiKwik aims to improve financial inclusion by reaching both urban and rural customers with simple and innovative payment solutions.

Recent Quarter Results

Coming into financial highlights, One Mobikwik Systems Limited’s revenue has increased from Rs. 269.48 crore in Q3 FY25 to Rs. 288.95 crore in Q3 FY26, which has grown by 7.22 percent. The company’s net profit has shifted from negative to positive, from a net loss of Rs. 55.28 crore in Q3 FY25 to a net profit of Rs. 4.05 crore in Q3 FY26.

One Mobikwik Systems Limited’s revenue has grown at a CAGR of 30.45 percent over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at -14.6 percent and -32.4 percent, respectively. One Mobikwik Systems Limited has an earnings per share (EPS) of Rs. -15.7, and its debt-to-equity ratio is 0.65x.

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