Mobikwik stock rebounds 54% from record low in 3 days on heavy volumes

Till 11:51 AM; a combined equity shares worth of Rs 1,398 crore changed hands on the NSE and BSE in today's trading session, the exchange data shows.

Shares of One Mobikwik Systems, the parent company of payments solutions provider MobiKwik, zoomed 19 per cent to Rs 355 on the BSE in Wednesday’s intra-day trade on the back of heavy volumes. The stock of Fintech Company had zoomed 20 per cent on Tuesday. 

 

With the past 2-day rally, the market price of Mobikwik has recovered 54 per cent from its record low of Rs 231.05 touched on Monday, March 17, 2025.

 

At 11:51 AM; Mobikwik was quoting 14 per cent higher at Rs 338.70, as compared to 0.16 per cent gain in the BSE Sensex. The average trading volumes at the counter jumped over 5-fold today. A combined 42.08 million equity shares representing 54 per cent of total equity of the company changed hands on the NSE and BSE. A combined equity shares worth of Rs 1,398 crore changed hands, the exchange data shows. Currently, Mobikwik’s market capitalisation stood at Rs 2,634 crore.

 

 

Meanwhile, on Monday, Mobikwik's shares witnessed its worst performance since listing on Dalal Street, plunging nearly 15 per cent following the expiration of the final lock-in period. The stock fell below its issue price of Rs 279 per share. The company made its stock market debut on December 18, 2024. The stock had hit a record high of Rs 698.30 on December 26, 2024.

 

However, it is important to note that the expiry of the lock-in period does not necessarily imply that all these shares will be sold in the open market; it only allows them to be traded.

 

Mobikwik’s sharp decline was driven by both technical and fundamental factors. The anchor lock-in expiry triggered selling pressure, while the resignation of Chandan Joshi adds to leadership uncertainty. The company’s credit business has contracted sharply, impacted by the Reserve Bank of India (RBI) guidelines that have constrained lending supply, said Abhishek Jaiswal, Fund Manager at Finavenue.

 

Additionally, its positioning in the UPI ecosystem limits potential gains from Merchant Discount Rates (MDRs). With a projected Gross Merchandise Value (GMV) of Rs 30,000 crore for FY25, even an optimistic 1 per cent MDR across all transactions would yield Rs 300 crore, though actual revenues could be significantly lower. Institutional selling post-results reflects these structural and regulatory challenges, keeping sentiment weak, said Abhishek Jaiswal.

 

Meanwhile, since February, the stock price of Mobikwik has declined 17 per cent after the company reported a consolidated loss of Rs 55.2 crore in the third quarter of Financial Year 2025 (Q3FY25), as against a net profit of Rs 5.27 crore the same quarter last year. Sequentially, the fintech company made a loss of Rs 3.59 crore in Q2FY24.

 

Revenue from operations grew 17.7 per cent year-on-year from Rs 228.93 crore in Q3FY24 to Rs 269.47 crore in Q3FY25. However, on sequentially revenue declined 7.3 percent from Rs 290.64 crore in Q2FY25. Contribution margin remained muted in Q3FY25, declining to 26.6 per cent from 37.7 per cent in Q3FY24 and 40.2 per cent in Q2FY25.

 

The company attributed the decline to lower financial services revenue and higher lending costs due to a transition to new default loss guarantee (DLG) contracts. It said a larger portion of such costs are incurred in the initial period of a contract.

 

However, the management said fixed cost in Q3 was in line with what they were in Q2. “We will continue to further optimize them even as we scale our businesses so that operating leverage will eventually kick in. We will bounce back in the distribution of financial products, we will launch the new insurance and savings businesses,” the management said in Q3 earnings conference call.