Synopsis:
OnMobile Global shares jumped sharply after reporting a sharp turnaround to profitability from continuous losses. It set a bold ambition of hitting 17.49 crore from mobile subscription revenue, which currently stands at 11.69 crore.
The shares of this leading mobile gaming company are in focus after reporting a robust financial performance in this quarter with a strong growth outlook. In this article, we will dive more into the details.
With a market capitalization of Rs 648 crore, the shares of OnMobile Global Ltd made a day high of Rs 61.50, up by 14.2 percent from its previous day closing price of Rs 53.85 per share. Over the past five years, the stock has delivered a return of 62 percent.
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Q1 Highlights
OnMobile Global’s revenue for Q1 FY26 came in at Rs 125 crore, registering a mere 1 percent growth from Rs 124 crore in the same quarter last year. However, on a sequential basis, revenue declined by 20 percent from Rs 156 crore in Q4 FY25.
EBITDA for Q1 FY26 came in at Rs 6.5 crore, registering a staggering 639 percent growth from Rs 0.9 crore in the same quarter last year. Additionally, on a sequential basis, EBITDA grew by 91 percent from Rs 3.4 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit of Rs 15.6 crore in Q1 FY26, as compared to the same quarter of the previous year loss of Rs 15.3 crore. Additionally, it reported a loss of Rs 8 crore in its previous quarter as well.
From its Gross Revenue of Rs 127.6 crore, 47 percent of its revenue is derived from the Videos & Info segment, followed by Mobile Gaming with 25 percent, and the rest 28 percent from its Tones segment.
The main reasons for the company to report a sharp turnaround to profitability this quarter from losses are mainly attributed to lower expenses and higher net profit margins.
EBITDA margins expanded by a staggering 450 bps to 5.2 percent in Q1 FY26, and also expanded by 300 bps from its previous quarter margins. Marketing (as a percentage of Revenue) also declined significantly during the same period. Operating and manpower costs declined by 100 bps each during the period as to last year.
Its active subscribers grew by 58 percent to 1.2 crore in Q1 FY26 from 0.76 crore in Q1 FY26, and also grew by 13 percent from its previous quarter subscription base of 1 crore.
The company cited that its gaming subscription revenues, which reached Rs 11.6 crore in June FY26, are expected to grow by 50 percent in FY26, targeting Rs 17.49 crore in the next 12 months. The platform business is also projected to be a key growth driver in the next financial year.
OnMobile Global, the leader in cutting-edge mobile gaming and entertainment, is headquartered in Bangalore, India, with its presence in 69 countries across the globe. OnMobile is focused on building customer-first Mobile Gaming products while offering a wide array of digital products such as Videos, Tones, & Contests. Based on current deployments, OnMobile has over 126 customers and over 69.8 million monthly users globally.
Written by Satyajeet Mukherjee
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