ONMOBILE - OnMobile Global

📊 NSE: ONMOBILE 🏢 Telecommunications - Service Provider 📅 Last Updated: 12/14/2025 10:43

💰 Financial Performance

Revenue Growth by Segment

Mobile Gaming revenue grew 12% QoQ to INR 35.5 Cr in Q2 FY26, while legacy segments (RBT and Video) saw a decline, dropping from 85% of total revenue in FY24 to 55% in Q3 FY25. Overall gross revenue for Q2 FY26 was INR 131 Cr, a 2.7% increase QoQ but a 0.7% decrease YoY.

Geographic Revenue Split

The company operates in 69 countries across emerging and developed markets, though specific percentage splits per region are not disclosed; revenue is recognized through sharing arrangements with 122 telecom operators globally.

Profitability Margins

Operating margins have been volatile, falling to -0.27% in March 2025 from 4.51% in March 2024 due to high fixed costs. However, Q2 FY26 showed recovery with a gross profit margin of 55.2% and an operating profit of INR 0.2 Cr compared to a loss of INR 1.7 Cr in Q1 FY26.

EBITDA Margin

EBITDA margin improved significantly to 6.7% in Q2 FY26 (INR 8.6 Cr) from 1.4% in Q2 FY25 (INR 1.8 Cr), representing a 377.8% YoY increase driven by cost discipline and a healthier revenue mix.

Capital Expenditure

The company has no large debt-funded capital expenditure plans over the medium term; however, it invested significantly in software and licenses, which cost INR 81.45 Cr in FY25, a 492% increase from INR 13.75 Cr in FY24.

Credit Rating & Borrowing

CRISIL maintains a 'Negative' outlook due to modest operating margins. The financial risk profile is supported by low reliance on external debt, with a Total Outside Liabilities to Adjusted Networth (TOL/ANW) ratio below 0.55 times.

⚙️ Operational Drivers

Raw Materials

The primary 'raw' costs are Content Fees and Royalties (39.05% of revenue), Software Licenses (14.08% of revenue), and Employee Benefits (20.47% of revenue).

Import Sources

Not specifically disclosed, but software and content are sourced globally to support operations in 69 countries.

Key Suppliers

Not disclosed in available documents; however, the company partners with 122 telecom operators for distribution.

Capacity Expansion

Current gaming subscriber base reached 13.7 million in Q2 FY26, a 14% increase QoQ. The company is expanding its platform to reach 4 billion+ mobile consumers through 100+ Telco partnerships.

Raw Material Costs

Content fees and royalties decreased 4% YoY to INR 225.8 Cr in FY25. Software license costs surged 492% to INR 81.45 Cr, significantly impacting the business risk profile.

Manufacturing Efficiency

Efficiency is measured by capacity utilization and cost discipline; EBITDA rose in Q2 FY26 due to improved operating efficiency and a better revenue mix.

Logistics & Distribution

Distribution is entirely digital via telecom operator networks; marketing expenses (INR 23.2 Cr in Q2 FY26) act as the primary driver for customer acquisition.

📈 Strategic Growth

Expected Growth Rate

14%

Growth Strategy

The company aims to achieve growth by increasing the gaming segment's revenue contribution to over 50% of the total mix. This involves scaling the gaming subscriber base (currently 13.7 million), leveraging 100+ established Telco partnerships, and deploying unique IPs and patents to disrupt the mobile gaming industry.

Products & Services

Mobile Gaming (Challenges, ONMO), Ring Back Tones (RBT), Video Streaming, Tones, and Contests.

Brand Portfolio

OnMobile, ONMO (mobile gaming platform).

New Products/Services

Mobile gaming platform expansion is expected to be the primary growth driver next fiscal, targeting a Monthly Recurring Revenue (MRR) increase from $1.3M to $2M.

Market Expansion

Targeting 4 billion+ mobile consumers not prioritized by top gaming players through existing global telco deployments.

Market Share & Ranking

Leader in mobile gaming and entertainment with a presence in 69 countries and 65.93 million total monthly subscribers.

Strategic Alliances

Maintains partnerships with 122 telecom operators globally; specific JV partner names were not disclosed.

🌍 External Factors

Industry Trends

The mobile gaming industry is growing but highly fragmented and technology-driven. OnMobile is positioning itself to capture the 'unprioritized' 4 billion telco consumers by shifting away from declining legacy RBT services.

Competitive Landscape

Intense competition from numerous players across mobile platforms constrains bargaining power and necessitates high marketing spend.

Competitive Moat

Moat is based on 20+ years of relationships with telecom operators and unique gaming IPs. Sustainability depends on avoiding technology obsolescence through continuous investment.

Macro Economic Sensitivity

High fixed costs (employee and royalty) expose the company to economic downturns; a revenue decline directly impacts profitability due to the inability to scale costs down quickly.

Consumer Behavior

Shift in consumer preference from traditional Ring Back Tones to interactive mobile gaming and video content.

Geopolitical Risks

Operations in 69 countries, including regions like Mali, Venezuela, and Bangladesh, expose the company to local regulatory changes and geopolitical instability.

⚖️ Regulatory & Governance

Industry Regulations

Subject to various global telecom and data regulations; adverse regulatory changes in any of the 69 operating countries could impact the business risk profile.