This article first appeared on GuruFocus .
Release Date: May 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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OnMobile Global Ltd ( BOM:532944 ) reported a significant EBITDA growth of 110% for the year, driven by cost optimizations across HR, OpEx, and marketing.
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The subscription gaming segment saw a 32% year-over-year growth, with the subscriber base increasing by 600,000 in the last quarter.
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The company is launching a new virtual console in partnership with Flipkart, which is expected to expand their market reach significantly.
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OnMobile Global Ltd ( BOM:532944 ) has secured new lines of business with products like Bazmo and gaming platforms, contributing to future growth.
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The company has a strong cash position with a gross cash of 142 crores, indicating financial stability and capacity for future investments.
Negative Points
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Revenue declined by 15% this quarter, attributed to the cessation of campaigns with top five customers, although these have now restarted.
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The mobile gaming segment experienced a 25.4% year-over-year decline, impacting overall revenue performance.
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The company reported a negative profit after tax of 11 crores, although excluding impairment provisions, the profit stood at 35.3 crores.
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There is a concern about lower ARPU and conversion rates with new accounts, affecting immediate revenue growth.
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The launch of the virtual console took longer than planned, indicating potential operational challenges in aligning with large partners like Flipkart.
Q & A Highlights
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Q: Do you have any plans to bundle sale plans for your consoles with any new mobile device launches? A: We have planned to launch bundles, but the speed at which mobile operators move is slower compared to other retailers or e-commerce providers like Flipkart. We are exploring various discussions on many fronts, including upsells through platforms like Flipkart.
Q: Why did you wait until 40 crores for taking the impairment as a going concern? A: We didn't wait; this is a provision. We are still in negotiation, and all options are on the table. As we settle, it will come back as a positive. The provision was necessary because it's over 365 days.
Q: Regarding the new console launch, what are the internal thresholds in terms of working capital? A: We have managed to finance most of the working capital through leasing companies for servers and controllers. While there are costs for content and team operations, the majority of the working capital required is leased.
Q: What is the reason behind the other income of roughly 50 crores this financial year? A: The other income of 44 crores is a combination of exchange gain and interest on income tax refunds. The income tax refund was higher, and only the interest portion is considered here.
Q: With the appointment of Leo Matthew as an independent director, how will his expertise influence the product roadmap for Onmo and Challenges Arena? A: Leo brings direct expertise in gaming, particularly for the Virtual Console. He has dealt with key AAA game developers and will be instrumental in securing deals with them. His experience with major gaming entities like Xbox and Meta will be invaluable.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
