Mohalla Tech reported a 78.5% year-over-year rise in net loss to ₹1,978.4 crore for FY26, even as its operating revenue grew 40.4% to ₹1,016.3 crore, driven largely by its subscription-based QuickTV platform and increasing live-streaming revenue.
- FY26 net loss rose 78.5% to ₹1,978.4 Cr amid higher expenses
- Revenue crossed ₹1,000 Cr driven by subscription and livestreaming
- First EBITDA positive quarter recorded in Q1 FY27
What happened
Mohalla Tech, the parent company behind popular Indian social media apps ShareChat and Moj, reported a consolidated net loss of ₹1,978.4 crore for the financial year ending March 2026, marking a 78.5% increase year-over-year. This surge in losses was attributed primarily to higher share-based payment costs, foreign exchange losses, and finance expenses. Meanwhile, the company’s operating revenue grew by 40.4% to ₹1,016.3 crore from ₹723.4 crore in the previous fiscal year.
The revenue growth was led by the launch and adoption of QuickTV, a subscription-based microdrama platform introduced in February 2025. The subscription segment, including QuickTV and Moj’s offerings, contributed almost 30% to the total revenue in FY26, generating ₹292.7 crore. However, advertising revenue declined 13% year-over-year to ₹251.8 crore, impacted by the pullback of real money gaming advertisers, while the live-streaming segment grew by nearly 9% to ₹471.8 crore.
Why it matters
Mohalla Tech’s fiscal performance highlights the evolving monetization strategies of Indian social media platforms. The shift towards subscription-driven revenue through microdrama content demonstrates potential for diversifying income streams beyond traditional advertising, especially amid regulatory and market challenges impacting ad spends from sectors like real money gaming.
Notably, the company’s operational improvements also signal progress, as indicated by a 58% reduction in EBITDA losses in FY26 and its first EBITDA-positive quarter in Q1 FY27. These milestones suggest Mohalla Tech’s efforts to balance growth and profitability, essential in the competitive Indian digital entertainment landscape where content formats like microdrama are gaining rapid traction.
What to watch next
Looking ahead, Mohalla Tech aims to achieve an EBITDA profit of ₹25 crore in FY27, driven by growth in both subscription video on demand (SVOD) and advertising-based video on demand (AVOD). The company expects a 40% year-over-year increase in advertising revenue, seeking to surpass ₹350 crore on that front, and is focused on strengthening the monetization of microdrama content despite challenges in scaling the paying user base.
Industry observers should watch how quickly Mohalla Tech can expand its subscriber base and advertising revenue amid evolving consumer preferences and advertiser behavior. Additionally, the broader microdrama market in India is heating up, with companies like EloElo Group raising significant capital to develop original content and advanced production tools, making this a competitive space to monitor for innovation and market leadership.