Mohalla Tech, the parent company behind ShareChat and Moj, disclosed a 78.5% year-on-year expansion in its consolidated net loss to ₹1,978.4 crore for the fiscal year ending March 2026, according to Inc42. This deterioration in bottom-line results occurred alongside a 40.4% surge in operating revenue, which climbed to ₹1,016.3 crore from ₹723.4 crore in the prior year. The company’s total outlays jumped 65.6% to ₹3,083 crore, primarily due to increased share-based compensation, foreign exchange impacts, and finance charges.
The widening deficit was largely attributable to non-cash and notional accounting entries. Employee benefit costs more than doubled to ₹959.5 crore, with share-based payments rising 302% to ₹739 crore after the firm expanded its ESOP pool and granted additional shares to key staff. Foreign exchange losses, driven by rupee-dollar depreciation, increased over fourfold to ₹566.9 crore, while business development expenses, covering marketing and customer acquisition, surged 7.7 times to ₹334.8 crore.
Despite the net loss, the startup noted an improvement in operating performance, reducing its EBITDA deficit by 58% to ₹91 crore. The firm recorded its first EBITDA-positive quarter in the June quarter of FY27, posting a profit of ₹9.5 crore. Management indicated that the EBITDA margin improved to over 2% in the September quarter of FY27. This operational shift was supported by the launch of QuickTV, a subscription-based microdrama platform introduced in February 2025.
Subscription income from QuickTV and Moj’s paid tiers contributed ₹292.7 crore in FY26, representing nearly 30% of the top line. This growth helped mitigate a 13% year-on-year drop in advertising revenue, which fell to ₹251.8 crore as real money gaming advertisers cut promotional spending. Meanwhile, livestreaming revenue grew by 9% to ₹471.8 crore. For FY27, Mohalla Tech aims for an EBITDA profit of ₹25 crore, expecting advertising revenue to rise by 40% year-on-year.