Mohalla Tech Eyes Profitability as Revenue Up By 40%: Key Takeaways

Mohalla Tech, the parent company that operates ShareChat, Moj, and Quick TV, is expecting to close F27 as its first fully profitable year at an EBITDA of nearly INR 25 crore. 

The confidence comes on the back of an impressive 40% revenue growth (year-over-year) in operating revenue to INR 1,016 crore, up from INR 723 crore in FY25. Moreover, revenue grew substantially in FY26, growth accelerated further in FY27, reaching an ARR of over INR 1,500 crore by the end of first half.

“After a few years of strategic discipline, we have turned the corner in our path to profitability. A year ago, we had achieved the mission of building a sustainable core business and were shifting gears to accelerate growth. Now, we are EBITDA positive, generating cash, and funding the next phase of growth entirely from our own cash flows,” Ankush Sachdeva, Co-founder and CEO, Mohalla Tech, said in a statement.

The FY27 is also crucial for Mohalla Tech as it also has a USD 400 million IPO in the pipeline. The public litmus test will need the company to see not a one-off profitable year but a multi-year trajectory for its business model. 

Road to Profitability

The FY26 earnings reflect the turnaround the company had claimed a while back. And as mentioned above, it’s expecting better numbers in the current fiscal (FY27). 

Just to put things in perspective, in FY25, ShareChat reported a moderate growth to post INR 723 crore revenue, registering a marginal year-on-year increase as compared to INR 718 crore in FY24. Its adjusted EBITDA losses reduced 72 percent to INR 219 crore.

In FY26, the operating revenue crossed INR 1,000 crore with EBITDA losses shrinking to INR 91 crore. 

Announcing the earnings report, ShareChat cofounder and CFO Manohar Charan said that the company achieved cash flow break-even in the middle of FY26. 

In the first quarter of FY27, it was the company’s first ever quarter of EBITDA positive for the company. The following quarter ending September 2026, the EBITDA margin improved from 0.3 percent to 2% (consequential quarters). 

Cumulatively, the company has achieved nearly INR 9.5 crore EBITDA positivity thus far, and it’s aiming for another INR 15 crore from remaining quarters. 

From a revenue point of view, the company has done INR 740 crore in the first of the current quarter, and is confident of more than doubling it up in the second half. Run-rate wise basis the steam picked from Q2 FY27, it’s already at INR 1,500 crore run rate.

Growth Drivers

Mohalla Tech’s two trump cards are – microdrama and ad business. 

Just to refresh, microdramas, snackable short-form videos, is an increasingly popular mobile entertainment category.

According to a Lumikai report, published in April 2026, India’s microdrama sector is worth USD 300 million. This jump is phenomenal given the category barely existed one year ago. The industry is projected to be worth USD 4.5 billion by 2030. 

Mohalla Tech is certainly reaping the dividends of this boom. Since 156 million episodes played per day in October 2025, it hit 1 billion episodes on the same metric in October 2026. Moreover, the time spent on Moj has doubled in the last year.

While subscription remains a hard sell, the company is leveraging its other platforms like Moj to turn micro-drama engagement into monetisation. 

Charan said that with the number of Moj users growing and time spent doubling, the company was able to leverage a larger surface to advertise on, get more ad impressions, and eventually sell more ads. 

“When we present these numbers next year, you should see an ad revenue figure north of INR 350 crore, given that Q2 annualized is already INR 350 crore-plus. The Q3(October, November, and December) is the seasonal ad revenue quarter for every player in ad monetization, and the month of October is up more than 50% year-on-year driven by festive demand,” he said.

“Our Q2 ad revenue grew 40% year-on-year, and Q3 should be up by more than 40%. This gives us confidence that next year you will see very strong growth on our ad revenue line. Beyond subscription growth, advertising is now acting as an equally strong second engine. We also favor ad revenue because it carries significantly higher profit margins than a subscription business,” he continued. 

AI

Mohalla Tech and many other microdrama players are betting big on AI. Earlier this year, it announced plans to invest up to INR 100 crore through CY2026 to scale AI-generated micro drama content. The company said the investment will support AI-led content production, expand its engineering and production teams, and strengthen its in-house AI technology stack.

The company anticipates that AI-assisted production workflows are going to reduce overall production costs by 70%, up from the current cost reduction of around 40%, by lowering the need for physical shoots, large crews and location logistics.

Meanwhile, the likes of Verse and Eloelo are also building native AI platforms aimed at creators. 

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Charan puts the company’s point of view into perspective citing the example of China’s Bytedance (TikTok parent) which has launched a new app called Hongguo, which is said to be the company’s biggest AI investment. He pointed out that the investment is aimed at the recommendation system.

“The power of AVOD microdrama, or of any discovery-driven platform, is actually discovery. When you scroll through Instagram Reels, YouTube Shorts, TikTok, or Moj, the next video that appears on your screen is determined by AI. Without you realizing it, as the AI gets sharper, your tendency to stay on the platform increases. That drives higher time spent and stronger retention,” he said.

“That is the silent, unseen, behind-the-scenes AI—the recommendation system—where we have made most of our investments. The reason we could build Moj and ShareChat to the scale we have reached today is this AI engine, which we have been developing since 2019, long before AI became a buzzword,” he continued.

Developing… Stay tuned for more updates.