Inside ShareChat’s Mixed FY26 ShareChat parent Mohalla Tech delivered some hits and some misses in FY26. While the homegrown social…
ShareChat Parent Narrows Losses
Mohalla Tech, the parent of social media platform ShareChat, closed FY26 with mixed financial results. The company crossed the ₹1,000 Cr revenue mark and built a new growth engine in microdramas, but losses widened on the back of surging costs. Employee benefit expenses more than doubled year on year, foreign exchange losses rose after the Rupee depreciated, and marketing and user acquisition spending jumped nearly eight times over the previous fiscal.
Microdrama Pivot And EBITDA
The launch of QuickTV, its microdrama offering, generated close to one-third of Mohalla Tech's total income in FY26. This helped offset pressure on advertising following the ban on real-money gaming the previous year. Unit economics in microdramas remained difficult, pushing the platform to lean on ad-supported revenue. Despite the higher losses, operating performance improved: the FY26 EBITDA loss was halved year on year to ₹91 Cr. Management said the company recorded its first EBITDA-positive quarter in Q1 FY27, helped by better monetisation across subscriptions, livestreaming and advertising.
Why It Matters For Businesses
The numbers offer a useful read on how Indian consumer internet firms are restructuring revenue after regulatory shocks. The real-money gaming ban removed a significant advertising category, and platforms have since diversified into subscriptions, livestreaming and short-form drama content. For vendors, content partners and advertisers dealing with such platforms, the shift matters because payment terms, contract structures and revenue-share arrangements increasingly depend on subscription and ad-supported models rather than a single high-margin vertical. Rising employee and forex costs also highlight how currency movement and talent spending can affect the reported financials of startups with overseas exposure.
What To Watch Next
Mohalla Tech is targeting an EBITDA profit of ₹25 Cr in FY27 and claims roughly ₹740 Cr in revenue in …
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