ShareChat Parent Passes Rs 1,000 Crore Revenue But Still Loses Rs 672 Crore

Mohalla Tech, the parent of ShareChat, crossed Rs 1,000 crore in operating revenue for the first time in FY26 — and still posted a net loss of Rs 672 crore. Revenue from operations grew 40.5% to Rs 1,016 crore in FY26 from Rs 723 crore in FY25, according to the company's annual results. The loss narrowed 15.58% from Rs 796 crore a year earlier.

The Bengaluru-based company runs a vernacular social media and digital entertainment business through ShareChat, Moj and QuickTV, targeting regional-language audiences in India. Eleven years in, it has often been projected as a potential rival to Meta in India, but it is yet to give the social media giant meaningful competition.

Where does the money come from?

Chatrooms, ShareChat's video-call interaction feature, remain the biggest earner. The segment grew 8.8% to Rs 471 crore and accounted for 46% of total operating revenue in FY26. Advertising went the other way: ad revenue declined 13% to Rs 252 crore during the year.

QuickTV, the company's newest bet, contributed Rs 293 crore in subscription revenue in FY26. Unlike advertising, subscription revenue is recognised over the subscription period. Mohalla Tech also added Rs 89 crore through the reversal of provisions for doubtful assets, taking total income to Rs 1,105 crore.

What is driving costs up?

Business development is the standout line item. As the company pushes its new verticals, business development expenses surged 8.7X to Rs 335 crore in FY26 from Rs 43 crore in FY25. Employee benefit expenses moved the other way, declining 16% to Rs 220 crore after layoffs over the past year. That comparison excludes ESOP expenses of Rs 739 crore in FY26 and Rs 184 crore in FY25, which are non-cash items.

Interest expenses on borrowings through debt securities cost Rs 549 crore. Server costs, content development, legal and other overheads pushed overall expenses up 14.6% to Rs 1,777 crore in FY26 from Rs 1,550 crore in FY25.

How far from profitability?

Not close. QuickTV has added a revenue stream but has yet to translate into a meaningful improvement in profitability. On a unit level, Mohalla Tech spent Rs 1.75 to earn every rupee of operating revenue in FY26, and its EBITDA margin stood at -84%. The reported net loss figure includes ESOP expenses and unrealised foreign exchange losses, giving what the results show as a fair picture of financial performance.

Can QuickTV change the story?

ShareChat and Moj together claim a user base of over 300 million, and with that audience, QuickTV could turn out to be a big opportunity if the company executes well. ShareChat has also recently entered the microdrama segment to keep up with the trend.

The warning signs sit in the mix, not the headline. The 13% drop in advertising revenue raises questions about whether brands are finding the right audience on its platforms or shifting their budgets elsewhere. Even chatrooms, the largest revenue segment, are growing at only a moderate 8.8% pace.

The next couple of years will be critical for Mohalla Tech as it tries to build new revenue streams, make better use of its existing user base and, above all, move toward profitability.