ShareChat's parent, Mohalla Tech, has crossed ₹1,000 crore in annual operating revenue for the first time, according to reports on its FY26 filings. Whether that counts as a turnaround depends on which loss line you read.
What the filings reportedly show
Inc42 and Entrackr both report operating revenue of about ₹1,016 crore in FY26, up roughly 40% from about ₹723 crore in FY25.
The loss is where reports diverge. Inc42 reports a consolidated net loss of ₹1,978.4 crore, up 78.5% year on year. Entrackr reports a net loss of ₹672 crore against ₹796 crore in FY25, a narrowing of about 16%, but does not say whether its figure is consolidated or standalone. Neither article mentions the other's number, and we could not reconcile them. Readers should treat the headline loss as unsettled until the company's filings are checked directly.
Both reports agree on one item: share-based payment (ESOP) expenses of about ₹739 crore in FY26, against roughly ₹184 crore in FY25. That is a non-cash charge, but it is still a real cost to shareholders through dilution.
Why the loss widened, according to Inc42
Inc42 attributes the larger consolidated loss to higher ESOP expenses, foreign exchange losses and finance costs. It reports forex losses of ₹566.9 crore (against ₹128 crore a year earlier) and total expenses up 65.6% to about ₹3,083 crore. Management is quoted as saying the loss was largely driven by non-cash and notional items, including provisions for interest on hybrid debt and unrealised forex losses. That is the company's characterisation, and the underlying notes would be needed to test it.
Business development spending also rose sharply, to about ₹335 crore from about ₹43 crore, per both reports. That is the kind of spending that can build an audience or simply buy it, and the filings alone do not say which.
The operating picture is better than the net loss
Measured before those items, the trend is more encouraging. Inc42 and Entrepreneur India report that the FY26 EBITDA loss narrowed to about ₹91 crore, a 58% improvement, and that the company posted its first EBITDA-positive quarter in Q1 FY27, a profit of about ₹9.5 crore on a 0.3% margin. That margin is thin, and a single quarter is not a trend. Entrackr's separate EBITDA margin figure of minus 84% does not match these numbers, so we have not used it.
CFO Manohar Charan told Entrepreneur India that the company reached cash flow break-even in the middle of FY26, and the company expects EBITDA of nearly ₹25 crore in FY27. Both are company statements and forecasts, not results.
What is driving revenue
Entrackr's segment breakdown, which we could not cross-check, puts Chatroom (live audio and video rooms) at ₹471 crore, or 46% of operating revenue, up 8.8%. QuickTV subscriptions, tied to the company's microdrama push, were ₹293 crore. Advertising fell 13% to ₹252 crore in FY26.
Management says advertising has recovered. Charan said second-quarter FY27 ad revenue grew 40% year on year, and Entrepreneur India reports the company's figures showing daily microdrama episodes played rising from 156 million in October 2025 to 1 billion in October 2026. These are company figures. A Lumikai report cited by Entrepreneur India values India's microdrama market at $300 million today and projects $4.5 billion by 2030, a forecast rather than a fact.
What to watch
Co-founder and CEO Ankush Sachdeva said the company has "turned the corner" on profitability and is funding growth from its own cash flows. The test is whether EBITDA-positive quarters repeat, whether advertising keeps growing and whether finance and forex costs ease. Entrepreneur India reports a planned $400 million IPO, with FY27 described as crucial; no date is confirmed in the sources we reviewed.
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