Key Highlights
- Zaggle’s Q1 FY27 revenue from operations rose 27.5% YoY to ₹423.27 crore.
- Adjusted EBITDA increased 4% YoY to ₹34.74 crore.
- Adjusted EBITDA margin stood at 8.2% compared with 10.1% in Q1 FY26.
- Profit after tax declined 32.9% YoY to ₹17.53 crore.
- PAT margin fell to 4.1% from 7.9% in Q1 FY26.
- Adjusted profit before tax stood at ₹26.16 crore compared with ₹34.90 crore in Q1 FY26.
- Incentive and cashback expenses stood at approximately 66.3% of revenue.
- Zaggle completed an ₹8 crore investment in Unabanc Private Limited.
- Revenue from Dice contracts is expected to start reflecting from Q2 FY27.
Zaggle Prepaid Ocean Services Limited reported a 27.5% year-on-year increase in consolidated revenue from operations to ₹423.27 crore for the quarter ended June 30, 2026, compared with ₹331.97 crore in Q1 FY26. However, profit after tax (PAT) declined 32.9% YoY to ₹17.53 crore from ₹26.11 crore.
The SaaS fintech company, which provides spend management products and financial technology solutions, announced its unaudited financial results for the first quarter of FY27 on August 14, 2026.
Revenue Performance
Zaggle’s consolidated revenue from operations increased to ₹423.27 crore in Q1 FY27 from ₹331.97 crore in the corresponding quarter of the previous financial year, marking a 27.5% YoY growth.
The company attributed the quarter’s performance to stronger contributions from its Propel business, including performance from Greendage and overriding commissions received during the quarter.
EBITDA and Margin
Adjusted EBITDA stood at ₹34.74 crore in Q1 FY27, compared with ₹33.42 crore in Q1 FY26, representing a 4% year-on-year increase.
Despite the growth in adjusted EBITDA, the adjusted EBITDA margin moderated to 8.2% from 10.1% a year earlier.
Zaggle said the margin was affected by expenses associated with the Dice acquisition, including transaction-related costs, one-time vendor payments and relocation expenses for more than 100 professionals. The company also cited employee increments, additional costs following the Zaggle Money acquisition and higher expenses being recognized in the profit and loss account.
Revenue from Dice contracts was not included in Q1 FY27 and is expected to begin contributing from Q2 FY27.
Profit Before Tax
Adjusted profit before tax stood at ₹26.16 crore in Q1 FY27, compared with ₹34.90 crore in Q1 FY26.
The company said its adjusted PBT calculation includes the profit before tax share of its associate.
Profit After Tax
Zaggle reported consolidated profit after tax of ₹17.53 crore for Q1 FY27, down 32.9% from ₹26.11 crore in Q1 FY26.
PAT margin consequently declined to 4.1% from 7.9% in the year-ago quarter.
The company also reported ESOP costs of ₹0.41 crore during the quarter, compared with ₹1.83 crore in Q1 FY26.
Incentive and Cashback Optimisation
Incentive and cashback expenses as a percentage of revenue stood at approximately 66.3% during Q1 FY27. Zaggle said this represented an optimisation from approximately 69% recorded in Q4 FY26.
The company indicated that the optimisation of these costs remains part of its efforts to improve operating efficiency.
Expansion Through Acquisitions and Investments
Zaggle said it has completed an investment of ₹8 crore in Unabanc Private Limited, a subsidiary of Hop Financial Solutions Limited that holds an RBI-authorised Dealer Category II licence.
The investment is expected to strengthen the company’s capabilities in cross-border payments, foreign exchange cards and remittances. These capabilities are intended to support financial solutions for both corporate and retail customers.
The company also highlighted its recent Dice acquisition, through which it has added enterprise clients across multiple sectors. Zaggle said Dice’s technical capabilities are contributing to its AI roadmap across its Save and Zoyer platforms.
Management Commentary
Raj P Narayanam, Founder and Executive Chairman of Zaggle Prepaid Ocean Services, said Q1 FY27 represented a transition point for the company as it moved from a period of profitable growth towards a phase focused on consolidation and transformation.
The company is focusing on optimising its core operations, expanding the use of artificial intelligence across its platforms and integrating recent acquisitions while maintaining financial discipline.
Zaggle said its acquisition strategy, card initiatives and international expansion are expected to support the next phase of platform growth.
Outlook
The company expects revenue contributions from Dice contracts to begin from Q2 FY27. It is also working on integrating its acquisitions and expanding its capabilities in cross-border payments, foreign exchange and remittance services.
Zaggle’s Q1 FY27 performance therefore reflected strong revenue growth alongside pressure on profitability and margins as the company incurred acquisition-related and employee-related expenses while integrating its recently acquired businesses.