Zaggle Prepaid Ocean Services Limited, a prominent SaaS fintech company specializing in spend management solutions, announced its audited financial results for the quarter and fiscal year ended March 31, 2025. The company delivered an outstanding performance, marked by significant revenue growth and enhanced profitability.
Financial Performance Overview (Standalone)
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Revenue from Operations: ₹1,302.65 crore in FY25, reflecting a 68.0% year-on-year (YoY) increase from ₹775.60 crore in FY24.
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Profit After Tax (PAT): ₹87.48 crore, a 98.7% YoY rise from ₹44.02 crore in FY24, nearly doubling the previous year’s figure.
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Adjusted EBITDA: ₹124.49 crore, up 45.5% YoY from ₹85.57 crore, with a margin of 9.6% compared to 11.0% in FY24.
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Cash PAT: ₹111.43 crore, a 65.4% YoY increase from ₹67.36 crore.
Q4 FY25 Financial Results (Standalone)
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Revenue from Operations: ₹411.45 crore, a 50.5% YoY growth from ₹273.37 crore in Q4 FY24 and a 22.3% quarter-on-quarter (QoQ) increase from ₹336.44 crore in Q3 FY25.
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PAT: ₹31.96 crore, up 66.8% YoY from ₹19.16 crore in Q4 FY24 and 58.0% QoQ from ₹20.24 crore in Q3 FY25.
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Adjusted EBITDA: ₹37.93 crore, reflecting a 39.6% YoY increase and a 20.6% QoQ rise, with a margin of 9.2% compared to 9.9% in Q4 FY24.
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Cash PAT: ₹39.41 crore, an 85.5% YoY increase and a 50.4% QoQ growth.
Strategic and Operational Developments
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Revenue Milestone: Zaggle surpassed its FY25 revenue guidance, achieving ₹1,302.65 crore, driven by robust demand for its spend management solutions.
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Profitability Growth: The near-doubling of PAT reflects disciplined cost management and operational efficiency, with Q4 FY25 showcasing strong sequential and annual growth.
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Capital Raising and Utilization:
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IPO Proceeds: From the ₹362.16 crore raised in FY24, ₹244.85 crore was utilized by March 31, 2025, primarily for customer acquisition (₹208.78 crore) and technology development (₹14.24 crore). The remaining ₹117.31 crore is temporarily invested in bank deposits.
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Qualified Institutional Placement (QIP): In December 2024, Zaggle raised ₹574.14 crore (net) by issuing 11.37 million equity shares at ₹523.20 per share. Of this, ₹83.68 crore was used for debt repayment and strategic investments, with ₹490.46 crore unutilized, largely held in bank deposits.
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Equity and ESOP Activity: The company’s total equity increased to ₹1,247.61 crore from ₹575.38 crore, bolstered by QIP proceeds. Zaggle granted 438,425 net employee stock options and allotted 353,440 shares under its ESOP Scheme 2022.
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Innovation and Technology: Zaggle continued to invest in artificial intelligence and product innovation to enhance customer engagement and expand its portfolio, aligning with long-term strategic objectives.
Balance Sheet and Cash Flow Summary (Standalone)
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Total Assets: Rose to ₹1,308.30 crore as of March 31, 2025, from ₹696.14 crore in FY24, driven by higher bank balances (₹615.15 crore) and trade receivables (₹214.90 crore).
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Equity Growth: Total equity reached ₹1,247.61 crore, reflecting capital infusions and retained earnings.
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Cash Flow: Net cash from operating activities improved to ₹19.85 crore in FY25 from a negative ₹82.75 crore in FY24. Financing activities generated ₹496.34 crore, primarily from equity issuances.
Consolidated Financial Overview
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Profit Before Tax: ₹118.42 crore in FY25, compared to ₹59.78 crore in FY24.
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Cash Flow: Operating activities generated ₹19.70 crore, while financing activities contributed ₹496.32 crore. Cash and cash equivalents increased to ₹38.18 crore from ₹7.94 crore.
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Subsidiary and Associate Contributions: The consolidated results include contributions from Span Across IT Solutions (subsidiary from September 30, 2024) and Mobileware Technologies (associate from March 25, 2025), with minimal impact on overall figures.
Management Perspective
Raj P Narayanam, Founder and Executive Chairman of Zaggle, commented, “Zaggle’s FY25 performance represents a landmark achievement, with revenues exceeding ₹1,300 crore and PAT nearly doubling. The third consecutive record-breaking quarter in Q4 FY25, with 50.5% YoY revenue growth and 66.8% PAT growth, underscores our strategic focus and execution discipline. Continued investments in AI and product innovation position Zaggle for sustained growth, with projected FY26 topline growth of 35-40%.”
Outlook for FY26
Zaggle projects organic revenue growth of 35-40% in FY26, driven by enhanced operating leverage, operational efficiencies, and cross-selling opportunities. The company remains focused on margin expansion and expanding its SaaS offerings to address evolving market demands.
Disclaimer: The views expressed in this article are those of the author and are based on available data and market observations. This is not intended as investment advice. Investors should conduct their own research or consult a financial advisor before making any investment decisions.