Zaggle Prepaid Ocean Services (ZAGGLE) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 revenue reached INR 423 crores (Rs. 4,233 Mn), up 28% year-over-year, driven by strong demand, expanding user base of 4 million, and strategic shift toward operational optimization and AI integration.

• Strategic focus shifted from pure growth to improving cash flows, optimizing capitalization, and integrating recent acquisitions, especially Dice and Zagg.money, with AI investments central to product innovation and efficiency.

• Investment in Unobanc enhances cross-border payments and forex capabilities, expanding offerings for corporate and retail clients.

• Dice acquisition brings marquee enterprise clients and accelerates AI roadmap, strengthening spend analytics and predictive expense management.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2026, were approved and reviewed by the Board and auditors, with no material misstatements noted.

Financial highlights

• Consolidated revenue from operations reached INR 423 crores (Rs. 4,232.65 Mn), up 27.5% year-over-year, with consolidated adjusted EBITDA at INR 34.7 crores (Rs. 347 Mn), margin at 8.2% (down from 10.1%).

• Gross profit increased 15.4% year-over-year to Rs. 1,895 Mn, with gross margin declining to 44.8% from 49.5%.

• Profit after tax dropped 32.9% year-over-year to Rs. 175 Mn, with PAT margin at 4.1%; EPS (basic and diluted) at 1.30, down from 1.94.

• Cashback as a percentage of program fees was 66.3% in Q1 FY 2027, up slightly from 65.7% in Q1 FY 2026.

• Standalone revenue grew 18% year-over-year to INR 390 crores (₹3,901.74 million), despite Q1 being seasonally soft.

Outlook and guidance

• Management maintains 40% consolidated revenue growth guidance for FY 2027, expecting acceleration from Q2 as Dice revenues begin.

• Revenue is seasonally weighted, with 60% typically generated in the last two quarters; Dice contract revenue expected from Q2 FY27.

• Focus remains on balancing growth with positive cash flows, prudent capitalization, and prioritizing high-quality earnings.

• Board approved an investment of up to ₹79.70 million to acquire up to 19.9% equity in Unobanc Private Limited after the quarter end.