Zaggle Prepaid Ocean Services (ZAGGLE) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-yearly revenue and profit growth, with Q2 FY26 revenue at INR 4,310-4,322 million and H1 FY26 revenue at INR 7,625-7,641 million, and adjusted EBITDA margin of 10.1% for the quarter.

• Expanded product suite and partnerships, including launches in the cards segment, entry into retail cards via AU Small Finance Bank, and broader banking partner network.

• Continued focus on innovation, AI initiatives, and global expansion, especially into MENA and US markets.

• Standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2025, were approved and reviewed by the Board and auditors.

• Acquisition of 55.56% stake in Greenedge Enterprises Private Limited completed, making it a subsidiary.

Financial highlights

• Q2 FY26 revenue from operations grew 42%-42.4% YoY to INR 4,310-4,322 million; H1 FY26 revenue up 37%-37.4% to INR 7,625-7,641 million.

• Adjusted EBITDA for Q2 FY26 was INR 437 million, up 48.1% YoY; PAT for Q2 FY26 was INR 332-349.84 million, up 79%-79.1% YoY.

• H1 FY26 PAT was INR 591-610.89 million, up 67.6%-68% YoY.

• Cashback expenses surged 70% YoY to INR 40 crore in Q2; cash balances at INR 573 crore as of September 2025.

• Gross profit margin for H1 FY26 was 47.1%.

Outlook and guidance

• Revenue growth guidance raised to 40%-45%; EBITDA margin guidance maintained at 10%-11%.

• Targeting 14%-15% adjusted EBITDA margin over the next four to five years.

• Retail co-branded card business expected to contribute INR 500 crore revenue and INR 50-60 crore EBITDA annually by year five.

• Positive operating cash flow expected by end of FY26, with strong cash generation from FY27 onwards.

• Board approved issuance of 1,058,201 convertible warrants at INR 567 per warrant, aggregating to INR 600 million, pending stock exchange approval.