Zaggle Q1: Profit Surges 56% YoY To INR 26 Cr

Fintech SaaS company Zaggle’s consolidated net profit surged 56% to INR 26.1 Cr in Q1 FY26 from INR 16.7 Cr in the year-ago quarter. However, it declined 16% from INR 31.1 Cr in the previous quarter.

Operating revenue zoomed 32% to INR 332 Cr from INR 252.2 Cr in Q1 FY25. But, the top line contracted 19% on a sequential basis from INR 412.1 Cr.

Including other income of INR 11.7 Cr, the company’s total income for Q1 FY26 jumped 34% YoY to INR 343.7 Cr. Meanwhile, Zaggle’s total expenses increased 32% YoY to INR 309.6 Cr.

Adjusted EBITDA for the quarter increased about 28% YoY to INR 32.7 Cr, while adjusted EBITDA margin declined 20 bps YoY to 9.9%.

Zaggle founder and executive chairman Raj Narayanam reiterated the Hyderabad-based SaaS company’s guidance for the year, with top line growth expected in the range of 35% to 40% and adjusted EBITDA margin projected between 10% to 11%.

“With strong fundamentals in terms of growth in the total number of customers and users, healthy growth was visible across our revenue streams. Our recent strategic customer wins, such as Hindustan Pencils, ApolloHealth, Mo Engage, Novozymes, DTDC, CK Birla Healthcare, Truecaller, etc., reinforce our value proposition,” he noted.

Zaggle’s employee rewards platform, Zaggle Propel, continued to be the driver of the SaaS company’s top line this quarter. The vertical’s revenue increased 51% YoY to INR 175.9 Cr. However, this number dropped 28% from INR 245 Cr.

Meanwhile, Zaggle earned INR 145.5 Cr from its program fee revenue stream, up 15% from INR 126.9 Cr in the year-ago quarter. Service fee revenue stood at INR 10.6 Cr, up 26% from INR 8.4 Cr in the year-ago period.

For context, Zaggle offers a platform that automates and streamlines business expenses, payments, and rewards. Its product portfolio includes Zaggle Propel, employee benefits and tax-saving solutions platform Zaggle Save, utility payments platform Zaggle Zoyer, all-in-one expense management system Zaggle EMS, corporate credit card ZatiX, and prepaid cards.

The company claims that it serves over 3,500 corporates with 3.3 Mn users and has issued over 50 Mn prepaid cards with 16 banking partners.

Besides its core offerings, Zaggle has been focussed on beefing up its stack with acquisitions. While it announced the acquisition of UPI player Rio.Money in July, it announced the acquisition of enterprise spend management startup Dice Enterprises in June. Prior to that, Zaggle acquired stakes in Mobileware and Effiasoft in March.

To power the acquisitions, Zaggle raised INR 594.8 Cr via a qualified institutional placement (QIP) in December.

Shares of Zaggle ended today’s trading session 2.09% lower at INR 367.30 on the BSE.