Zaggle FY26 Profit Jumps 52% as Revenue Rises 46%

Consolidated revenue from operations: ₹1,908 crore, up 46% year on year.
Profit after tax: ₹139 crore, up 52%; adjusted EBITDA rose 51% to ₹192 crore.

Reader Takeaway: Operating leverage is strengthening, but acquisition integration and overseas expansion remain important execution tests.

What just happened

Zaggle Prepaid Ocean Services Limited delivered another year of strong growth in FY 2025-26, with profit expanding faster than revenue.

Consolidated revenue increased to ₹1,908 crore from ₹1,304 crore, while profit after tax rose to ₹139 crore from ₹88 crore. Adjusted EBITDA increased to ₹192 crore from ₹127 crore.

The corporate customer base crossed 3,915 from 3,455 a year earlier, while active users grew to 3.9 million from 3.3 million.

Why this matters

Profit growing faster than revenue indicates improving operating leverage as Zaggle processes more activity across its common technology and payments infrastructure.

The company is also trying to deepen relationships with existing corporate clients through a land-and-expand strategy, where customers adopt multiple spend-management, rewards and payment products over time.

Customer churn remained below 1.5% during the year, supporting the argument that the platform is maintaining client stickiness while scaling.

What changes now

Zaggle has expanded its ecosystem through acquisitions and strategic investments.

GreenEdge Enterprises adds loyalty, rewards and experiential-engagement capabilities. Rivpe Technology, now Zagg.Money, extends the platform toward consumer financial services for Zaggle's existing salaried-user base.

The company also approved the acquisition of a 19.9% stake in Unobanc Private Limited in July 2026, aimed at adding foreign-exchange and cross-border payment capabilities.

Zaggle plans to use its 3.9 million active salaried users to distribute credit, lending and insurance products with limited incremental customer-acquisition cost.

Technology and international expansion

The company said it has deployed agentic AI in production, reducing feature-launch timelines by about 50% and improving bill-processing turnaround by more than 80%.

Zaggle Payments IFSC Limited has also been established in GIFT City, while management is preparing for entry into the US market by the end of FY 2026-27.

Management's medium-term target is a sustainable adjusted EBITDA margin of 14%-15% as recurring and transaction-linked revenues scale.

Risks to watch

The main risk is integration. GreenEdge, Zagg.Money and other acquired businesses need to contribute without adding excessive complexity or cost.

International expansion into the US and MENA also brings regulatory, product and execution challenges that differ from the domestic market.

The cost of point redemption and gift cards rose 55% during FY26, reflecting higher activity in the Propel segment. Investors should track whether growth in those costs remains matched by revenue and margin expansion.

What to track next

The next important indicators are adjusted EBITDA margin progression toward the 14%-15% ambition, customer growth, cross-selling across the corporate base and monetisation of the consumer-finance opportunity.

Progress on the Unobanc investment, GIFT City operations and the planned US entry will also show whether Zaggle can extend its domestic operating model into new financial products and markets.