Zaggle Prepaid Ocean Services LimitedFinancial ServicesZAGGLE
Q1 FY27 earnings callZaggle Prepaid Ocean Services Limited
The quarter was about deliberate transformation focused on improving cash flow and calibrating capitalization, which impacted margins in the short term, while revenue grew 28% YoY and recent acquisitions are poised to contribute from Q2.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | INR423 crores | 28% | |
| Adjusted EBITDA | INR34.7 crores | — | |
| Adjusted EBITDA Margin | 8.2% | — | |
| Stand-alone Revenue | INR390 crores | 18% | |
| 86400 Revenue | INR22 crores | 29% | |
| GreenEdge Revenue | INR44 crores | 160% | |
| TaxSpanner Revenue | INR80 lakhs | 65% | |
| Active Users | 4 million | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹336.89 Cr+68.9% YoY+11.3% QoQ | ₹19.74 Cr+29.7% YoY-2.7% QoQ | ₹1.61+9.5% YoY-3% QoQ |
| Q2 FY25 | ₹302.56 Cr+64.2% YoY+20% QoQ | ₹20.29 Cr+167.7% YoY+21.3% QoQ | ₹1.66+112.8% YoY+21.2% QoQ |
| Q1 FY25 | ₹252.21 Cr+112.9% YoY-7.7% QoQ | ₹16.73 Cr+712.1% YoY-12.7% QoQ | ₹1.37+470.8% YoY-12.7% QoQ |
| Q4 FY24 | ₹273.37 Cr— YoY+37% QoQ | ₹19.16 Cr— YoY+25.9% QoQ | ₹1.57— YoY+6.8% QoQ |
| Q3 FY24 | ₹199.51 Cr— YoY+8.3% QoQ | ₹15.22 Cr— YoY+100.8% QoQ | ₹1.47— YoY+88.5% QoQ |
TL;DR
- Revenue grew 28% YoY to INR423 crores, but adjusted EBITDA margin declined to 8.2% due to DICE acquisition costs and policy shifts.
- Management is pivoting focus from 'profitable growth' to optimizing cash flow, capitalization, and operational prudence.
- DICE acquisition completed with 100 AI professionals relocated; revenue from novated contracts will start from Q2 FY27.
- Subsidiaries like 86400 and GreenEdge showed strong growth, with GreenEdge revenue up 160% YoY.
- Program fee growth slowed to 10% YoY as part of a deliberate shift to optimize working capital and cash flow.
- Guidance of 40% consolidated revenue growth for FY27 is maintained, with expectations for acceleration in coming quarters.
Said on the call
“For FY27 for us is going to be about transformation through consolidation, optimizing our core operations, harnessing the power of AI and seamlessly integrating our recent acquisitions.”
From the Q&A
| Topic | What management said |
|---|---|
| Revenue Growth Slowdown | Management attributed the 28% YoY consolidated growth (versus historical 40-50%) to Q1 seasonality, the deliberate shift to optimize cash flow by moving customers to banks with faster revenue realization, and DICE revenue starting only from Q2. They reaffirmed 40% growth guidance for FY27. |
| DICE Acquisition Impact on Margins | EBITDA margin dropped to 8.2% due to ~INR3 crores of DICE costs (relocation, one-time tech payments) absorbed in Q1 without corresponding revenue, which starts from July 1 (Q2). Margins are expected to improve as DICE revenue kicks in. |
| Capitalization Policy Shift | Management is proactively moderating new capitalization levels, moving some costs (like ~INR6 crores for an immediate product) to the P&L to better reflect run-rate costs and clean the balance sheet, in consultation with auditors. |
| Program Fee Growth Outlook | The 10% YoY growth in program fees was 'by design' to optimize cash flow and calibrate capitalization. Growth is expected to improve in coming quarters, but the primary focus is on improving cash conversion and the net revenue percentage after cashback. |
| EBITDA Margin Trajectory | Management clarified that the long-term target of 14-15% EBITDA margin is over a 5-7 year horizon. Recent volatility is due to acquisitions and policy shifts. The focus on expensing costs and improving cash flow is intended to set the trajectory towards that goal over the next 15-18 months. |
| DICE Revenue Expectations | DICE did about INR12 crores last year. For FY27, management expects INR15-16 crores, with 90%+ gross margins, and better results next year as payment rails integration completes. |
Guidance
- Consolidated revenue growth guidance of 40% for FY27 is maintained.
- Growth is expected to accelerate through Q2 and the remainder of the fiscal year.
- DICE contract revenue will start accruing from Q2 FY27.
- TaxSpanner is on target to breakeven this financial year.
- An ADGM (Abu Dhabi) subsidiary is planned to be opened in Q2 FY27.
- Employee costs are expected to go up in Q2 due to DICE employee onboarding.
- Other expenses (one-time in Q1) are expected to taper down starting Q2.
Source
Summary written from the transcript filed by Zaggle Prepaid Ocean Services Limited for the call held on 14 Aug 2026; published 21 Aug 2026, 18:49 IST.