Zaggle's Q3 FY26: A Quarter of Record-Breaking Growth and Strategic Expansion

Zaggle Prepaid Ocean Services Limited, a prominent player in the spend management sector, has announced its stellar financial performance for the third quarter and nine months ended December 31, 2025. The company delivered its highest-ever quarterly and nine-month results, showcasing robust growth across all key metrics and solidifying its position in the market. This period marks a significant milestone for Zaggle, driven by strategic initiatives, technological advancements, and successful acquisitions.

For Q3 FY26, Zaggle reported a topline revenue of INR 497.6 crores, reflecting an impressive 47.9% year-on-year (YoY) growth. This strong revenue performance was complemented by exceptional profitability, with adjusted EBITDA crossing the INR 50 crore mark for the first time to reach INR 51.3 crores, a 62.9% YoY increase. The profit after tax (PAT) surged to INR 36 crores, demonstrating a remarkable 77.7% YoY growth. For the nine-month period (9M FY26), the company recorded revenues of INR 1,260.1 crores, growing 41.4% YoY, surpassing its full-year FY25 profitability levels. Adjusted EBITDA for 9M FY26 stood at INR 127.7 crores, up 47.5% YoY, and PAT reached INR 95.1 crores, a 71.3% YoY increase.

Driving Growth Through Innovation and Strategic Moves

Zaggle's success in Q3 FY26 is not merely a story of numbers but a testament to its strategic foresight and execution. The company has made significant strides in integrating AI into its operations, transitioning from an AI-led vision to tangible execution. The rollout of Agentic AI workflows is already enhancing automation across critical functions such as vendor reconciliations, compliance monitoring, and end-to-end spend approvals. This technological leap has drastically reduced product development cycles from over 75 days to less than 30 days, boosting operational agility and responsiveness to customer needs. This focus on R&D ensures Zaggle remains competitive and ahead in the rapidly evolving fintech landscape.

In terms of market expansion, Zaggle is actively pursuing both domestic and international opportunities. The Board approved the incorporation of Zaggle Payments IFSC Ltd in GIFT City, a wholly-owned subsidiary aimed at expanding its global cross-border payments and financial services footprint. Furthermore, the company is in the final stages of forming an entity in UAE, with Abu Dhabi as its base for expanding into the MENA region. These initiatives underscore Zaggle's ambition to establish a significant global presence.

Acquisitions Fueling New Monetization Pillars

Zaggle's inorganic growth strategy has been a key driver of its expanded capabilities and market reach. The acquisition of Greenedge Limited has significantly enhanced its offerings in the rewards and loyalty sector, bolstering the Propel platform. Greenedge has already demonstrated strong performance, leveraging Zaggle's network to scale its revenues. Another pivotal acquisition is Rio Money, now rebranded as Zagg.Money, which introduces Zaggle's fourth monetization pillar. This acquisition targets a salaried user base of over 3.7 million, aiming to build a high-margin business with projected revenues of INR 500 crores. This move allows Zaggle to cross-sell retail financial products and capitalize on its strong corporate relationships.

Additionally, the acquisitions of TaxSpanner and Mobileware Technologies (rebranded 86400) have strengthened Zaggle's presence in the spend management and SaaS FinTech industries, respectively. TaxSpanner's comprehensive tax services complement Zaggle's offerings, while 86400 has seen massive growth, securing new partnerships and significantly increasing its revenue since its engagement with Zaggle. The company also anticipates significant opportunities from new draft income tax rules, which extend employee tax benefits to the new tax regime and increase permissible values for meal benefits and other allowances, positively impacting its 'Save' business.

Outlook and Investor Confidence

Management's commentary reflects a confident yet conservative outlook. The company expects adjusted EBITDA margins to reach 14-15% in the next 5-7 years, with a revenue target of $1 billion (INR 8,300 crores). For FY26, organic and domestic revenue growth is projected at 40-45%. Zaggle is also focused on improving its operating cash flow, aiming for breakeven in FY26 and positive OCF in FY27. Despite acknowledging some historical challenges with cash generation, the management is committed to disciplined capital allocation and accretive deals.

Zaggle's Q3 FY26 performance underscores its strategic clarity, sustained growth, and disciplined execution. By leveraging technology, expanding globally, and integrating key acquisitions, the company is well-positioned for continued profitable growth, reinforcing investor trust in its long-term vision.