Zaggle Q4 FY26 results: Profit up 30%, revenue 50%

Performance snapshot: a strong close to FY26

Zaggle Prepaid Ocean Services reported a sharp improvement in its Q4 FY26 financial performance, supported by higher revenue and better operating leverage. Consolidated net profit rose 30.42% year-on-year (YoY) to ₹40.60 crore, while revenue from operations increased 49.94% to ₹671.91 crore in the quarter ended 31 March 2026. The company also reported an improvement in profitability metrics, with adjusted EBITDA rising faster than revenue and margins moving up from the year-ago period.

Management linked the quarter’s outcome to execution consistency, calling it the third consecutive quarter of record performance. The commentary also set up FY27 as an expansion year, with growth expected from product development and new geographies.

Q4 FY26: revenue growth and profit expansion

For Q4 FY26, profit before tax (PBT) stood at ₹54.46 crore, up 31.96% from ₹41.27 crore in the corresponding quarter last year. Net profit (PAT) reached ₹40.60 crore, reflecting the company’s ability to convert topline growth into earnings. Revenue from operations came in at ₹671.91 crore, marking nearly 50% YoY growth.

Adjusted EBITDA for the quarter was ₹60.46 crore, up 62.4% YoY, outpacing both revenue and PAT growth. The adjusted EBITDA margin improved to 9.8% in Q4 FY26 from 9.0% in Q4 FY25, indicating better cost efficiency or mix benefits during the quarter.

The company’s update highlighted that the quarter was part of a broader run of record results, which management said helped close FY26 “on a strong footing” with the highest-ever quarterly and annual results.

Cost structure: expenses rise, but margin improves

Total expenses increased 43.89% YoY to ₹549.77 crore in Q4 FY26. Even with this rise, revenue grew faster than expenses, which helped support the margin expansion seen at the EBITDA level.

Two expense lines highlighted in the results showed YoY declines. Cost of point redemption was ₹221.61 crore, down 36.17% YoY. Employee benefits expense was ₹16.46 crore, down 3.46% YoY. These movements, alongside revenue growth, likely supported the stronger adjusted EBITDA growth rate reported for the quarter.

While the company did not provide a detailed breakdown of all operating cost drivers in the provided update, the combination of lower point redemption costs and a slightly lower employee benefits line stands out in a quarter where overall expenses still rose materially.

Full-year FY26: topline crosses ₹1,900 crore

On an annual basis, Zaggle reported topline revenue of ₹1,907.6 crore in FY26, up 46.3% YoY. Adjusted EBITDA for FY26 stood at ₹191.6 crore, up 51% YoY. Profit after tax for the year was ₹138.8 crore, up 51.8% YoY.

The annual figures mirror the quarterly trend: profitability expanded faster than revenue, consistent with the improvement in margin and operating scale referenced in the quarterly numbers. Management framed the year as a continuation of record performance across multiple quarters.

Quarterly context: results reiterated with key metrics

The quarterly metrics were also presented as: revenue of ₹617.9 crore (up 49.9% YoY), adjusted EBITDA of ₹60.5 crore (up 62.4% YoY) and PAT of ₹40.6 crore (up 30.4% YoY). These figures align closely with the Q4 FY26 results cited elsewhere in the update, and were described as being supported by sustained margin improvement.

Separately, the broader background text also referenced growth momentum in earlier periods, including Q2 FY26 revenue from operations of ₹430.98 crore (₹4,309.8 million) and PAT of ₹33.24 crore (₹332.4 million), alongside an EBITDA margin of 10.1% for that quarter.

Business mix and operating scale mentioned in the update

The background notes said 97% of revenue is from spend-based transactions, positioning the company closely with transaction-led enterprise spend management activity. The FY25 annual report excerpt cited 3.28 million users and 3,455 active corporate clients by year-end.

The same material also referenced NPCI approval as a TPAP, enabling UPI-based payments directly through the company’s app and platform, with an impact cited for over 3 million users across services. While these points were not tied to a specific quarter’s financial line items in the update, they provide context on platform scale and product capability.

FY27 outlook: growth guidance and expansion priorities

Looking ahead, the company said it remains optimistic about opportunities across digital payments and enterprise spend management. For FY27, it projected standalone revenue growth of 25-30% and consolidated revenue growth of around 40%.

Management attributed the expected growth to AI-first product development, expansion into MENA and US markets, and deeper monetisation across its “four strategic pillars.” The update did not provide segment-level revenue targets, but the guidance sets an expectation that consolidated growth could outpace standalone growth.

Stock market reaction

Shares of Zaggle Prepaid Ocean Services rose 1.84% to close at ₹284.55 on the BSE following the results update.

Key reported numbers at a glance

Why this update matters for investors

The Q4 FY26 result shows a combination of high revenue growth and faster growth in adjusted EBITDA, alongside an improvement in EBITDA margin. The cost lines disclosed in the update point to favourable movement in point redemption costs, which fell YoY, even as total expenses increased.

The FY27 guidance also matters because it differentiates between standalone (25-30%) and consolidated (around 40%) growth expectations, and links the outlook to specific execution themes: AI-first product development, geographic expansion into MENA and the US, and monetisation across strategic pillars. For market participants, future updates on how these initiatives translate into quarterly revenue and margin outcomes will be key, given the company’s transaction-linked revenue mix.

Closing note

Zaggle’s Q4 FY26 numbers underline strong YoY growth in revenue, profits, and adjusted EBITDA, with an improvement in reported EBITDA margin. The company has also laid out FY27 growth expectations, anchored around product development and international expansion plans, which investors are likely to track through subsequent quarterly disclosures.