Zaggle Q4 FY26 Results: 50% YoY Revenue Growth

Key takeaway from the Q4 FY26 update

Zaggle Prepaid Ocean Services Ltd (NSE: ZAGGLE) reported a sharp rise in consolidated revenue and profitability for Q4 FY26 and FY26, according to its May 13, 2026 earnings call and results update. Consolidated revenue from operations in Q4 FY26 came in at ₹6,179.2 million, up 49.9% year-on-year, while adjusted EBITDA rose 62.4% to ₹604.6 million. For the full year FY26, consolidated revenue from operations increased 46.3% to ₹19,076.5 million and adjusted EBITDA grew 51.0% to ₹1,915.9 million. Management repeatedly pointed to operating cash flow improvement as a core focus alongside growth and margin expansion.

Q4 FY26 performance: revenue and EBITDA move higher

On a consolidated basis, the company disclosed Q4 FY26 revenue from operations of ₹6,179.2 million compared with ₹4,121.1 million in Q4 FY25. Adjusted EBITDA for the quarter was ₹604.6 million versus ₹372.3 million a year earlier. Sequentially, Q4 FY26 revenue from operations rose 17.6% from ₹5,255.5 million in Q3 FY26, and adjusted EBITDA increased 15.0% from ₹525.7 million.

In the prepared remarks, management also described Q4 FY26 consolidated performance in crore terms, stating revenue of about ₹618 crore and adjusted EBITDA of about ₹60 crore, broadly aligning with the reported consolidated numbers in the financial table. The company also referred to quarterly consolidated PAT of around ₹41 crore in the call, and the later results summary stated net income of ₹406.04 million for Q4 FY26.

FY26 performance: record annual numbers in the company’s commentary

For FY26, the consolidated revenue from operations figure disclosed in the financial table was ₹19,076.5 million compared with ₹13,037.6 million in FY25. Consolidated adjusted EBITDA rose to ₹1,915.9 million from ₹1,268.6 million.

Separately, the results summary stated that for the full year ended March 31, 2026, net income was ₹1,380.83 million compared to ₹879.19 million a year ago. It also reported basic EPS from continuing operations of ₹10.28 (diluted ₹10.26) versus ₹6.99 (diluted ₹6.96) in the prior year.

Management characterised FY26 as its strongest annual financial performance to date. It also highlighted a focus on process improvements and operating leverage, alongside ongoing investments in technology and product development.

Cash flow and working capital: management highlights and investor questions

A recurring theme through the Q&A was cash flow quality and working capital intensity. Management said it was “maniacally focused” on improving operating cash flow, and noted that operating cash flow was about minus ₹60 million (minus ₹6 crore) at the time of discussion, with an intent to turn it positive in the coming quarters.

During the Q&A, investors also asked about trade receivables rising from ₹400 million (₹40 crore) to ₹1,290 million (₹129 crore) year-on-year, and about differences between standalone and consolidated cash flow from operations. Management attributed weaker consolidated cash flows to investments and efficiency build-outs in newer, nascent businesses that had been taken over.

Another discussion point was capitalised development costs, with a question noting capitalised development costs nearly doubled from ₹300 million in H1 to ₹560 million in H2 FY26. Management acknowledged that AI-led product building requires investment and reiterated that it is tracking cash flow closely.

Segment and product commentary: Propel, interchange, and platform mix

In the CFO’s remarks, Zaggle said its Propel platform revenue surpassed the ₹10,000 million (₹1,000 crore) mark for the first time. The company also provided a revenue mix snapshot: program fees contributed 41% to revenue, while SaaS fee was about 2%.

The update also flagged an increase in interchange fee, which management linked to the performance of its Zoyer and “Brom” solutions (as referenced in the transcript), along with organic growth across Save and Propel businesses.

On the Propel business model, an investor questioned the working capital intensity relative to net revenue contribution. Management responded that Propel points accounting treatment affects classification, and said it had taken steps during the quarter to optimise cash flows without disrupting relationships.

Subsidiaries and investments: Green Edge and TaxPanner updates

The call included business updates on specific group entities.

For Green Edge, which runs a golf privileges program and reward programs for bank partners, management said revenue rose from about ₹365.4 million in FY25 to about ₹1,037.0 million in FY26. It also stated EBITDA increased from about ₹34.0 million to about ₹110.0 million, and PAT rose from about ₹21.0 million to about ₹81.0 million over the same period. Management projected standalone revenue growth from Green Edge to range between 40% and 50%.

On TaxPanner, management described new partnerships (including Thane Janta, Sarkari Bank, ftcash and Pinot Payments, as mentioned in the transcript) as drivers of volume growth. It also said it had appointed new board members, but the transcript excerpt did not provide complete details.

Expansion plans: US market and regional volatility commentary

Management said it remains mindful of regional volatility and stated it is engaging with government, banking and commercial partners in the region while maintaining “go-live readiness” once conditions normalise. The company also said its expansion into the US market is progressing and that it is on track to kickstart US operations by the end of the financial year.

The company further stated it intends to deploy QIP proceeds over coming quarters to accelerate growth. It also said it would publish another note on its AI development in the near future (mentioned as potentially in a couple of quarters), and described a “dual engine strategy” focused on accelerating product delivery and deploying autonomous agents.

FY27 guidance: growth outlook and EBITDA guidance caveat

Zaggle provided guidance for FY27 on the call. It said it is projecting standalone FY27 growth of around 25% to 30%. It also said consolidated growth for FY27 is around 40% on EBITDA guidance.

However, management added an important caveat: due to a change in the structure of the Dice acquisition from a 100% share acquisition to an asset purchase agreement, and the onboarding of employees sitting on the standalone profit and loss, it would provide EBITDA guidance over the next few months once integration is complete.

Management and leadership updates

The news flow included an update that Zaggle appointed Venkatesh Ramachandran as group chief financial officer, effective May 18, 2026, and noted that the interim CFO would step down.

Snapshot table: consolidated financial performance (₹ million)

Market view and analyst snapshot included in the note

The note included an analyst consensus snapshot showing a “BUY” mean consensus, coverage by 2 analysts, a last close price of ₹283.85, and an average target price of ₹430.00 (spread +51.49%).

Why the FY26 print matters for investors

The FY26 numbers show sustained growth in revenue from operations and improved adjusted EBITDA on a consolidated basis. At the same time, the earnings call underlined that cash conversion and working capital management are a key investor focus, reflected in questions on receivables, capitalised development costs, and operating cash flow differences across standalone versus consolidated entities.

The combination of strong reported growth, stated plans to invest in product development (including AI initiatives), and near-term operational priorities such as cash flow improvement sets the context for how the market will read FY27 execution. The company’s guidance of 25% to 30% standalone growth, along with commentary around consolidated EBITDA guidance pending integration outcomes, will likely remain a key reference point in subsequent quarters.

Conclusion

Zaggle closed FY26 with consolidated revenue from operations of ₹19,076.5 million and adjusted EBITDA of ₹1,915.9 million, with Q4 FY26 showing 49.9% YoY revenue growth. Management’s near-term focus remains on improving operating cash flow, integrating acquired assets, and progressing product development and international expansion. The company indicated it would revisit EBITDA guidance after integration work completes over the next few months and also expects to share further updates on its AI development work in coming quarters.