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

Q4 FY26 result snapshot

Zaggle Prepaid Ocean Services reported a sharp improvement in its consolidated quarterly performance for Q4 FY26, led by strong revenue growth and higher operating profitability. Consolidated net profit rose 30.42% year-on-year to Rs 40.60 crore. Revenue from operations increased 49.94% year-on-year to Rs 671.91 crore. The company also reported an improvement in adjusted EBITDA and margin, indicating better operating leverage during the quarter ended 31 March 2026.

Profitability improves with higher operating leverage

Profit before tax (PBT) stood at Rs 54.46 crore in Q4 FY26, up 31.96% from Rs 41.27 crore in Q4 FY25. Adjusted EBITDA for the quarter came in at Rs 60.46 crore, up 62.4% year-on-year. The adjusted EBITDA margin improved to 9.8% in Q4 FY26 from 9% in Q4 FY25. In its commentary, founder and executive chairman Raj P Narayanam said the company delivered its third consecutive quarter of record performance and closed FY26 with its highest-ever quarterly and annual results.

Expense trends: total spend rises, redemption cost falls

Total expenses rose 43.89% year-on-year to Rs 549.77 crore in Q4 FY26. Within this, cost of point redemption was Rs 221.61 crore, down 36.17% year-on-year. Employee benefits expense was Rs 16.46 crore, down 3.46% year-on-year. The combination of rising topline and a lower redemption cost line item supported the quarter’s margin expansion as reported by the company.

Full-year FY26 performance

On an annual basis, Zaggle reported consolidated revenue of Rs 1,907.6 crore, up 46.3% year-on-year. Adjusted EBITDA was Rs 191.6 crore, up 51% year-on-year. Profit after tax (PAT) was Rs 138.8 crore, up 51.8% year-on-year. The company’s quarterly and annual numbers were also reiterated in an additional business update, which referenced consolidated quarterly revenue of about Rs 618 crore, adjusted EBITDA of around Rs 60 crore and PAT of around Rs 41 crore.

Strategy updates: AI execution, product expansion, and acquisitions

Management outlined a shift from an AI-led vision to “full-scale execution” with dual AI engines, one focused on internal efficiency and another designed for customer-facing capabilities. During FY26, the company completed acquisitions of Greenedge Enterprises and Rivpe Technology, which was rebranded as Zagg.Money. Zaggle also said it entered the consumer retail credit card market during the year. In addition, it established Zaggle Payments IFSC Ltd in GIFT City, positioning it as a platform for cross-border payments and financial services through India’s international financial hub.

New agreements disclosed on May 13, 2026

Zaggle informed that it entered into three agreements on May 13, 2026: an Asset Purchase Agreement (Contracts), an Intellectual Property Assignment Agreement, and an Asset Purchase Agreement (Software). The company did not provide financial consideration details in the provided update, but the disclosure adds to its stated inorganic growth plans.

FY27 guidance: growth outlook provided

Looking ahead, the company guided for standalone revenue growth of 25-30% in FY27. It also projected consolidated revenue growth of around 40% for FY27. Management linked this outlook to AI-first product development, expansion into MENA and US markets, and deeper monetisation across its “four strategic pillars,” as stated in the update.

Stock market reaction

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

Company profile and business model

Zaggle positions itself as a spend management player operating in a business-to-business-to-customer (B2B2C) model. It partners with banking partners for prepaid card issuance and is described as having one of the largest numbers of issued prepaid cards in India. The company also has a portfolio of software-as-a-service products, including tax and payroll software, and a broad touchpoint reach.

Key numbers table

Why the update matters

The Q4 FY26 print combines a near-50% revenue expansion with faster growth in adjusted EBITDA, resulting in an improved margin. The expense mix disclosed for the quarter highlights that point redemption costs and employee benefits expense declined year-on-year, even as total expenses grew with scale. Alongside the financials, the company’s disclosures around acquisitions, a new IFSC entity in GIFT City, and entry into consumer retail credit cards provide context on how it is broadening products and operating footprint.

Conclusion

Zaggle ended Q4 FY26 with consolidated revenue of Rs 671.91 crore and PAT of Rs 40.60 crore, with adjusted EBITDA margin improving to 9.8%. The company has also disclosed new agreements dated May 13, 2026 and reiterated FY27 growth guidance of 25-30% standalone and around 40% consolidated revenue growth, alongside its AI and expansion plans.