Zaggle Prepaid Ocean Services (ZAGGLE) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached INR 3,319.65 million, up 31.4% year-over-year, marking the best first-quarter performance to date, with adjusted EBITDA at INR 327.2 million (27.9% growth) and PAT at INR 261.11 million (54.8% growth).

• Adjusted EBITDA margin stood at 9.9% and PAT margin at 7.8% for Q1 FY26.

• Growth was driven by product innovation, strategic collaborations, acquisitions, and operational leverage, with AI initiatives enhancing efficiency.

• Over 3,500 customers served, churn rate below 1.5%, and 3.4 million users on the platform.

• Board approved unaudited financial results and scheduled the 14th AGM for September 18, 2025.

Financial highlights

• Revenue from operations for Q1 FY26 was INR 3,319.65 million, up 31.4% year-over-year; Propel platform revenue surged 50.6% YoY, SaaS fee up 19.8% YoY.

• Adjusted EBITDA reached INR 327.2 million, up from INR 256 million in Q1 FY25.

• PAT increased to INR 261.11 million from INR 167.34 million, a 54.8% YoY rise; cash PAT up 57.6% YoY to INR 346.7 million.

• Gross profit for Q1 FY26 was INR 1,637.1 million, with a margin of 49.4%.

• Basic EPS (consolidated) was 1.94, up from 1.37 year-over-year.

Outlook and guidance

• Maintains overall growth guidance of 35-40% for FY26, with EBITDA margin projected between 10% and 11%.

• Program fees also guided at 35-40% growth for the year, with Q1 impacted by seasonality and geopolitical factors.

• EBITDA margin expected to improve by 100 bps annually over the next three years, driven by operating leverage and AI efficiencies.

• Anticipates significant momentum for TaxSpanner in Q2 FY26 due to tax filing deadline extension.

• Unutilized IPO and QIP proceeds remain invested in deposits and monitoring accounts, supporting future growth and acquisitions.