Zaggle Prepaid Ocean Services (ZAGGLE) Q2 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 3,026 million in Q2 FY25, up 64.2% year-over-year, and H1 FY25 revenue of INR 5,547.6 million, up 83.3% year-over-year, surpassing guidance and reflecting strong business momentum.

• Adjusted EBITDA for Q2 FY25 reached INR 295.2 million (up 36% YoY); PAT at INR 186 million (up 144.7% YoY); H1 FY25 PAT at INR 352.8 million (up 266% YoY); cash PAT rose 43% to INR 238.17 million.

• Customer base expanded to 3,213 corporates and 3.03 million users as of H1 FY25, with major client additions such as HDFC ERGO, Baroda BNP Paribas AMC, Blue Star, BigBasket, and Torrent Gas.

• Strategic acquisitions included TaxSpanner, investment in Mobileware Technologies, and completion of 53.32% additional stake in Span Across IT Solutions, making it a subsidiary.

• Board approved fundraise up to INR 950 crores (Rs. 9,500 Mn) for organic and inorganic growth, including international expansion, subject to shareholder approval.

Financial highlights

• Q2 FY25 revenue: INR 3,026 million, up 64.2% year-over-year; H1 FY25: INR 5,547.6 million, up 83.3% year-over-year.

• Adjusted EBITDA: INR 295.2 million in Q2 FY25 (up 36% YoY); H1 FY25: INR 551 million (up 55% YoY); reported EBITDA: INR 267 million.

• PAT for Q2 FY25: INR 186 million (up 144.7% YoY); H1 FY25: INR 352.8 million (up 266% YoY); cash PAT for H1 FY25: INR 458.2 million, up 72.2% YoY.

• Gross profit margin improved to 46.5% in Q2 FY25 from 38.1% in Q2 FY24.

• Basic EPS for H1 FY25 at 2.87; Diluted at 2.85.

Outlook and guidance

• FY25 top-line growth guidance raised to 50%-55%, up from previous 45%-55%.

• Confident in doubling FY24 revenues within two years.

• Strategic focus on M&A in SaaS fintech, NBFC, and payments; exploring both small tuck-ins and larger investments.

• Committed to margin protection and expansion as scale increases.

• IPO proceeds unutilised as of September 30, 2024, are temporarily invested in deposits with scheduled commercial banks and monitoring agency accounts.