Zaggle Prepaid Ocean Services (ZAGGLE) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-yearly revenue and profit growth in Q2 and H1 FY26, with strong adjusted EBITDA margins and Board approval of unaudited results.

• Expanded user base to over 3.5 million and more than 3,600 customers, with significant cross-sell momentum and new marquee client wins.

• Launched innovative products and entered new partnerships, including retail co-branded credit cards, Zaggle GlobalPay Forex Card, and AU Small Finance Bank partnership.

• Broadened banking partner network, now covering commercial credit cards, prepaid cards, retail cards, and UPI.

• Acquisition of 55.56% stake in Greenedge Enterprises completed, making it a subsidiary.

Financial highlights

• Q2 FY26 consolidated revenue reached ₹4,322.16 million, up 42.4% YoY; adjusted EBITDA at ₹437 million, up 48.1% YoY; PAT at ₹349.84 million, up 79.1% YoY.

• H1 FY26 consolidated revenue at ₹7,641.81 million, up 37.4% YoY; adjusted EBITDA at ₹765 million, up 38.8% YoY; PAT at ₹610.89 million, up 68% YoY.

• Cashback expenses surged 70% YoY to ₹400 million in Q2; H1 cashback at ₹750 million, up 63.9% YoY.

• Cash and cash equivalents rose to ₹768 million; bank balances (other than cash) at ₹4,963 million as of September 30, 2025.

• Net cash used in operating activities (consolidated) for H1 FY26 was ₹343.62 million; net increase in cash and cash equivalents was ₹389 million.

Outlook and guidance

• Revenue growth guidance raised to 40%-45% for the year; EBITDA margin guidance maintained at 10%-11%.

• Targeting 14%-15% adjusted EBITDA margin over the next four to five years.

• Retail co-branded card business expected to contribute ₹500 million revenue and ₹50-60 million EBITDA annually by year five.

• Operating cash flow expected to break even in FY26 and turn positive from FY27.

• Board approved issuance of 1,058,201 convertible warrants at ₹567 per warrant, aggregating to ₹600 million, pending stock exchange approval.