Zaggle Prepaid Ocean Services reported its best-ever quarterly and nine-month performance for Q3 FY26, ending December 31, 2025. Quarterly revenue reached INR 498 crores, marking a 48% Y-o-Y growth. Adjusted EBITDA crossed INR 50 crores for the first time, growing 63% Y-o-Y, while PAT surged 78% Y-o-Y to INR 36 crores. The company is seeing strong traction in AI integration and international expansion.
Q3 FY26 Financial Highlights
Zaggle Prepaid Ocean Services Limited announced a record performance for the quarter and nine months ending December 31, 2025. Quarter-over-quarter, the company’s performance compared favorably to Q3 FY’25:
- Revenue reached INR 498 crores, growing approximately 48% on a Year-over-Year (Y-o-Y) basis.
- Adjusted EBITDA crossed the INR 50 crore mark for the first time, achieving INR 51 crores, reflecting 63% Y-o-Y growth.
- Profit After Tax (PAT) grew significantly by around 78% Y-o-Y to INR 36 crores.
Nine-Month Performance Review
For the first nine months of FY’26, the performance trajectory continued strongly:
- Revenues were reported at approximately INR 1,260 crores, a 41% Y-o-Y growth.
- Adjusted EBITDA stood at around INR 128 crores, showing a 48% Y-o-Y increase.
- PAT surged to INR 95 crores, marking a significant growth of about 71%.
Strategic Operational & Technology Updates
AI Integration and Development Velocity
Management highlighted a successful transition from discussing AI’s potential to operationalizing it through Agentic AI workflows. This innovation significantly impacts agility:
- Product feature development time has been cut from traditionally 75-plus days to less than 30 days conservatively, with a goal to reduce it to under 10 days.
- A key use case for AI is automating complex tasks like vendor reconciliation, which is described as a major headache for large enterprises.
Acquisitions and Growth Pillars
The company provided updates on its recent strategic integrations:
- The acquisition of Rio.money is complete and has been rebranded as ZAG.money, establishing the 4th monetization pillar with a captive user base of 3.7 million salaried users. A capital infusion of over INR 100-plus crores has been earmarked to accelerate revenue targets for this segment.
- Greenedge delivered strong Q3 FY’26 revenue of INR 29 crores, scaling its 9-month FY’26 revenue to INR 65 crores (up from INR 36 crores in FY’25).
- Mobileware (rebranded as 86400) has seen revenue surge from INR 17 crores in FY’24 to over INR 50 crores YTD FY’26, securing 11 new partnerships with banks and fintechs.
- TaxSpanner is expected to deliver significant growth in FY’27, leveraging proposed regulatory changes favorable to meal and gift allowances.
International Expansion and Partnerships
Zaggle is actively pursuing global expansion:
- The Board approved incorporating a wholly-owned subsidiary in GIFT City, Zaggle Payments IFSC Limited.
- The company is finalizing steps to establish an entity in the UAE, narrowing focus down to Abu Dhabi as the operational base for the MENA region.
- Partnerships were deepened with Visa (signing a 7-year agreement for co-branded prepaid cards) and Mastercard (signing a 5-year contract for credit cards).
Key Metrics and Outlook
During the Q&A, management reaffirmed guidance:
- Incentive and cashback spend, currently high at 67% of program fees (seasonally driven), is expected to stabilize near 50% over a medium-term horizon of about 5 years.
- The company expects to achieve cash breakeven in Q4 FY’26 and become Operating Cash Flow (OCF) positive in FY’27.
- Management noted they are currently not looking at diluting any further equity, citing sufficient cash reserves raised previously for acquisition purposes.
Source: BSE
