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    Zaggle Prepaid Ocean Services Q1 FY27 earnings call

    ZAGGLE
    Information Technology·14 Aug 2026
    Management Summary

    Zaggle Prepaid Ocean Services Limited reported a robust 28% YoY revenue growth in Q1 FY27, reaching INR423 crores, driven by both standalone business and strong subsidiary performance. However, adjusted EBITDA margin compressed to 8.2% due to integration costs from the DICE acquisition and a shift in capitalization policy. The company made a strategic investment in Unobanc and saw significant traction in Zagg.Money and its subsidiaries, 86400 and GreenEdge, while maintaining its 40% consolidated growth guidance for FY27.

    Highlights

    7

    • Total revenue grew 28% YoY to INR423 crores in Q1 FY27, demonstrating strong top-line momentum.

    • Standalone business showed resilient 18% YoY growth to INR390 crores despite Q1 being a soft quarter.

    • Strategic investment in Unobanc (moneyHOP) aligns with Save and Zoyer products, enabling cross-border payments and remittances.

    • DICE acquisition completed at an optimized cost of INR68 crores, bringing 100 AI professionals and a full spend management product suite.

    • Zagg.Money's annualized card run rate increased 2.3x to 84,000 cards, indicating strong traction in the credit card on UPI ecosystem.

    • 86400 (Mobileware) revenue grew 29% YoY to INR22 crores and EBITDA grew 214% YoY to INR8.8 crores, driven by UPI transaction volumes.

    • GreenEdge revenue grew 160% YoY to INR44 crores and EBITDA grew 66% YoY to INR4.3 crores.

    Concerns

    4

    • Adjusted EBITDA margin compressed to 8.2% in Q1 FY27 from 10.1% in Q1 FY26, primarily due to DICE acquisition costs and capitalization policy changes.

    • Cost base, including employee and other expenses, increased by approximately 25% QoQ (Q1 FY27 vs Q4 FY26).

    • Program fees growth slowed to 10% in Q1 FY27, which management attributes to a deliberate focus on cash flow optimization and calibrated capitalization.

    • Relocation costs for DICE employees and one-time tech vendor payments impacted Q1 FY27 expenses, with revenue from novated DICE contracts only starting from Q2 FY27.

    Key financials

    Single quarter

    07 metrics
    1. 01Total Revenue₹423 Cr+28.0%YoY
    2. 02Standalone Revenue₹390 Cr+18%YoY
    3. 03Adjusted EBITDA₹34.7 Cr
    4. 04Adjusted EBITDA Margin8.2%
    5. 05Propel Points Margin (Consolidated)7.1%

    Segment breakdown

    • 86400 (Mobileware)₹22 Cr32.9%
    • GreenEdge₹44 Cr65.9%
    • TaxSpanner₹0.8 Cr1.2%
    Donut· Share of Revenue

    Order Book

    medium confidence

    Pipeline

    deal pipeline tcv

    Large pipeline for Save business for Q2 and forward.

    "Management expects growth to accelerate through Q2 and the remainder of the fiscal year, with a healthy pipeline for new customer acquisitions."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    M&A

    Unobanc Private Limited (moneyHOP)

    acquisition · closed · Consideration ₹NaN (cash)

    M&A

    DICE

    acquisition · closed · Consideration ₹NaN (cash)

    M&A

    Rio.Money (Zagg.Money)

    acquisition · integrated

    Guidance & targets

    8
    CategoryTargetPriority
    Revenue
    Consolidated Revenue Growth
    40%
    		High
    Revenue
    DICE Revenue
    INR15 crores to INR16 crores
    		High
    Revenue
    Program Fees Growth
    Significant improvement
    		Medium
    Profitability
    EBITDA Margin
    14% to 15%
    		Medium
    Profitability
    TaxSpanner Breakeven
    Breakeven
    		High
    Cash Flow
    Operating Cash Flow
    Improvement
    		Medium
    Expenses
    Employee Costs
    Go up
    		High
    Expenses
    Other Expenses
    Taper down
    		High

    What to watch in Q2 FY27

    5

    DICE Revenue Realization

    Q2 FY27
    CurrentZero in Q1 FY27
    TargetRevenue contribution from Q2 FY27 onwards

    Why it matters

    DICE acquisition costs impacted Q1 margins; revenue realization is crucial for margin recovery and overall growth.

    The contract novation of around 85-plus clients is underway, and we should complete by the end of Q2 FY27. One point I would like to reiterate, the revenue accruing from these contracts has not been realized in Q1 FY27 and will only start from Q2 onwards as part of the deal.

    Risks & concerns

    4
    RiskSeverity

    EBITDA margin compression due to acquisition costs and policy changes

    Adjusted EBITDA margin declined to 8.2% from 10.1% YoY, impacted by DICE acquisition costs, moderated expense push, and employee increments. — Management acknowledged

    medium

    Gestation period for cash flow and incentive cost improvements

    Strategic actions to improve cash flow and optimize incentive costs require time to show full results. — Analyst acknowledged

    medium

    Regional volatility impacting international expansion

    While opening a subsidiary in ADGM, management remains mindful of regional volatility. — Management acknowledged

    low

    Impact of geopolitical tailwinds on travel spend

    Geopolitical tailwinds have had an impact on overall travel spend, affecting program fees. — Management acknowledged

    low

    Q&A highlights

    7

    “Our guidance was 40% on a consolidated basis, and we are not moving away from that guidance as yet.”

    Addresses analyst concern about Q1 revenue growth being lower than historical and full-year guidance, clarifying that Q1 is seasonal and DICE revenue will kick in from Q2.

    asked by Siva

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Overview

    Zaggle Prepaid Ocean Services Limited reported a total revenue of INR423 crores in Q1 FY27, marking a 28% year-on-year growth compared to Q1 FY26. The standalone business contributed INR390 crores, an 18% expansion over the previous year, demonstrating resilience despite Q1 being a seasonally soft quarter. Adjusted EBITDA stood at INR34.7 crores, with the margin at 8.2%, a decrease from 10.1% in Q1 FY26, primarily due to strategic transitions and increased costs.

    02

    Strategic Acquisitions and Investments

    The company made a strategic investment of INR8 crores in Unobanc Private Limited (moneyHOP), which holds an AD Category 2 license, enabling cross-border payments and forex services. The acquisition of DICE was completed for INR68 crores, significantly optimized from an initial INR123 crores valuation, securing a complete spend management product suite and 100 AI professionals. Revenue from DICE contracts is expected to commence from Q2 FY27, with full pickup by Q3 FY27 after contract novation.

    03

    Subsidiary Performance Highlights

    86400 (Mobileware) demonstrated strong growth, with revenue increasing 29% YoY to INR22 crores and EBITDA surging 214% YoY to INR8.8 crores, driven by UPI transaction volumes. GreenEdge also performed exceptionally, growing revenue by 160% YoY to INR44 crores and EBITDA by 66% YoY to INR4.3 crores. TaxSpanner reported INR80 lakhs in revenue, a 65% increase over Q1 FY26, and is on track to breakeven this fiscal year.

    04

    Focus on Cash Flow and Capitalization

    Management emphasized a shift from a purely profitable growth paradigm to a more focused approach on improving cash flows and calibrating capitalization. This involved a deliberate moderation of new capitalization levels in Q1 FY27 and a strategic decision to move some customers to banks with faster revenue realization. The company is reviewing and updating its capitalization policies to better reflect run-rate costs in the P&L.

    05

    AI Integration and Future Outlook

    The acquisition of DICE is pivotal for Zaggle's technology roadmap, accelerating AI capabilities across Save and Zoyer products. AI-driven expertise is enhancing automated spend analytics, intelligent approval workflows, and predictive expense management. This positions Zaggle for global expansion into markets like UAE and U.S., with an Investors Day planned to showcase these AI capabilities. The company aims for a 14-15% EBITDA margin over the next 5-7 years, driven by these strategic initiatives.

    06

    Zagg.Money and Fleet Business Traction

    Zagg.Money (formerly Rio.Money) saw its annualized run rate for new card acquisitions increase 2.3x to 84,000 cards. The company launched a Twin co-brand card with Punjab National Bank and went live with AU Small Finance Bank. In the fleet business, total transactions increased by 43% and transaction value by 5.8%, reaching an annualized spend rate of INR100 crores. A 5-year agreement was signed with HPCL to aggregate their Driver Track Plus program.

    This is an AI-generated summary of a publicly available earnings call transcript.