Zaggle Prepaid

Zaggle Prepaid Ocean Services Limited achieved its strongest annual financial performance in FY26. Consolidated revenue grew 46% YoY to INR 1,908 crores, with adjusted EBITDA increasing 51% YoY to INR 192 crores, and PAT surging 52% to INR 139 crores. Standalone results also showed robust growth, with revenue at INR 1,853 crores (up 42%) and PAT at INR 133 crores (up 52%). This performance was driven by healthy growth across various business segments.

In FY26, Zaggle completed two strategic acquisitions: GreenEdge Enterprises and Rio.Money (rebranded Zagg.money). A significant development was the asset purchase of DICE for INR 68 crores (excluding GST), an optimization from the initial INR 123 crores valuation. This acquisition integrates advanced AI capabilities and over 100 AI-skilled professionals, positioning Zaggle to lead in travel, expense, and procure-to-pay markets with high-margin SaaS revenue (95% gross margin). The previously planned acquisition of EffiaSoft was abandoned due to reassessment in the AI landscape.

Key business verticals demonstrated strong growth. GreenEdge, which manages golf privileges and reward programs, saw its revenue grow 184% from INR 36.54 crores in FY25 to INR 103.7 crores in FY26. 86400 (Mobileware) revenues increased 118% from INR 34 crores in FY25 to INR 74 crores in FY26, fueled by growing UPI volumes. The company also reported an annualized run rate of 36,000 to 40,000 new card acquisitions for Zagg.money within an 8-week period, indicating strong market fit.

Management is intensely focused on improving operating cash flow, which currently stands at a negative INR 6 crores, with a clear target to achieve positive cash flow in the coming quarters. This focus has led to a decline in Propel margins from 10% in Q4 FY25 to 4% in Q4 FY26, as the company shifts away from cash-absorbing redemption models. However, management aims to restore Propel margins to around 5.5% in the coming years. Trade receivables increased to INR 129 crores, and efforts are underway to optimize this aspect of working capital.

Zaggle is strategically leveraging AI to enhance product development and operational efficiency. The company aims to reduce feature launch times by up to 50% and deploy autonomous agents across its ecosystem. Investment in deep vertical AI and small language models, specifically trained on compliance frameworks, is planned to support global expansion and localized financial intelligence. Capitalized development costs, primarily for new product development and largely comprising people costs, nearly doubled from INR 30 crores in H1 to INR 56 crores in H2 FY26.

The company remains committed to its global expansion strategy, identifying the UAE as a primary growth pillar. However, go-live readiness in the UAE is contingent on regional stability. Entry into the US market is progressing, with operations on track to kick-start by financial year-end, leveraging the newly acquired AI-powered suite from DICE to address multicurrency and high-compliance demands. This timeline for the US market was pushed back by a couple of quarters from the initial June 2026 target.

For FY27, Zaggle projects standalone revenue growth of 25-30% and consolidated revenue growth of 40%. EBITDA guidance for FY27 will be provided after the DICE integration is fully complete. The company maintains its long-term EBITDA margin guidance of 14-15% over the next five years, acknowledging that there might be temporary variations during the integration and ramp-up phases. Management sees significant opportunities from global expansion and AI-driven innovation to achieve these long-term targets.