Zaggle Prepaid gains after Q1 PAT spurts 55% YoY to Rs 26 cr

Zaggle Prepaid Ocean Services jumped 7.12% to Rs 393.45 after the company's standalone net profit surged 54.8% to Rs 25.88 crore on a 31.4% increase in revenue from operations to Rs 331.49 crore in Q1 FY26 over Q1 FY25.

Profit before tax (PBT) rose 51.8% YoY to Rs 34.56 crore in Q1 FY26 from Rs 22.76 crore recorded in Q1 FY25.

Reported EBITDA stood at Rs 30.90 crore in Q1 FY26, registering a growth of 37.7% compared with the Rs 22.43 crore posted in the same quarter last year. The reported EBITDA margin improved to 9.3% in Q1 FY26 as against 8.9% in Q1 FY25.

Raj P Narayanam, founder and executive chairman of Zaggle Prepaid Ocean Services, said, I am delighted to share that we have begun the year on a solid note, with Q1FY26 revenues reaching INR3,314.9 Mn, a 31.4% YoY growth, along with an adjusted EBITDA margin of 9.9% and a PAT margin of 7.8%. This is by far our best first-quarter performance, despite being a slower quarter in the year.

With strong fundamentals in terms of growth in the total number of customers and users, healthy growth was visible across our revenue streams. Our recent strategic customer wins, such as Hindustan Pencils, ApolloHealth, Mo Engage, Novozymes, DTDC, CK Birla Healthcare, Truecaller, etc., reinforce our value proposition. We are unlocking new levels of scale and efficiency with AI at the core of our product strategy. Our AI initiatives in multiple areas, including sales automation, customer support & engagement, and bill processing, are at various stages of deployment.

Our inorganic growth plans are panning out the way we had envisioned, and we are already seeing encouraging results in existing investments. Moblieware delivered a stellar performance in Q1FY26. For TaxSpanner, we anticipate significant momentum to kick in in Q2 FY26 on account of an extension in the tax filing deadline. We would like to reiterate our guidance for the year, with topline growth expected in the range of 35% to 40% and EBITDA margins projected between 10% and 11%.

Zaggle Prepaid Ocean Services (Zaggle) is a leading player in spend management, with a differentiated value proposition and diversified user base. The company operates in the business-to-business-to-customer segment. It is one of the largest numbers of issued prepaid cards in India in partnership with its banking partners. Additionally, the company has a diversified portfolio of software as a service (SaaS) products, including tax and payroll software, and a wide touchpoint reach.

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