Zaggle Q2 Profit Falls About 30% to Rs 24.5 Crore
Zaggle's consolidated revenue from operations rose 34.2% to Rs 579.9 crore in Q2 FY27, while its profit fell to Rs 24.5 crore.
Key Takeaways
- Q2 FY27 consolidated profit fell about 30% to Rs 24.5 crore from Rs 35.0 crore in Q2 FY26.
- Revenue from operations rose 34.2% to Rs 579.9 crore from Rs 432.2 crore.
- Against Q1 FY27, profit rose about 40% from Rs 17.5 crore.
- Adjusted EBITDA slipped about 4% to Rs 44.6 crore, with the margin at 7.7%.
- Zaggle said operating cash flow turned positive at standalone and consolidated levels.
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Zaggle Prepaid Ocean Services said its consolidated profit for the July to September quarter (Q2 FY27) fell about 30% to Rs 24.5 crore, from Rs 35.0 crore in the same quarter a year earlier (Q2 FY26). Consolidated revenue from operations rose 34.2% to Rs 579.9 crore, from Rs 432.2 crore.
Against the previous quarter (Q1 FY27), profit rose about 40% from Rs 17.5 crore, and revenue rose about 37% from about Rs 423 crore. Profit before tax fell about 31% to Rs 31.8 crore from Rs 46.2 crore a year earlier, and adjusted EBITDA slipped about 4% to Rs 44.6 crore from Rs 46.5 crore.
Zaggle Q2 FY27 at a glance
| Detail | Value (consolidated) |
|---|---|
| Quarter | July to September 2026 (Q2 FY27) |
| Revenue from operations | Rs 579.9 crore, up 34.2% from Rs 432.2 crore |
| Other income | Rs 6.3 crore |
| Total income | Rs 586.2 crore |
| Adjusted EBITDA | Rs 44.6 crore, down from Rs 46.5 crore |
| Adjusted EBITDA margin | 7.7%, down from 10.8% |
| Profit before tax | Rs 31.8 crore, down from Rs 46.2 crore |
| Tax expense | Rs 7.3 crore |
| Profit after tax | Rs 24.5 crore, down about 30% from Rs 35.0 crore |
Why Zaggle's profit fell while revenue grew
Zaggle is a fintech SaaS company. In its results presentation, Zaggle said employee expenses rose mainly because of staff added through the Dice acquisition, and other expenses rose largely because of marketing costs and user acquisition costs. Adjusted EBITDA margin narrowed by about 310 basis points to 7.7%.
The company said its SaaS revenue had its highest-ever quarter, driven largely by revenue from customer contracts moved over (novated) after the Dice acquisition. Zaggle said about 70% of Dice's customer contracts have been novated so far. Cashback was 66.2% of program fees in the quarter, the company said.
| When | What happened (consolidated) |
|---|---|
| Q2 FY26 (July to September 2025) | Revenue from operations of Rs 432.2 crore and profit of Rs 35.0 crore |
| Q1 FY27 (April to June 2026) | Revenue from operations of about Rs 423 crore and profit of Rs 17.5 crore |
| Q2 FY27 (July to September 2026) | Revenue from operations of Rs 579.9 crore and profit of Rs 24.5 crore |
Zaggle's first half of FY27 in numbers
For the six months to 30 September 2026 (H1 FY27), Zaggle's consolidated revenue from operations rose 31.3% to Rs 1,003.1 crore, from Rs 764.2 crore in H1 FY26. Profit before tax for the half year was Rs 57.3 crore and profit after tax was Rs 42.0 crore, both lower than in H1 FY26. Adjusted EBITDA for the half year was Rs 79.3 crore.
What Zaggle said about cash flow and new markets
Zaggle said its operating cash flow turned positive in Q2 FY27 at both the standalone and consolidated levels. Founder and Executive Chairman Raj P Narayanam said the company saw strong demand in its loyalty and rewards business during the quarter.
The company said it is focusing on wider use of its co-branded credit cards and UPI offerings. It also said it has set up Zaggle Holdings Limited in Abu Dhabi Global Market (ADGM) as part of expanding its international presence.
Where Zaggle stands after Q2 FY27
Zaggle closed the September quarter with consolidated revenue from operations of Rs 579.9 crore, up 34.2% from a year earlier, and profit of Rs 24.5 crore, down about 30%. Over the first half of FY27, its revenue from operations crossed Rs 1,000 crore at Rs 1,003.1 crore. The company said its operating cash flow turned positive in the quarter and that it has set up Zaggle Holdings Limited in ADGM.
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