Results · Financial Services

Zaggle shares fall 19% despite strong Q4 results

What they do

Zaggle provides spend management, rewards, and payment solutions to corporate clients

Q4 FY26 net profit rose 30.4% YoY to ₹40.6 Cr, revenue grew 49.9% to ₹617.9 Cr

Shares dropped 19% intraday as cashback expenses rose and EBITDA margin fell sequentially

Zaggle shares fell 19% intraday to ₹230.5 on BSE after Q4 results.
The stock hit a 20% lower circuit at ₹227.6 and closed at that level.
Market capitalisation at session end was ₹3,060.9 Cr ($319.6 Mn).
Q4 FY26 consolidated net profit was ₹40.6 Cr, up 30.4% YoY from ₹31.1 Cr.
Revenue from operations was ₹617.9 Cr, up 49.9% YoY from ₹412.2 Cr.
Adjusted EBITDA was ₹60.5 Cr, up 62.4% YoY, with margin at 9.8%.
Total expenses rose 49.6% YoY to ₹573.7 Cr, driven by incentive and cashback costs of ₹152.1 Cr.
Full-year FY26 profit was ₹138.6 Cr, up 57.9% YoY; revenue was ₹1,907.6 Cr, up 46.3% YoY.

The stock decline came despite profit and revenue growth, as investors focused on rising cashback expenses and a slight sequential dip in EBITDA margin.
JM Financial maintained a 'Buy' rating with a target price of ₹380, citing margin expansion and traction in new products.
Zaggle said cashback expenses will keep rising until the customer cohort matures and expectations of subsidies normalise.

Zaggle is a spend management and rewards platform for corporate clients.
It operates the Propel platform (revenue ₹357.8 Cr in Q4, up 46% YoY) for employee rewards and incentives.
It earns program fees (₹221.8 Cr, up 41.2% YoY) and software fees (₹13.1 Cr, up 40.5% YoY).
Total corporate customers at FY26 end: 3,915, up 13.3% YoY.
Aggregate users on platform: 3.9 Mn, up 18.2% YoY.
In FY26, it acquired GreenEdge Enterprises and Rivpe Technology (rebranded as Zagg.Money) to enter consumer retail credit cards and strengthen UPI.
It set up Zaggle Payments IFSC Ltd in GIFT City for international payments and cross-border business.

FY27 guidance: standalone revenue growth 25-30%, consolidated revenue growth ~40%.
Growth drivers include AI-first product development, expansion into MENA and US markets, and deeper monetisation.