Results · Financial Services

Zaggle Q1 profit falls 33% despite 28% revenue rise

By Startup Enthusiast · 14 August 2026

What they do

Q1 FY27 net profit dropped 33% YoY to ₹17.5 Cr, while operating revenue rose 28% to ₹423.3 Cr

Profit decline was driven by Dice acquisition costs and accounting changes; adjusted EBITDA margin fell to 8.2%

Brokerage Equirus maintained a 'LONG' rating but cut its target to ₹350 and lowered FY27 earnings estimates by 21%

Zaggle released Q1 FY27 financial results on 14 Aug 2026 showing mixed performance metrics.
Net profit declined 33% year-on-year to ₹17.5 Cr from ₹26.1 Cr in the same period last year.
Sequential profit fell sharply by 57% compared to ₹40.6 Cr reported in Q4 FY26.
Operating revenue grew 28% year-on-year to ₹423.3 Cr, up from ₹332 Cr in Q1 FY26.
Revenue also dropped sequentially by 32% from ₹617.9 Cr in the previous quarter.
Adjusted EBITDA increased slightly by 4% to ₹34.7 Cr with margins contracting to 8.2%.
Reported EBITDA saw minimal growth of 1.3% reaching ₹30.9 Cr with a margin of 7.3%.
The company retained its FY27 revenue growth target at approximately 40% despite current headwinds.

Profit erosion is attributed to costs from the recent Dice acquisition and integration expenses.
Accounting changes pushed previously capitalised expenses directly into the Profit and Loss statement.
Salary increments for existing staff further contributed to increased employee costs during the quarter.
Brokerage firm Equirus cut its rating to 'LONG' and lowered earnings estimates by 21%.
Stock price suffered significant losses, falling 56.3% over the past year as of mid-August.

Zaggle operates an enterprise spend management platform helping companies manage corporate payments efficiently.
Revenue breakdown includes ₹160 Cr from programme fees and ₹250.7 Cr from Propel/gift cards.
Platform, SaaS, and service revenues contributed ₹12.5 Cr to the total quarterly income.
Incentive and cashback costs represented 66.3% of revenue, improving from 69% in the prior quarter.
The company acquired Dice assets in May 2026 for ₹68 Cr to expand its capabilities.
Dice brings enterprise clients such as Hindalco, IDFC First Bank, and Lenskart to Zaggle.
Integration of Zagg.Money involved absorbing credit card fintech operations from Rio.Money.
Focus areas include optimising core operations and scaling AI across all business platforms.
The company aims to maintain strict cash flow discipline while integrating new acquisitions effectively.

Zaggle plans to scale AI technologies across its various business platforms in the coming quarters.
The company intends to fully integrate the acquired Dice assets starting from Q2 FY27.
Management will focus on calibrating capitalisation strategies to improve overall financial efficiency.
Cash flow discipline remains a key priority alongside operational optimisation efforts.

Unobanc Pvt Ltd (portfolio) — Zaggle invested **₹8 Cr** for a **20%** stake in this subsidiary of Hop Financial Solutions.