Zaggle’s net profit shrunk 33% YoY and 57% QoQ to ₹17.5 Cr in Q1 FY27
Operating revenue grew 27.5% YoY to ₹423.3 Cr, albeit this was 31.5% lower on a sequential basis
The fintech SaaS company’s total expenses surged 31.4% YoY to ₹406.7 Cr but were 29% lower QoQ
Fintech SaaS company Zaggle’s net profit for the June quarter (Q1 FY27) dipped 33% to ₹17.5 Cr from ₹26.1 Cr in the year-ago period. Sequentially, the company’s profit plunged by 57% from ₹40.6 Cr.
Operating revenue grew 28% to ₹423.3 Cr from ₹332 Cr in the corresponding quarter of the previous fiscal. However, it declined 32% on a sequential basis from ₹617.9 Cr in Q4 FY26.
Zaggle’s adjusted EBITDA rose 4% YoY to ₹34.7 Cr from ₹33.4 Cr. However, its adjusted EBITDA margins narrowed to 8.2% from 10.1% in the year-ago period.
The company registered other income of ₹6.6 Cr during the quarter under review, bringing its total income to ₹429.9 Cr.
No exceptional items were reported during the quarter, while it earned an additional ₹2.3 Cr in profits from an associate and ₹27.8 Lakh in other comprehensive income, and spent ₹8 Cr on taxes.
Total expenses surged 31% to ₹406.7 Cr in the quarter under review from ₹309.6 Cr in the year-ago period. However, the company’s expenditure narrowed 29% compared to ₹573.7 Cr in Q4 FY26.
“Q1 FY27 marks an important inflection point for Zaggle as we move from a decade of profitable growth into a phase of transformation through consolidation,” founder and executive chairman Raj P Narayanam said.
According to Zaggle, its EBITDA margin fell due to elevated expenses from its acquisition of enterprise spend management startup Dice in May. The company acquired the assets and IP of Pune-based enterprise spend management startup Dice Enterprises in May for a sum of ₹68 Cr. It further noted that revenue from Dice contracts will only reflect from Q2 FY27 onwards.
Furthermore, it also incurred employee costs and other expenses from absorbing credit card fintech Rio.Money, which it had acquired last year and rebranded as ‘Zagg.Money’.
The company also cited shifting previously capitalised expenses into the P&L and implementing salary hikes for existing employees as reasons for its lower profitability.
During the quarter, Zaggle also invested ₹8 Cr to acquire a 20% stake in Unobanc Pvt Ltda wholly owned subsidiary of Hop Financial Solutions, to strengthen its capabilities in cross-border payments, forex cards, and remittances.
“Our focus is now firmly on optimising core operations, scaling AI across our platforms, and integrating our recent acquisitions – all while calibrating our capitalisation and instilling greater cash flow discipline to position the company for higher-margin growth in the years ahead,” Narayanam added.
Zaggle’s stock ended the day 0.22% lower at ₹200.55 apiece on the BSE.