Zaggle Q1 profit jumps on higher revenue and despite increasing employee expenses

Zaggle Prepaid Ocean Services reported a 54.8% year-on-year increase in profit for the June quarter, helped by robust revenue growth and marginally lower other expenses.

Net profit rose to Rs 25.88 crore in Q1 FY26 from Rs 16.72 crore a year earlier. Revenue from operations climbed 31.4% to Rs 331.49 crore, while total income rose 33.7% to Rs 343.20 crore as per the standalone financial results.

Operating performance was aided by controlled spending in some areas. Other expenses fell 1.1% to Rs 330.9 crore, partially offsetting higher employee benefits expense, which rose 20.2% to Rs 16.94 crore. Incentives and cashback costs increased 6.6% to Rs 95.56 crore, while the cost of point redemption and gift cards surged 51.9% to Rs 167.78 crore.

Total expenses were Rs 308.64 crore, up 31.9% from Rs 233.97 crore a year earlier.

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Zaggle Prepaid Ocean Services outlined growth drivers beyond headline numbers for the June quarter, pointing to an AI-first product roadmap, fresh enterprise logos, and multi-year partnerships while maintaining full-year guidance. The company reiterated its outlook of 35-40% topline growth and 10-11% EBITDA margins for FY26.

Founder and Executive Chairman Raj P. Narayanam said the company is “unlocking new levels of scale and efficiency with AI at the core of our product strategy,” citing deployments across sales automation, customer support and bill processing. “We would like to reiterate our guidance for the year,” he added.

Operational KPIs improved: corporate customers rose to 3,559 (up 14% year-on-year) and platform users to 3.3 million (up 17.3%). Revenue mix skewed toward program fees, which jumped 50.6% YoY, while software fees rose 14.6% and the Propel loyalty platform advanced 19.8%. Management also highlighted seasonality, with Q3 and Q4 historically the stronger revenue quarters.