Zaggle Prepaid Q2 results: Profit falls, expenses surge nearly 40% year-on-year

Zaggle Prepaid Ocean Services reported a 30.1% year-on-year decline in Q2FY27 profit to ₹24.4 crore, even as revenue from operations grew 34.2% to ₹579.8 crore. Total expenses rose nearly 40%, led by higher gift card, point redemption and cashback costs.

Zaggle Prepaid Ocean Services reported a 30.1% year-on-year decline in profit to ₹24.4 crore for Q2FY27. The spend management and fintech firm had posted a profit of ₹34.9 crore in the corresponding period of the previous financial year.

Revenue from operations rose 34.2% year-on-year to ₹579.8 crore during the quarter under review, up from ₹432.2 crore in Q2FY26. Operating profit saw a mild contraction on an annual basis, with earnings before interest, tax, depreciation and amortisation (EBITDA) declining 5.0% to ₹41.7 crore against ₹43.9 crore a year ago. The company's EBITDA margin stood at 7.2% compared with 1.02% in the year-ago quarter.

Total expenses for the quarter increased 39.9% year-on-year to ₹555.6 crore from ₹397 crore in Q2FY26. This expansion in costs was led by higher point redemption and gift card expenses, which jumped to ₹349.1 crore from ₹235.7 crore a year earlier, alongside incentives and cashback spends rising to ₹129.2 crore. Depreciation and amortisation expenses also doubled to ₹15.2 crore.

"I am pleased to report that our continued efforts towards improving operating cash flows have enabled us to turn OCF positive during Q2FY27 at both standalone and consolidated levels. We believe this marks an important step towards building a more sustainable and scalable operating model," said Raj P Narayanam, Founder and Executive Chairman of Zaggle Prepaid Ocean Services. "On the business front, we witnessed strong traction in our loyalty and rewards segment, supported by increased festive-season activity. This contributed to revenue growth across both Zaggle and Greenedge. Additionally, our Dice acquisition began contributing SaaS revenues during the quarter, further strengthening our technology-led revenue streams."

Zaggle Prepaid Q2 sequential performance

On a sequential quarter-on-quarter (QoQ) basis, the company registered strong growth across both its top and bottom lines. Profit for the September quarter rose 39.56% from the ₹17.53 crore recorded in the preceding quarter ended 30 June 2026 (Q1FY27).

Revenue from operations climbed 37% sequentially against ₹423.2 crore in Q1FY27.

Shares of Zaggle Prepaid Ocean Services ended modestly higher on Friday, closing 0.85% up at ₹174.50, gaining ₹1.47 during the session ahead of the quarterly earnings announcement.