Zaggle Prepaid Ocean Services reported a 33% year-on-year decline in net profit to ₹17.5 crore for Q1 FY27, compared with ₹26.1 crore in the same quarter last year. However, the company achieved revenue growth of 27.5% year-on-year to ₹423.3 crore from ₹332 crore in Q1 FY26. According to CNBC TV18, the revenue composition included ₹160 crore from programme fees, ₹250.7 crore from Propel platform revenue/gift cards and ₹12.5 crore from platform, SaaS and service fees. The sequential decline in profit was significantly sharper than the revenue growth, with EBITDA margin contracting to 7.3% from 9.2% in the year-ago quarter.
The sequential decline in profit was significantly sharper than the fall in revenue, with EBITDA margin contracting to 7.3% in Q1 from 9.2% in the previous quarter. As reported by CNBC TV18, the lower EBITDA margin was attributed to expenses related to the Dice acquisition, including transaction costs, one-time vendor payments and relocation expenses for more than 100 professionals. The company also cited moderated push of expenses into the profit and loss account that were earlier capitalised, increments for existing employees, and additional employee costs and other expenses from the acquisition of Zagg.Money as factors affecting margins. Revenue from Dice contracts was not captured in Q1 FY27 and will start reflecting from Q2 FY27.
The company completed an investment of ₹8 crore in Unobanc Private Limited, a subsidiary of Hop Financial Solutions Limited, which holds an Authorised Dealer Category II licence from the RBI. According to CNBC TV18, this investment is aimed at strengthening its capabilities in cross-border payments, forex cards and remittances. Dice has brought enterprise clients including Hindalco, Bajel, Trident Group, IDFC First Bank, Lenskart, Nephroplus and XpressBees into its fold. The Propel margins surged on the back of strong performance from Greenedge as well as overriding commissions received during the quarter, with incentive and cashback as a percentage of revenue standing at around 66.3%, improving from 69% in Q4 FY26.
Zaggle Prepaid Ocean Services operates as a leading spend management company in the business-to-business-to-customer (B2B2C) segment and is recognized as one of the largest issuers of prepaid cards in India through partnerships with leading banks. The company offers a diversified portfolio of software-as-a-service (SaaS) products, including tax and payroll software solutions. Its performance is closely watched as growth in corporate spending and digital payments influences demand for its corporate expense management, employee benefits and rewards solutions.
Shares of Zaggle Prepaid Ocean Services closed at ₹201.50 on the NSE on August 14, up 0.23% from the previous close, according to CNBC TV18. The modest gain despite the profit decline reflects investor confidence in the company's growth trajectory and acquisition strategy, with the Dice and Zagg.Money acquisitions expected to enhance long-term capabilities in enterprise solutions and cross-border payments.
