Zaggle Prepaid Ocean Services LimitedQ1 FY27 Results & Financial Update

Standalone revenue growth is projected to be around the 25% range for the full fiscal year.

The company expensed approximately INR6 crores of product development and infrastructure costs directly to the P&L, moving toward a policy of higher expensing versus capitalization.

Zaggle serves more than 4,000 customers across industries, with around 4 million active users on Zaggle-powered cards and software platforms.

The Save business added marquee clients such as Radisson Hotels, SCA, and Nuvama Wealth, while Zoyer onboarded major accounts including Diesel Fashion, Mokobara Lifestyle, and expanded rollouts for large retail chain stores.

The fleet business achieved a 43% increase in total transactions and an annualized spend rate of INR100 crores, alongside signing a 5-year agreement with HPCL as an aggregator for the Driver Track Plus program.

The DICE acquisition was restructured to an asset purchase for approximately INR68 crores (excluding GST), securing IP and contract portfolios. Relocation of 100 AI professionals is complete, with contract novations for over 85 clients underway for completion by the end of Q2 FY27.

AI integration across Save, Zoyer, and Propel has reduced new feature launch timelines by up to 50% and enabled complex enterprise deployments such as automated multi-entity procure-to-pay validation workflows.

Zaggle is in the process of opening a subsidiary in ADGM (Abu Dhabi Global Markets) International Financial Center during Q2 FY27 to expand its footprint in the UAE market using Save, Zoyer, and Propel.

Q1 FY27 consolidated revenue mix comprised INR12.5 crores from SaaS platform fees, INR160 crores from program fees, and INR251 crores from Propel points.

Propel points margin on a consolidated basis reached 7.1% (boosted by Greenedge), while standalone Propel margin stood at approximately 5%.

Cash back as a percentage of program fees was 66.3% in Q1 FY27, up marginally from 65.7% in Q1 FY26 due to a higher mix of corporate credit cards, but down from 69% in Q4 FY26.

Management initiated a transition to move customers to banks with faster realization cycles to optimize working capital and improve cash flow conversion over the next 15 to 18 months.

Zaggle made a strategic investment of approximately INR8 crores in Unobanc Private Limited (moneyHOP), which holds an RBI AD Category-II license for cross-border payments and forex services.

Management reaffirmed its consolidated revenue growth guidance of around 40% for FY27, expecting growth rates to accelerate through Q2 and the remainder of the fiscal year.

Management expects DICE to contribute INR15 crores to INR16 crores in revenue for FY27, backed by gross margins of over 90%.

TaxSpanner remains on target to achieve financial year breakeven, supported by an estimated 120% growth on the B2B corporate compliance side.

Management explained that Q1 consolidated revenue growth of 28% reflected seasonality and deferred revenue from DICE contracts (which commence in Q2), alongside deliberate bank re-carding actions to optimize cash flows.

Management clarified that historical 14% to 15% EBITDA margin targets are viewed over a 5 to 7-year horizon, with near-term margins affected by upfront investments and cost expensing.

Revenues from novated DICE contracts begin July 1st (Q2 FY27), with full contract novation expected to be completed by Q3 FY27.