Zaggle Q1 profit jumps 56% YoY to Rs 26 crore; revenue up 32%
Revenue from operations rose 31.6% YoY to Rs 331.9 crore, while adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 27.9% to Rs 32.7 crore.
The Hyderabad-based company added several strategic clients during the quarter, including Hindustan Pencils, Apollo Health, Mo Engage, Novozymes, DTDC, CK Birla Healthcare, and Truecaller. Its customer base spans across banking, technology, healthcare, manufacturing, FMCG, infrastructure, and automobile sectors. Total expenses rose to Rs 309.5 crore from Rs 233.9 crore a year earlier, with more than 70% attributed to the cost of point redemption and gift cards. Spending on incentives and cashbacks stood at Rs 95.5 crore.'This is by far our best first-quarter performance, despite being a slower quarter in the year. With strong fundamentals in terms of growth in the total number of customers and users, healthy growth was visible across our revenue streams,' said Raj P Narayanam, founder and executive chairman, Zaggle.The company is deploying artificial intelligence (AI) tools for sales automation, customer support, engagement, and bill processing and is also pursuing inorganic growth through investments and acquisitions.
In July, Zaggle announced it would acquire a 100% stake in fintech startup Rio Money for Rs 22 crore, marking its entry into the consumer credit card space via Unified Payments Interface (UPI). It also acquired spend management startup Dice Enterprises and GreenEdge Enterprises, a loyalty solutions provider. Narayanam said inorganic growth plans were on track, with portfolio company Mobileware Technologies delivering strong performance. He added that Zaggle would continue to assess merger and acquisition opportunities selectively while exploring adjacent sectors for expansion.Founded in 2011, Zaggle operates in the business-to-business-to-customer (B2B2C) segment, offering prepaid card programmes, SaaS-based expense and rewards management tools, and incentive platforms for corporates. It works with multiple banking partners and, as of June 30, 2025, had issued over 50 million prepaid cards and served more than 3,500 corporate clients and 3.39 million users.Shares of Zaggle closed at Rs 367.3 on the BSE on Thursday. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Tariffs, tantrums, and tech: How Trump's trade drama is keeping Indian IT on tenterhooks
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