Zaggle Prepaid Ocean Services announced its audited financial results for the quarter and year ended March 31, 2026, reporting a third consecutive quarter of record performance. The company delivered its strongest-ever annual results, with consolidated revenue from operations for FY26 growing 46.3% year-on-year to ₹19,076.5 million, compared to ₹13,037.6 million in FY25. Net profit for the year increased 51.8% to ₹1,387.5 million from ₹914.1 million in the previous year. On a standalone basis, revenue from operations grew 42.2% year-on-year to ₹18,528.1 million, with standalone Profit After Tax rising 51.9% to ₹1,328.6 million. The Board of Directors approved the standalone and consolidated audited financial results at their meeting held on May 13, 2026, with the statutory auditor issuing an unmodified audit opinion on both sets of financial statements.

Consolidated Financial Performance

The consolidated financial metrics for the quarter and full year highlight robust growth across all profitability indicators. Adjusted EBITDA for FY26 surged 51.0% to ₹1,915.9 million, with an EBITDA margin of 10.0%. On a quarterly basis, Q4 FY26 revenue rose 49.9% to ₹6,179.2 million, while adjusted EBITDA jumped 62.4% to ₹604.6 million. Profit After Tax for Q4 FY26 stood at ₹406.0 million, a 30.4% increase over the corresponding period last year. Quarter-on-quarter, Q4 FY26 revenue grew 17.6% from ₹5,255.5 million in Q3 FY26, with adjusted EBITDA rising 15.0% from ₹525.7 million. Consolidated basic EPS for FY26 stood at ₹10.28, compared to ₹6.99 in FY25, while diluted EPS was ₹10.26 versus ₹6.96.

Segment Revenue Breakdown

The consolidated segment revenue data reflects strong growth across all revenue streams. Program Fee revenue for FY26 grew to ₹7,523.35 million from ₹5,456.41 million in FY25, while Propel platform revenue and gift cards rose to ₹11,074.07 million from ₹7,218.48 million. Platform fee, SaaS fee, and service fee revenue reached ₹479.04 million compared to ₹362.68 million in the prior year. All revenue was generated within India.

Standalone Financial Performance

The standalone profit and loss statement reflects consistent growth across revenue streams. Standalone gross profit for FY26 grew 35.0% to ₹8,411.5 million, with a gross profit margin of 45.4%. Reported EBITDA on a standalone basis rose 56.7% to ₹1,805.7 million, with a reported EBITDA margin of 9.7%. The Propel platform's annual standalone revenue surpassed ₹10,000 million for the first time, reaching ₹10,555 million, and contributed 57% of total standalone revenue, with Program Fees contributing 41% and Platform Fees contributing 2%. Standalone basic EPS for FY26 was ₹9.89 and diluted EPS was ₹9.87, compared to ₹6.96 and ₹6.93 respectively in FY25.

Management Commentary

Commenting on the performance, Raj P Narayanan, Founder and Executive Chairman, said: "With third consecutive quarter of record performance, we closed FY26 on a strong footing, delivering our strongest-ever quarterly and annual results. On an annual basis, company delivered a topline of INR 19,076 million (46.3% YoY growth), adjusted EBITDA of INR 1,916 (51.0% YoY growth) and PAT of INR 1,388 million (51.8% YoY growth). On a quarterly basis, the company recorded revenues of INR 6,179 million (49.9% YoY growth), adjusted EBITDA of INR 605 million (62.4% YoY growth), PAT INR 406 million (30.4% YoY growth) supported by sustained margin improvement."

Narayanan further noted that during the year, the company completed the acquisitions of Greenedge Enterprises and Rivpe Technology (rebranded as Zagg.Money), entered the consumer retail credit card market, and established Zaggle Payments IFSC Ltd in GIFT City to serve as a platform for global cross-border payments and financial services. The company also moved from AI-led vision to full-scale execution with dual AI engines — one driving internal efficiency and another powering customer-facing capabilities. Subsequent to the quarter ended March 31, 2026, the Board approved the proposed acquisition of assets from Dice Enterprises Private Limited — comprising software, databases, codebase, contracts, intellectual property, domain names, and other related assets in the spend management space — for a consideration of approximately ₹679 million plus applicable taxes.

Corporate Actions and Fund Utilisation

The company has fully utilised IPO proceeds of ₹3,621.60 million as at March 31, 2026, across customer acquisition and retention (₹3,000.00 million), technology and product development (₹400.00 million), repayment of borrowings (₹170.83 million), and general corporate purposes (₹50.77 million). Out of net QIP proceeds of ₹5,741.37 million raised during FY25, the company had utilised ₹1,912.97 million as at March 31, 2026, for repayment of borrowings, strategic investments, and general corporate purposes, with the balance ₹3,828.40 million temporarily invested in deposits with scheduled commercial banks and a monitoring account. During the quarter, the company allotted 6,478 equity shares at an exercise price of ₹164 per option under its Employee Stock Options Scheme. The Board and shareholders also approved the issuance of 1,058,201 share warrants on a preferential basis at ₹567 per warrant, with 25% (₹141.75 per warrant, aggregating ₹149.99 million) received on allotment.

Operational Metrics and FY27 Guidance

As of March 31, 2026, Zaggle had issued over 50 million prepaid cards, served more than 3.9 million users, and partnered with 19 banks, maintaining a customer churn rate of less than 1.5% and customer acquisition costs of less than 5% of total revenue. The company serves over 3,900 corporates and employs 310+ people. The consolidated group includes subsidiaries Span Across IT Solutions Private Limited, Greenedge Enterprises Private Limited, Rivpe Technology Private Limited, Omnicash Fintech Private Limited, and Zaggle Payments IFSC Limited, along with associate Mobileware Technologies Private Limited. Looking ahead to FY27, the company projects standalone revenue growth of 25–30% and consolidated revenue growth of approximately 40%, supported by AI-first product development, expansion into MENA and US markets, and deeper monetisation across its strategic pillars.

Zaggle Prepaid Ocean Services has announced a significant update to its acquisition plan involving Dice Enterprises Private Limited (Dice), confirming the formal execution of key transaction agreements on May 13, 2026. This development follows the Board of Directors' approval on May 8, 2026, which restructured the deal from an acquisition of Dice's entire shareholding to a targeted purchase of specific assets. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Agreement Execution Update

In its latest regulatory filing (Letter No. ZAGGLE/26-27/23 dated May 13, 2026), Zaggle Prepaid Ocean Services confirmed that it has entered into the Asset Purchase Agreement – Contracts, the Intellectual Property Assignment Agreement, and the Asset Purchase Agreement – Software with Dice Enterprises. The execution of these three agreements marks a key milestone in the consummation of the transaction, which was originally intimated vide letter no. ZAGGLE/25-26/28 dated June 5, 2025, and subsequently restructured vide letter no. ZAGGLE/26-27/18 dated May 8, 2026.

Revised Deal Structure and Consideration

Under the modified arrangement, Zaggle Prepaid Ocean Services will acquire assets from Dice comprising, but not limited to, Software, Databases/Codebase, Contracts, Intellectual Property, and Domain Names, along with all related assets in the Spend Management space. The consideration for this asset purchase has been set at approx Rs. 67.9 Crores plus taxes, if applicable. The transaction is structured as a cash consideration and does not involve any acquisition of shares or transfer of shareholding.

The following table summarises the key parameters of the proposed transaction:

About Dice Enterprises Private Limited

Dice Enterprises Private Limited, incorporated on January 12, 2018, is a spend management platform that provides travel and expense management, accounts payable management, and procurement management solutions. The entity operates exclusively in India. Dice has demonstrated consistent revenue growth over the last three financial years, as detailed below:

Dice achieved a turnover of Rs. 10.85 Crores for the financial year 2024-25, reflecting a growth trajectory over the preceding years.

Strategic Rationale

According to the disclosure, the asset acquisition is intended to expand Zaggle Prepaid Ocean Services' AI-enabled product offerings for its customers and provide access to a large base of existing customers. The combined product offering is aimed at enabling further expansion in the Indian market, as well as creating opportunities for providing solutions globally. The acquisition is not classified as a related party transaction, and neither the promoter nor the promoter group nor group companies hold any interest in Dice Enterprises.

Transaction Timeline and Compliance

The consummation of the proposed transaction is subject to the fulfillment of closing actions as identified in the Asset Purchase Agreement – Software, the Intellectual Property Assignment Agreement, and the Asset Purchase Agreement – Contracts. The transaction is expected to be completed within 120 days from the date of approval by the Board of Directors. The Board meeting at which the approval was granted commenced at 12:30 PM and concluded at 01:55 PM on May 8, 2026.