Zaggle Prepaid Ocean Services , a leading player in the prepaid and corporate services sector, has announced a significant increase in its financial performance for the latest quarter.

Strong Profit Growth

The company reported a consolidated net profit of ₹261.00 million, marking a substantial 56% increase from ₹167.34 million in the same quarter of the previous year. This impressive growth in profitability underscores the company's ability to enhance its bottom line amid challenging market conditions.

Improved Operational Performance

Zaggle's operational efficiency also showed notable improvement:

• EBITDA Growth: The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose to ₹305.00 million, up from ₹224.00 million in the corresponding quarter of the previous year. This represents a year-over-year increase of approximately 36%.

• EBITDA Margin Expansion: The EBITDA margin improved to 9.19%, compared to 8.88% in the same quarter last year, indicating enhanced operational efficiency and cost management.

Financial Highlights

The robust financial performance of Zaggle Prepaid Ocean Services reflects the company's strong market position and effective business strategies. The significant increase in net profit, coupled with improved EBITDA and margin expansion, indicates the company's ability to drive growth while maintaining operational efficiency.

As Zaggle continues to navigate the dynamic prepaid services landscape, these results position the company favorably for sustained growth and value creation for its stakeholders.

Zaggle Prepaid Ocean Services Limited , a leading SaaS fintech player in the spend management sector, has taken legal action against the Telangana government's IT department over a recent tender award. The company filed a writ petition in the High Court of Hyderabad on August 13, 2025, contesting the allocation of a T-Wallet implementation tender.

Tender Dispute Details

Zaggle, which participated in the tender alongside consortium partner NSDL Payments Bank Limited, is challenging the award given to Purview India Consulting and Services LLP. The company's petition alleges several irregularities in the tender process:

1. Eligibility Criteria Violation: Zaggle claims that Purview India Consulting and Services LLP was ineligible to participate, as the tender conditions specified that only Private Limited or Public Limited companies could take part.

2. Evaluation Process: The petition alleges arbitrary evaluation of bids and non-disclosure of technical scores.

3. Pricing Concerns: Zaggle asserts that the contract was awarded to a higher-priced bidder, raising questions about the selection process.

4. Constitutional Violations: The company cites infringements of Articles 14 and 19(1)(g) of the Constitution of India, along with breaches of the 'level playing field' doctrine.

Legal and Financial Implications

The writ petition, filed under Article 226 of the Constitution of India, names several respondents, including:

1. The State of Telangana, represented by its Special Chief Secretary
2. Electronic Service Delivery (Mee Seva)
3. The Commissioner, Electronic Service Delivery (ESD)
4. Purview India Consulting and Services LLP

Zaggle's management expressed confidence in the merits of their case. In a filing to the stock exchanges, the company stated, "Based on preliminary assessment and prevailing law, the Company is hopeful of an ultimate favorable judgement and there is no material financial implication on the Company."

Company Performance and Outlook

Despite the legal challenge, Zaggle continues to show strong financial performance. In its recent Q1 FY26 results, the company reported:

Raj P Narayanam, Founder and Executive Chairman of Zaggle, commented on the company's performance, stating, "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."

The company also highlighted recent strategic customer wins, including Hindustan Pencils, Apollo Health, Mo Engage, Novozymes, DTDC, CK Birla Healthcare, and Truecaller, reinforcing its market position.

As Zaggle awaits the court's decision on the T-Wallet tender dispute, the company remains focused on its growth strategy, including AI initiatives and potential inorganic growth opportunities. The management has reiterated its guidance for the year, expecting topline growth in the range of 35% to 40% and EBITDA margins projected between 10% and 11%.

Investors and industry observers will be closely watching both the legal proceedings and Zaggle's continued market performance in the coming months.