Zaggle Prepaid Q2 PAT drops 30% YoY to Rs 24 cr

Profit before tax declined 31.22% year on year to Rs 31.78 crore in Q2 FY27. Adjusted EBITDA decreased 4.2% to Rs 44.60 crore from Rs 46.50 crore in the corresponding quarter last year. Adjusted EBITDA margin narrowed to 7.7% from 10.8%.

The company said employee expenses increased primarily due to the addition of employees from the Dice acquisition. Other expenses rose largely on account of marketing costs incurred for GFF and other events, user acquisition costs for Zagg.Money, and higher technology and AI-related expenses. Cashback as a percentage of revenue stood at 66.2%, marginally improving from the previous quarter.

Raj P Narayanam, founder and executive chairman of Zaggle Prepaid Ocean Services, said, ?the company's continued efforts towards improving operating cash flows enabled it to turn operating cash flow positive during Q2 FY27 at both standalone and consolidated levels. He added that the company witnessed strong traction in its loyalty and rewards segment, supported by increased festive-season activity, contributing to revenue growth across Zaggle and Greenedge.

The Dice acquisition began contributing SaaS revenue during the quarter. The company has completed novation of approximately 70% of Dice's customer contracts, with the balance expected to be completed in Q3 FY27. The acquisition has expanded its enterprise network, bringing clients such as Hindalco, Trident, Bajel, Aakash Educational Services and IDFC First Bank.

The company is also focusing on increasing adoption of its co-branded credit cards and UPI offerings, while maintaining disciplined customer acquisition costs. On the international front, it has established Zaggle Holdings Limited in Abu Dhabi Global Market (ADGM) to expand its presence in the region.?

Zaggle Prepaid Ocean Services is a leading spend management company with a differentiated value proposition and diversified user base. The company operates in the business-to-business-to-customer (B2B2C) segment and is one of the largest issuers of prepaid cards in India through partnerships with leading banks. It also offers a diversified portfolio of software-as-a-service (SaaS) products, including tax and payroll software.

Shares of Zaggle Prepaid Ocean Services rose 0.12% to settle at Rs 173.20 on Friday, 13 November 2026.

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