Zaggle Q2: Profit Surges 72% YoY To INR 35 Cr

Fintech SaaS company Zaggle reported a net profit of INR 35 Cr in Q2 FY26, up 72% YoY from INR 20.3 Cr in Q2 FY25 and 34% higher on a sequential basis from INR 26.1 Cr in Q1 FY26. 

Its operating revenue grew 42% YoY and 30% QoQ to INR 432.2 Cr in the quarter under review. Including an other income of INR 9.2 Cr, its total income for the quarter stood at INR 441.5 Cr. On the expense front, Zaggle’s total expenses surged 41.5% YoY to INR 397 Cr.

Zaggle said that it recorded its “highest ever” quarterly profits in Q2 FY26. Meanwhile, its EBITDA jumped 65% YoY to INR 44 Cr while EBITDA margin stood at 10.2%. 

“In light of our strong performance and sustained momentum across all business segments, we have recently upgraded our revenue growth guidance to 40- 45% while our EBITDA guidance continues to remain in the range of 10-11%,” Zaggle’s founder Raj P Narayanam said. 

In terms of top line, the contribution of Zaggle’s employee rewards platform, Zaggle Propel, grew 47% YoY to INR 246.6 Cr. Meanwhile, Zaggle earned INR 173.9 Cr from its program fee revenue stream, up 38% YoY. Service fee revenue stood at INR 11.8 Cr, up 39% from INR 8.5 Cr in the year-ago period.

Zaggle attributed the growth in revenue to new client additions, a broader user base, and higher cross-sell activity. Its total customer count increased 14% YoY to 3,674 at the end of September, while aggregate users on its platform grew 16% to 35 Lakh.

During the quarter, Zaggle expanded its product and partner network with new co-branded credit card launches alongside AU Small Finance Bank and Mastercard. It also onboarded Standard Chartered Bank and Suryoday Small Finance Bank as new partners for its card issuance and payments platform Zoyer.

For context, the SaaS company offerings include  Zaggle Propel, employee benefits and tax-saving solutions platform Zaggle Save, utility payments platform Zaggle Zoyer, all-in-one expense management system Zaggle EMS, corporate credit card ZatiX, and prepaid cards.

Besides its main business, Zaggle has been on an active acquisition spree this year which has been fuelled by the INR 594.8 Cr it raised via its maiden QIP in December 2024.

In September, it announced the INR 25 Cr acquisition of Greenedge Enterprises, a golf-focused rewards and engagement platform, as part of its plan to expand the “Propel” employee rewards suite and enter the travel and experience-based rewards segment.

In June, it acquired Pune-based spend management startup Dice Enterprises for INR 123 Cr to strengthen its enterprise expense management offerings.

These deals follow earlier buys, including stakes in Effiasoft, Mobileware Technologies, and Rio.Money.

Shares of Zaggle soared 4.2% to INR 374.6 on BSE today.