Zaggle Q4: Profit Jumps 62% YoY To INR 31 Cr

Fintech SaaS company Zaggle’s consolidated profit after tax (PAT) surged 62% to INR 31.1 Cr in the fourth quarter (Q4) of FY25 from INR 19.2 Cr in the year-ago quarter on the back of a sharp increase in its top line.

On a quarter-on-quarter basis, profit surged 57% from INR 19.8 Cr.

Operating revenue jumped nearly 51% to INR 412.1 Cr in the March quarter of FY25 from INR 273.4 Cr in the same quarter last year. Sequentially, the top line grew over 22% from INR 336.9. Cr.

In its investor presentation, the company said that healthy year-on-year (YoY) growth in Zaggle Zoyer, Propel and Save platforms, new user additions, and cross-selling initiatives bolstered the top line.

Founded in 2011 by Raj Narayanam, Zaggle provides a spend management platform (Zoyer), a corporate employee benefits platform (Propel), employee expense management platform (Save), among others. Its offerings help businesses automate their accounts and issue prepaid cards. Its portfolio of SaaS products also includes tax and payroll software. 

Including other income of INR 12.7 Cr, the company’s total revenue stood at INR 424.8 Cr during the quarter ended March 31, 2025.

It is to be noted that Zaggle earns all of its revenue from its India operations. At INR 245 Cr, the company earned the highest revenue from the gift cards segment, marking a 91% YoY and 28% QoQ jump. Revenue from program fees increased 15% YoY and 16% QoQ to INR 157 Cr.

On a standalone basis, Zaggle’s adjusted EBITDA jumped 20.6% QoQ and 39.6% YoY to INR 37.9 Cr. However, adjusted EBITDA margin declined to 9.2% from 9.9% in the year-ago quarter and 9.4% in the preceding December quarter. 

In a statement, the founder said that Zaggle recorded its highest-ever quarterly revenue, adjusted EBITDA and PAT in Q4 FY25.

Zaggle expanded its customer base to over 3,400 during the quarter, signing contracts with the likes of Physics Wallah, Honasa Consumer, Tech Mahindra, Forbes Marshall, among others.

Notably, Zaggle has been on an acquisition spree lately. In Q2 FY25, it acquired an additional 53.32% stake in Span IT Solutions, increasing its total shareholding in the tax and e-filing company to 98.3%. 

In the preceding December quarter, Zaggle also acquired an additional 12.34% stake in digital payments service provider Mobileware Technologies for INR 7.25 Cr. So far, it has invested INR 22.8 Cr for a 38.3% stake in Mobileware.

In December last year, Zaggle raised INR 594.84 Cr in its first qualified institutional placement (QIP) round with an eye on expanding its offerings through strategic investments and acquisitions. Back then, sources told Inc42 that the company was looking to make three more investments and acquisitions by March 2025. 

In a post-earnings call, the company said that some of the potential acquisitions are in the due diligence phase.

For the full fiscal year FY25, Zaggle reported a profit of INR 87.9 Cr, a twofold increase from INR 44 Cr in FY23. Operating revenue spiked 69% to INR 1,330.6 Cr during the year ended March 31, 2025 from INR 787 Cr in FY24. 

“Building on our strong performance, we project our organic FY26 top line growth to range between 35-40%. As we continue to scale, we remain focused on driving margin expansion through increased operating leverage, operational efficiencies and cross-sell opportunities,” Narayanam said in the investor presentation.

Where Did Zaggle Spend in Q4?

The rise in expenditure outpaced the surge in revenue for the fintech SaaS company. Overall, expenses jumped over 52% to INR 383.6 Cr during the quarter under review from INR 252 Cr in the year-ago period. On a QoQ basis, it grew over 22% from INR 314.1 Cr.

Cost Of Gift Cards: The company spent INR 221.6 Cr under this head, almost double the INR 111.9 Cr it spent in the year-ago quarter. 

Incentives & Cashback Expense: The company managed to reduce its spending on cashbacks, albeit marginally, to INR 108.4 Cr during the quarter from INR 109.8 Cr in Q4 FY24. Sequentially, this expense grew almost 31% from INR 82.9 Cr.

Employee Cost: The spending on employees increased 112% YoY and 3% QoQ to INR 17.6 Cr during the quarter. The company said that the rise in employee costs aligns with the overall expansion of the business. Besides, it also said that its total ESOP expenses in FY26 are expected to be in the range of INR 9 Cr to INR 10 Cr. 

Ahead of the company’s Q4 earnings announcement, shares of Zaggle ended 8.4% higher at INR 366.6 apiece on the BSE.