Zaggle’s revenue rose 34% and its profit fell 30%; cashback took 66% of card fees
Zaggle’s results for July to September: how card fees, cashback and gift vouchers become revenue, why profit fell 30% as revenue rose 34%, and what it is changing.
Zaggle Prepaid Ocean Services, the Hyderabad company that sells spend-management software and prepaid and corporate cards issued with banks, reported revenue of ₹579.9 crore for July–September, up 34%, and profit of ₹24.5 crore, down 30%.1 Its adjusted EBITDA margin, a company measure, fell to 7.7% from 10.8%.2 Incentives and cashback came to ₹129.3 crore, 66.2% of the ₹195.4 crore it earned in card program fees.1 Zaggle now says it is “moderating cashback across corporate credit cards and prepaid cards” and “actively moderating engagement with cash flow intensive customers going forward”.3
₹579.9 cr
revenue for July–September, up 34%
NSE filing
₹24.5 cr
profit for the quarter, from ₹35.0 crore
NSE filing
66.2%
incentives and cashback as a share of program-fee revenue
NSE filing
17.4%
growth in revenue after the cost of points and vouchers
NSE filing
01Three ways Zaggle books revenue
Program fees are Zaggle’s share of the interchange fee banks earn when its cards are used: ₹195.4 crore in the quarter, up 12%.1 Against them it pays incentives and cashback, which its presentation tracks as a share of program fees: between 66% and 69% in each of the last six quarters.3 Propel is the rewards points and gift vouchers companies give their sales channels and staff. Under Indian accounting it is reported gross, so revenue includes what the redeemed vouchers cost: Propel brought in ₹368.6 crore, up 49% on the festive season, and Zaggle paid out ₹349.2 crore for points and gift cards.1 Software fees were ₹15.9 crore, up 35% and the highest Zaggle has recorded, as contracts moved over from Dice, the spend-management business it bought in May for ₹67.9 crore; about 70% have been novated, the rest due by December.12
Zaggle asks investors to read revenue net of the cost of points and gift cards.3 Taking that cost off, revenue grew 17.4%, to ₹230.7 crore, half the headline rate.1 Another Indian fintech whose headline growth needed its base is NPST, whose 45% revenue rise came with a ₹27.78 crore goods line.
02Where the profit went
Of ₹145 crore more income, ₹113 crore went on points and vouchers, and less was left before tax
Zaggle consolidated total income by where it went, ₹ crore, July–September 2025 and 2026
- Points and vouchers paid out
- Incentives and cashback
- Staff, depreciation and other costs
- Left before tax
Show tableHide table
| Points and vouchers paid out | Incentives and cashback | Staff, depreciation and other costs | Left before tax | |
|---|---|---|---|---|
| Jul–Sep 2025 | 236 | 116 | 45 | 44 |
| Jul–Sep 2026 | 349 | 129 | 77 | 31 |
Source: Zaggle Prepaid Ocean Services, unaudited consolidated results, NSE filing of 13 November 2026 · as of 13 November 2026 · “Left before tax” is before the share of an associate’s profit.
Cashback rose 12%, in step with program fees. What grew faster were other expenses, which doubled to ₹41.1 crore, and depreciation, which doubled to ₹15.2 crore, while other income fell to ₹6.3 crore from ₹9.2 crore.1 Zaggle puts the higher expenses down to marketing for the Global Fintech Fest and other events, the cost of acquiring users for its Zagg.Money app, and technology and AI costs. It says operating cash flow turned positive in the quarter.2 It is also moving volumes away from companies that want the redemption model “with no advance and longer working capital cycles”.3
A separate filing the same evening, CARE Ratings’ monitoring report on the ₹594.84 crore Zaggle raised from institutions in December 2024, answered “No” to whether all use of the money matched the placement document: it found delays without board approval and acquisition money moved into a current account used for other business. It recorded no deviation from the stated objects.4 What to watch: October–December, the quarter that brought in ₹525.5 crore last year, and whether cashback falls below two-thirds of program fees.3
Sources
- Zaggle Prepaid Ocean Services, outcome of board meeting: unaudited standalone and consolidated results for the quarter and half-year to 30 September 2026, with limited review reports (NSE) — 13 November 2026
- Zaggle Prepaid Ocean Services, investor release on quarter and half-year performance (NSE) — 13 November 2026
- Zaggle Prepaid Ocean Services, investor presentation, November 2026 (NSE) — 13 November 2026
- CARE Ratings, monitoring agency report on Zaggle's qualified institutional placement, quarter to 30 September 2026 (NSE) — 13 November 2026
Disclosure. TechBag is a software reseller: it earns when companies buy through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view.
Keep reading
