Zaggle Q1 Profit Dips 33% YoY To ₹17.5 Cr Despite 28% Revenue Jump

Fintech SaaS firm Zaggle observed a 33% year-over-year (YoY) drop in net profit to ₹17.5 Cr in Q1 FY27, despite a 28% surge in revenue to ₹423.3 Cr. Sequentially, the profit plunged 57% to ₹17.5 Cr from ₹40.6 Cr. Operating revenue expanded 28% YoY to ₹423.3 Cr, but contracted 32% quarter-over-quarter (QoQ) to ₹617.9 Cr. Adjusted EBITDA increased 4% YoY to ₹34.7 Cr, yet the margins fell to 8.2% from 10.1% YoY.

Other income contributed ₹6.6 Cr to total income of ₹429.9 Cr. Total expenses rose 31% to ₹406.7 Cr, while Q4 FY26 expenditures were ₹573.7 Cr. The decline in profitability is attributed to increased expenses from acquiring enterprise spend management startup Dice in May, along with costs from absorbing credit card fintech Rio.Money.

Zaggle also invested ₹8 Cr to acquire a 20% stake in Unobanc Pvt Ltd for enhancing cross-border payment, forex card, and remittance capabilities. Founder and executive chairman Raj P Narayanam stated that Q1 FY27 marks an inflection point for the company as it transitions from a decade of profitable growth into a phase of consolidation and optimization.