- Type of Event: Q1 FY27 Earnings Conference Call held on August 14, 2026.
- Management Participants: Dr. Raj Narayanam (Executive Chairman), Mr. Avinash Godkhindi (Managing Director and Chief Executive Officer), and SGA Investor Relations Advisors.
- Purpose: Discussion of the company's operational and financial performance for the quarter ended June 30, 2026, and strategic updates.
- Compliance Statement: The company included a standard disclaimer about forward-looking statements and confirmed that the transcript was uploaded to the stock exchange and company website as per regulatory requirements.
- Financial Period Discussed: Q1 FY27 (quarter ended June 30, 2026).
Key Financial Highlights:
- Consolidated revenue: INR423 crores, up 28% YoY from Q1 FY26.
- Stand-alone revenue: INR390 crores, up 18% YoY from INR331 crores in Q1 FY26.
- Adjusted EBITDA: INR34.7 crores with a margin of 8.2% (compared to 10.1% in Q1 FY26).
- Cost base increased by 25% QoQ (Q1 FY27 vs Q4 FY26) due to four factors: DICE acquisition costs (relocation of 100 AI professionals), moderated capitalization of expenses, standard employee increments, and Zagg.Money acquisition costs.
Strategic Updates:
- DICE Acquisition: Completed for INR68 crores (ex-GST), acquiring spend management product suite and IP. Relocated 100 AI professionals to Hyderabad. Contract novation for 85+ clients underway, with revenue expected from Q2 FY27. Key clients include Hindalco, Bajel, Trident Group, IDFC First Bank, Lenskart, and XpressBees.
- Zagg.Money (formerly Rio.Money): Annualized run rate for new card acquisitions increased 2.3x to 84,000 cards. Launched Twin co-brand card with Punjab National Bank and went live with AU Small Finance Bank.
- Subsidiary Performance:
- 86400: Revenue grew 29% YoY to INR22 crores; EBITDA grew 214% YoY to INR8.8 crores. Signed partnerships with LankaPay, Union Bank of India, and Maharashtra State Cooperative Bank.
- GreenEdge: Revenue grew 160% YoY to INR44 crores; EBITDA grew 66% YoY to INR4.3 crores.
- TaxSpanner: Revenue grew 65% YoY to INR0.8 crores; rebranding to Z.tax underway.
- AI Investments: Integrating DICE's AI capabilities into Save, Zoyer, and Propel products for automated spend analytics, intelligent workflows, and predictive expense management. Planning an Investors Day to showcase AI capabilities.
- International Expansion: Establishing a subsidiary in Abu Dhabi Global Markets (ADGM) in Q2 FY27.
- New Investment: Strategic investment of INR8 crores in Unobanc Private Limited (moneyHOP), an RBI-approved AD Category II entity for cross-border payments.
Business Metrics:
- Active users: 4 million
- Customer base: 4,000+
- Revenue mix: SaaS platform fees (INR12.5 crores), program fees (INR160 crores), Propel points (INR251 crores)
- Propel points margin: 7.1% consolidated, 5% stand-alone
- Cash back as % of program fees: 66.3% in Q1 FY27 vs 65.7% in Q1 FY26
Guidance:
- Reiterated FY27 consolidated revenue growth guidance of 40%.
- Focus on improving cash flows and calibrating capitalization.
- TaxSpanner expected to break even in FY27.
Additional Notes Section
- The transcript was attached to the regulatory filing and uploaded to the company website at https://ir.zaggle.in/wp-content/uploads/2026/08/Q1FY27-Transcript.pdf.
- The document includes a full Q&A session with analysts covering topics such as revenue growth slowdown, EBITDA margins, DICE integration, cash flow optimization, and AI investments.