Zaggle Prepaid Ocean Services Limited Q2 FY26 Concall Decoded: – Revenue up 42%, PAT up 79%, cash flows sulking, and Zaggle is shopping carefully

1. Opening Hook

Zaggle’s concall felt like a fintech victory lap — until cash flows entered the room.

Revenue sprinting at 42%, PAT jumping 79%, EBITDA flexing muscles… and then the CFO calmly admitted operating cash flow is still negative. Classic SaaS moment: profits on paper, money still chasing Diwali bonuses.

Management, however, looked unbothered. Why? Because cross-sell is rising, acquisitions are lining up, retail credit cards are about to become a new beast, and nobody is taking credit risk. Zaggle is growing fast, buying smart, and saying “no” to shady deals — which in Indian fintech is practically revolutionary.

Read on. The numbers are loud, but the subtext is louder.

2. At a Glance

• Revenue up 42% YoY (Q2) – Growth so fast even Excel needs water.
• PAT up 79% YoY – Operating leverage finally showing up.
• EBITDA margin ~10% – Not peak yet, but climbing steadily.
• Cash balance ₹573 cr – War chest ready, trigger finger cautious.
• OCF negative – Festive season ate the cash, again.

3. Management’s Key Commentary

“Best-ever quarterly and half-yearly performance.”
(Translation: This wasn’t a fluke.) 😏

“We abandoned one large acquisition.”
(Translation: We saw something dirty and walked away.)

“Cross-sell has moved from 16% at IPO to 21%.”
(Translation: Customers are buying the full thali, not just starters.)

“Retail co-branded cards can do ₹500 cr revenue in 4–5 years.”
(Translation: A new growth engine is warming up.)

“We don’t take any credit risk.”
(Translation: NPAs are the bank’s headache, not ours.)

“OCF will break even this year.”
(Translation: Diwali is temporary, spreadsheets are permanent.)

4. Numbers Decoded