Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Zaggle Prepaid Ocean Services Ltd (NSE: ZAGGLE) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Raj P Narayanam — Chairman & Executive Director
Avinash Ramesh Godkhindi — Managing Director & Chief Executive Officer
Rajesh Tumla Ganti — Chief Financial Officer
Analysts:
Ankush Agarwal — Analyst
Astha Jain — Analyst
Unidentified Participant
Rohan Mandodra — Analyst
Kiran Gargay — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to Zagal Prepaid Ocean Services Limited Q4 and FY26 earning conference call. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone telephone. This conference call may contain certain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call.
These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Dr. Raj Narayanam, Executive Chairman, Zagal Prepaid Ocean Service Ltd. Thank you. And over to you sir.
Raj P Narayanam — Chairman & Executive Director
Thank you so much. A very good evening to everyone. Thank you for joining the earnings call for Zagl Prepaid Ocean Services Limited for the fourth quarter of fiscal year 2026. On behalf of the Company, I extend a very warm welcome to all of you. On this call we are joined by Mr. Avinash Gorkindi, Managing Director and CEO Rajesh Tumla Ganti, our interim CFO and SGA, our investor relation Advisers. The financial results, press release and the investor presentation are uploaded on the Stock Exchange and on the company website.
I hope everybody has had a chance to look at it now ready for the zagl business update. FY26 marked a historic milestone for Zagl as we delivered our strongest annual financial performance to date. Talking about our standalone quarterly performance comparing Q4FY26 to Q4FY25, the company reported a healthy growth in revenues at about 593 crores, growing at around 44%. Our adjusted EBITDA increased to rupees 55 crore, growing at about 45%. The PAT surged to around 38 crores, growing at 18%. Talking about our consolidated quarterly performance comparing Q4FY26 to q4FY25, the company reported a healthy growth in revenues at about 618 crores, growing at around 50%.
Our adjusted EBITDA increased to around 60 crores, growing at around 62% and the PAD surged to around 41 crores, growing at about 30%. Talking about our standalone annual performance comparing FY26 to FY25, the company reported a very healthy growth in revenues at 1853 crores, growing at around 42%. Our adjusted EBITDA increased TO 183 crores, growing at around 47%. The PAD surged TO 133 crores growing at about 52%. Talking about our consolidated annual performance comparing FY26 to FY 25, the company reported a healthy growth in revenues at INR 1908 crores growing at around 46%, our adjusted EBITDA increasing to INR 192 crore growing at around 51% and the PAD surged at around 139 crores growing significantly at around 52%.
I want to further give an overview of ZAGL investments and acquisitions as the part of the Zaggle update. In FY26 we completed two strategic acquisitions, Green Edge Enterprises and more recently Rio.money which has now been rebranded as Zag.money, which adds to our existing portfolio of 86400 and taxpayer, which continue to deliver a strong and consistent performance. On 86400 earlier mobileware revenues grew from about 34 crores in 2025 to INR 74 crores in FY26 represented a remarkable year on year growth of 118%.
EBITDA grew from around 5.4 crores in FY25 to around 18 crores in FY26 and PAT grew around from 1.6 crores to 11 crores in FY26. This remarkable performance is driven by healthy growing upi volumes across all partners along with new partnerships like Thane Janta, Sarkari bank, ftcash, Pinot Payments and some of the other banks on taxpayer While we are not very stoked about the performance through the financial the last financial year we have taken a very following calculated steps. We have appointed new members on the board of TaxPanner which is Mr.
Avinash and Nilesh Dharpe. We are in the process of rebranding TaxPanner as Z tax and we will look to time it somewhere in the quarter. 2 this financial year along with the launch of our new Tax AI copilot backed by our entire unified platform strategy which will cater not only to individual returns, individual return filers but also deeply integrated into the TDS and GST filings which will get embedded into our product suite. We are also looking to leverage cross sell of our ZagDot Money retail credit cards on the larger customer base of taxpayer.
The tailwind from the new tax regulations provides a perfect entry point for AI driven disruption. While competitors remain tethered to outdated offline workflows, we look to leverage AI automation to capture market share and render traditional models absolutely obsolete. Our partnership with Questcorp which has got a 5 lakh plus user base is shaping up very well and we are hopeful of multiple such contracts in this year to add to our corporate base net. We see a very very good year coming for taxpayer this year and I think our overall focus on making tax as an integral part of our entire fintech suite will go a long way.
On Green Edge which runs the golf Privileges program for various banks and networks like icici, AMEX and others along with the entire Reward program for MPCI, revenues grew significantly from around 36.54 crores in FY25 to around 103.7 crore in FY26, so which is like roughly about 300% jump. EBITDA grew from around 3.4 crore to about 11 crores in FY26 and the pad grew from 2.1 crores in FY25 to around 8.1 crores in FY26 which is like a 4x jump in the net profit in 27. We project standalone revenue growth from Green Edge to range anywhere between 40 to 50%.
Our focus this year will be on adding new clients within the banking sector as well as cross selling to existing customers and we look to continue to engage deeply with NPCI on running their entire benefits program which is growing in tandem with growing UPI spends on zag dot money. The traction within the entire credit card on UPI and TPAP ecosystem has surpassed our initial expectations. Our strategy involves leveraging data driven insights from the existing about 25,000 cardholder base and the larger UPI base into a targeted pilot framework for our established corporate base.
With this I am happy to announce that we have accelerated to an annualized run rate of new acquisition of about 36,000 to 40,000 cards with just an eight week window. While this trajectory signals significant market fit, our execution remains grounded in our broader financial commitments. We are prioritizing these early wins as supplement to rather than a distraction from our five year goal which we have also said multiple times of 500 crore revenue and a 65 crore EBITDA milestone. Regarding IFIASOFT, we have reassessed the strategic need for our proposed acquisition of ifeasoft and in this entire world when AI is taking over, we have decided not to proceed ahead with the transaction.
Lastly, I am very pleased to announce the signing of definitive documents for the acquisition of dice transitioning to an asset purchase from a share purchase. We have secured the complete Spend management product suite and intellectual property along with their entire enterprise contract portfolio for approximately INR 68 crores excluding GST, a significant optimization from the initial 123 crore valuation. This acquisition integrates advanced AI capabilities into our ecosystem positioning us to lead and dominate the travel and expense and Tokyo to pay market.
I would like to take this opportunity to welcome around 100 plus talented AI skilled professionals from the DICE team. We are super excited about this acquisition primarily on account of the existing AI enabled SaaS revenue which is a high margin revenue. As all of us know, the margins range about 95 odd percent, gross margin is about 95 odd percent along with immediate synergy of capturing transaction spend of a larger corporate base. Looking ahead, we remain committed to identifying high level high impact M and A opportunities across domestic and international markets with a focus on adjacent sectors.
We intend to strategically deploy our QIP proceeds over the coming quarters to further accelerate our growth trajectory. Now I would like to give you a brief update on our product development. I hope you have all you would have gone through the note on our AI development and we will also publish another note on it in the near future. Could be a couple of quarters so that you could also see the results of some of the innovation which we have done in FY27. We continue to focus on our dual engine strategy designed to accelerate product delivery and and deploy autonomous agents across our entire ecosystem.
We are leveraging AI to reduce feature launch times by up to 50%, shifting from manual development to an AI accelerated life cycle that optimizes workforce efficiency for our enterprise clients. The roadmap emphasizes the transition from traditional software to agentic solutions where AI autonomously handles complex tasks like invoice mapping, tax optimization, real time policy enforcement. We will continue to follow our model of human in the loop till AI develops to a stage where it doesn’t require humans.
Leveraging the timely asset purchase of dice, we are planning to invest in deep vertical AI and small language models specifically trained on compliance frameworks. This technical foundation is expected to act as a launchpad for our global expansion into global markets, allowing for highly accurate localized financial intelligence. Now I would like to give an update on our international expansion plan. We remain committed to our global expansion plans for the UAE as a primary growth pillar, recognizing the massive demand for sophisticated spend management solutions within the regions and public and private sectors.
You know, we are just while we are we remain mindful of the regional volatility which is there and this war which is, you know, which is taking a little bit more time, you know, to subside. We are continuously engaging with the government, banking and commercial partners in the region while maintaining go live readiness once peace restores. Our expansion into US market is Moving at a rapid pace fueled by our vision to redefine global spend management, we are on track to kickstart our US operations by financial year end.
Earlier we had thought that we will do it by June 2026 but looking at the war and a lot of uncertainty around, we have just pushed it by a couple of quarters and we want to leverage the significant momentum which we have gained from the DICE acquisition and with this the deployment of our next generation AI powered suite, a comprehensive solution designed to handle the multi currency high compliance demands of the American enterprise landscape and we are excited to bring this level of automated intelligence to one of the world’s most dynamic financial markets.
As guided in our earlier filings, we are currently projecting our and this is on guidance, we are projecting our standalone FY27 growth to be around 25% to 30% with our consolidated growth for FY27 to be around 40% on EBITDA guidance. Due to the change in structure of the dice acquisition from 100% share acquisition to an asset purchase agreement along with the onboarding of employees which will effectively sit on the standalone P and L, we would like to give guidance on EBITDA over the next few months once the entire integration effort completes.
On Cash Flows we have significantly improved our performance on the operating cash flow metric as compared to what it was back in Q2FY26 we are maniacally focused on improving the cash flow and bringing it to a high positive level. Currently if you look at it, we are just about minus 6 crores for minus 6 crores on negative cash flow and we will look forward to improving it to a positive cash flow in the coming quarters. As highlighted, this remains the metric which we continuously track extremely closely and we would want to prioritize along with driving enhanced revenue growth and expanding our margin profile.
Lastly, I want to take this opportunity to thank Mr. Aditya Kumar Gandhi for his valuable contribution to Zygal’s journey as CFO. Further, the board has approved the appointment of Mr. Rajesh as interim CFO till the time a new Chief Financial Officer is appointed by the Board which should happen very very soon. I now hand over to our CEO Mr. Avinash Ghotkindi to carry on.
Avinash Ramesh Godkhindi — Managing Director & Chief Executive Officer
Thank you Dr. Raj. A very warm welcome to everyone joining us on the call today. Before I begin with the company details, I would like to congratulate Dr. Raj on receiving the Star of the Year award. Fintech Industry at the Huron in India Stars of APN Telangana 2026 under his leadership, Zagal has scaled new milestones year after year.
Ankush Agarwal — Analyst
So thank you so much Dr. Raj.
Avinash Ramesh Godkhindi — Managing Director & Chief Executive Officer
I would like to give a few give an overview of a few key metrics. I’m happy to share today that we have around 3.9 million active users who use XAGL power cards and software, a strong testament to the scalability and adoption of our platform. We now serve more than 3,900 corporate customers across a wide spectrum of industries and sectors. Talking about our standalone revenue mix for the quarter, SaaS platform fees contributed to around 13.1 crores, program fees contributed to about 222 crores and Propel points contributed to around 358 crores.
As you can see, our SaaS platform contributes to around 2.2% of our overall revenue. So when you think about the impact of AI on our business, it is important to note that our core monetization is driven majorly by transaction based revenues which is program fees and propel points. In fact, the integration of AI has helped improve our efficiency tremendously. For instance, product customization timelines have reduced and as highlighted by Dr. Raj earlier, our inward AI approach has enabled meaningful time savings for our employees.
Now to talk of a few business highlights. During the quarter we have signed multiple marquee clients including Rebel Foods, Saurasha, Siemens, Bluestar, CNG International, Fonak General Central Insurance Trust, Wealth Impresario Entertainment and Federal bank among others. To further illustrate this with a specific use case, one of our clients in the real estate industry was struggling with significant operational friction caused by high usage of cash and manual treatment of more than 2,500 expense vouchers per month.
Also, the lack of a versatile digital payment instrument and central control system led to persistent spend leakage and frequent delays in insight operations. To resolve these inefficiencies, we deployed the Brome module of the Zaggle Royal platform. BROME stands for Branch Recurring Operating Monthly Expenses to implement the established qrupi based central payment hub. That entirely eliminated the need for cash related reconciliation and manual handling of the vouchers along with a mobile first workflow and real time visibility into property level spending effectively plugged the leakages.
I also want to highlight one of our existing client who operates in the retail sector. Managing expenses across 200 plus branches largely led to delays, Manual follow ups and complex reconciliations. To resolve this we implemented the Brome module of our Zaggle Zoyer solution. The on ground measurable impact was absolutely phenomenal. Almost 200 plus are saved every month across the branches along with 90% better visibility and control over branch utility spends an added benefit which the client saw was around 3 lakhs saving per month in avoiding late payment penalty fees that major billing payments.
Major bill billers rely on these payments when you do it timely when you delay the payments. Our platform first strategy remains a primary growth driver with a healthy pipeline of new wins and deepening account penetration set to accelerate our momentum in Q4 we were able to cross sell to large number of clients including Hexalog, gmr, Goa, CNH International amongst others. With that I would now like to hand over the call to our midrim CFO Rajesh who will take you through the financial update in more detail.
Thank you.
Rajesh Tumla Ganti — Chief Financial Officer
Thank you Anush. Good evening everyone. I would like to take this opportunity by giving the quarterly update first as I Our reported EBITDA at a standalone basis stood at around 155 crore with a year on year growth of around 50% and this was mainly driven by improved operating leverage and the process improvements on the similar lines. Reported EBITDA margin expanded to 9.3%. Quarterly PAT recorded around 138 crores with a margin of 6.4%. Reported EBITDA at a consolidated basis to rate around 60 crores with y growth of 68% with reported EBITDA margin expanding to 9.7%.
Quarterly PAT recorded is around 41 crores with a margin of 6Point6%. Now coming to FY26 update. Reported EBITDA at a standalone basis to date around 181 crores with a yy growth of around 57% with reported EBITDA margin expanding to 9.7%. Annual PAT recorded is around INR 133 crore with a margin of 7.2% and repeated EBITDA at a consolidated basis today at around INR 189 crore with year on year growth of around 61% with reported EBITDA margin expanding to 9.9%. Annual path recorded is around 138 crore with a margin of 7.3%.
I also wanted to give you an update on some of the other points. Employee costs have reduced mostly on account of adoption of AI initiatives in the business. Increase in depreciation and amortization driven by capitalization of new technology and product developments, reflecting our continued investment in innovation on segmental performance. Our Propel platform revenue surpassed a mark of 1000 crore for the first time. This was mainly driven by demand across the product program fee contributed 41% to the revenue with the SAS fee contributing around 2% to the revenue.
We have observed significant increase in Interchange fee largely driven by performance of our Zoe and Broem solutions along with organic growth in the save and propel businesses. Also, I’ll take this opportunity to reiterate our focus on the three key metrics which we will look forward at the upcoming year. Operating cash flow, revenue growth and margin expansion. With that, I would like to conclude my update and we are happy to open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Ladies and gentlemen, please limit your questions to two per participant should have a follow up question.
We request you to rejoin the question queue. First question is from the line of Astha Jain from PKD Advisors. Please go ahead.
Astha Jain
Hello. Thank you for the opportunity. Sir. I wanted to ask you that your capitalized development costs have nearly doubled from 30 crores in H1 to 56 crores in H2FY26. So that doesn’t that make free cash flow a more meaningful metric to track the true earnings power?
Avinash Ramesh Godkhindi
Thank you. Thank you for your question. See, ultimately we are a tech company, right? So there is capitalization that has to be done. And we are, as we are investing more and more in tech, we are also capitalizing some of that. Just to clarify, we capitalize only those costs which are related to new product development. Any maintenance work is not capitalized. See, all the matrices are there for all of us to track. And you know, we can always optimize on, you know, operating cash flow, free cash flow.
We are continuously focused on improving those matrices. And as long as, you know, we are able to make move in the right direction, we are, you know, we believe sooner than later we’ll be able to, you know, sort of meet the market expectations and go beyond that for all these matrices.
Astha Jain
Okay, so my second question is that our tropical margins have declined from 10% to 4%. Like 10% in Q4FY25 to 4% in Q4FY26. So didn’t we achieve the overriding commission this quarter? Like what was the reason for this fall?
Avinash Ramesh Godkhindi
See, I think the right metric is to look at about 6% that we did for the year last time. And some of the margins have come down because we’ve also explained previously that we have been very focused on the cash flow and some of the models like the redemption model on propel points do take a lot of our cash flows, absorb a lot of cash and we have started to move away from those models. That has consequently meant that we have had to sacrifice in the interim some margins. But we believe we are going to be able to come back to around 5.5% margins in the coming years while we improve on the cash flow.
Unidentified Participant
Okay, thank you.
Operator
Thank you. Next question is from the line of Rohan Mandodra from Equator Securities. Please go ahead.
Rohan Mandodra
Good evening sir. Thanks for the opportunity and congrats on good set of numbers. So this is with respect to your guidance for next year on the standalone business and we are guiding for 25 to 30% growth. So this year we delivered around 42% growth. So is there any business where we are trying to go slow next year for guiding 25 to 30%? Just want to understand that.
Avinash Ramesh Godkhindi
Thanks. Thanks Rohan for your question and kind words. One as you are aware the base has grown significantly from the time when we were going IPO where the revenues was 373 crores. You’ll remember today on a standalone basis we are at 1852 and consol is 1907. So the pace itself has grown almost 5x6x. Right. And consequently obviously the percentage growth would come down. The other point also is as I mentioned in the previous questions our focus is cash flow improvement and if that means that some of the propel points growth comes down a little bit, we are open to that as long as it’s helping us on the cash flow there also now we’ve crossed 1000 crores in terms of volumes.
It’s a sizeable volume and any growth there would be very meaningful because you’re stuck at a high base.
Rohan Mandodra
Sure. And secondly if you look at the trade receivables they’ve gone up from 40 crores to 129 crores year on year. So if you can explain what has happened here and which if you can give the split of receivables between the three businesses.
Avinash Ramesh Godkhindi
So Rohan, we don’t generally give the split because there’s a lot of cross sell that happens. You are aware of it and the same customer might, you know end up having a payable on their books which is a receivable for us across products. Right. But again the thing that I want to highlight is we were at about 3334 crores negative at end of September and from there our goal was to at least come to a break even. We are Close to break even. We are at six. And you know, that has been the focus while the trade receivables is one of the levers.
But you know, if you look at it as a percentage of our revenue from end of Q2, it is more or less remaining and we’ll try and improve on that in the coming quarters.
Rohan Mandodra
Sure, sir. And lastly, the 6,7 crores of cash, free cash from operations that you’re talking about on a standalone basis on the console, that is almost 52 crores negative. So what’s the difference? Like what’s happening in the other part of the businesses that is leading to the high negative cash flow?
Avinash Ramesh Godkhindi
So many of these other businesses are nascent businesses, right, Rohan, which are, you know, we’ve just taken over those businesses. So we will obviously bring in much more efficiency and strength, streamline the operations in the coming quarters and also we have had to make some investments in some of those businesses. So as we go along in the coming quarters, we will be able to streamline the cash flows in those businesses as well.
Rohan Mandodra
Sure, sir. Thanks.
Operator
Thank you. Next question is from the line of Ankush Agarwal from Surge Capital. Please go ahead.
Ankush Agarwal
Yeah, hi. Thank you for taking this question. So firstly, this difference in revenue growth that you’re targeting between the consol and standalone. 10, 15%. So which recent acquisition will drive this 10 15% of Delta in revenue growth?
Avinash Ramesh Godkhindi
It’s not going to be a single acquisition, sir. It’s going to be all engines firing. But obviously some of these businesses will probably grow faster. Right. Green Edge is growing very, very well. But we expect zagdot money also to pick up a lot of pace there. Of course the lead would be with the card outs and card activations and then the revenues follow in terms of spending. That’s the typical pattern of a card portfolio, retail card portfolio. And of course we’ll see, you know, a marked improvement this year in taxpaner as well.
Ankush Agarwal
Okay, so the consumer credit card business, that is that we’ll get a reference fee is what you’re saying. And then share of India on Spencer, right?
Avinash Ramesh Godkhindi
Correct. Share of interchange and referral fees from the banks. We take no balance sheet risk.
Ankush Agarwal
The second question is around the expenses that has come down with say quarter on quarter and even yoys. I see other expenses around 24 crores versus 28 crores last year. So on the employee front, PI initiative was the PSO highlighted. But other than that also I think quite a sharp sort of reduction in overall cost base versus past 92 quarters wherein the cost Base was growing quite fast. So just trying to understand if you can talk a bit more about what is happening over here and how do you see this cost base going into the coming year.
Avinash Ramesh Godkhindi
We are obviously trying to optimize, we are trying to save every penny to be very honest and openly. Having said that, I also want to highlight that, you know, as we’ve acquired the zag, the DICE corporate portfolio and it’s asset purchase with about 100 plus dice team members coming on board. So some of these employee costs and other costs are in the next quarter likely to go up. So we just want to highlight that. But our effort to be able to bring in more efficiency optimization not just in Zaggle but across the group is continuous.
Ankush Agarwal
Okay, but like with this dissertation, are we going back on our earlier sort of guidance? We didn’t say around 11%, 12% kind of margins were expected in the coming years versus 10% this year. I think 100 this is what was sort of a guidance that every year 100 is sort of margin expansion we could expect.
Avinash Ramesh Godkhindi
You’re right on Dice. Our original plan was to have a 100% share acquisition. So that would be a subsidiary. Now the structure has changed to an asset purchase and that means that that cost cost comes onto the Zaggle as a company. Right. It’s a much more efficient structure if you look at the price which was earlier 123 crores plus plus today to 68 crores. So it’s a very significant improvement in terms of the cost per se for us. But it does mean that you know, this money and this cost comes on to our P and L and the standalone as well as consolidated consolidated.
In any case that cost would have come. Right. So we come back with the EBITDA guidance in the next few months, you know, once we are able to complete the integration process.
Ankush Agarwal
And lastly, any update on any other MA that you are pursuing that might do an advance to just the larger ones.
Avinash Ramesh Godkhindi
We will update you sir as we make progress and we hit some milestones. We will keep you posted. Thank you.
Operator
Thank you. Next question is from the line of SIVA from I thought pms. Please go ahead.
Unidentified Participant
Hi, good evening. My question is regarding the cashback and incentives metric. So we are roughly at around 68% right now and I think previous call we had guided for around 50% over the span of next four to five years. So how are we planning to do this? Like will there be any impact on our customer usage or retention if we’re going to reduce this cash back and incentive
Avinash Ramesh Godkhindi
Good Evening sir. Thank you for your question. I think you know, as we have seen in a variety of businesses, as habits get formed both on a consumer and a corporate ability to levy additional fees and to take, you know, scale back, cashbacks, etc. Is a very common phenomena. I mean just go back to the original initial years of E commerce in India or even you know, your food delivery, etc. Versus where it is today and travel being a great example where all of us are paying happily convenience fees to various OTAs.
So we believe spend management is a growing category. We’ve spoken of this umpteen number of times that you know, 30 years ago ERPs were unknown or lesser known. 20 years ago it was HRMs. 10 years ago it was CRM in India. We believe in 10 years time spend management would be a very established category at least with the C CFOs of corporates and in the ecosystem. And with that, you know, coming in in the coming years, we, we believe the cashback will automatically come down.
Unidentified Participant
Right, sir. And sir, so this cash back and incentive, we’re giving it for both, I mean all three prepaid cards, propel land, credit cards. Right. Or
Avinash Ramesh Godkhindi
It’s largely for credit cards and prepaid cards on propel points per se. We don’t necessarily give any cashbacks,
Unidentified Participant
But again for prepaid cards, like why would we want to give out our cash back? So if I’m using my prepaid card, I’ll be wanting to finish off the balance either way, Right? So why would you incentivize them on finishing off the balance?
Avinash Ramesh Godkhindi
So you’re absolutely right. We don’t want to give any incentive or cash back on prepaid and you know, credit, you know. Absolutely, we don’t want to, but consumer behavior is such that they’ve got habituated to a certain degree of cash back, you know, starting with the wallet business. So everybody has that. At least let me rephrase that. There are a certain set of consumers who transact basis, you know, the cashback coming through. So for those select customers, we still give some cash back, but believe you me, we don’t want to give that cash back.
It’s just the nature of the industry that exists today. And as the base of our customers, both on the corporate and the consumer side grows, we will start dialing down these cashbacks.
Unidentified Participant
Sure sir, thanks for explaining. And so my next question is regarding our gtv. So how much of our GTV is being contributed by Zoya Save and Propel?
Avinash Ramesh Godkhindi
Great question. It’s a tricky one because there are many Customers where they are taking both Zoya and Save. Many cards are used for both, both modules or both products. And then there are sub modules inside. So it’s very hard for us to bifurcate the GTV and generally we don’t. That’s why we don’t publish the GTV in that sense. The metric that we focus on is the program fees in this case.
Unidentified Participant
But what I was thinking was that Zoya, so it deals with vendor payments. So it kind of the payment value is higher compared to Save or Propel. So could we assume that Zoya is like 50% or greater than the other two segments?
Avinash Ramesh Godkhindi
Zoya is growing very well. It started off when we did our IPO in September 2023. There were zero revenues from Zoyer. From there it’s really taken off in a very big way. And we see that to be a very big driver of growth in the coming years for our business.
Unidentified Participant
Right. And one last question. So we’re planning to acquire Dice now. So think dice. It’s entirely SaaS revenue for them till now. So once we finish our acquisition, are we planning to cross sell our credit cards with them? And if you’re planning to do that, how much of incremental GTV can we expect from Dice’s existing client base?
Avinash Ramesh Godkhindi
So we signed the three contracts of IP purchase and asset purchase agreements today. So the Dice deal has now moved from a 100% acquisition of the shares to an asset purchase and an IP purchase agreement. So that has been completed today. The definitive documents are signed. But yes to your larger question. Absolutely. We look to process payments whether it’s corporate credit cards, whether it’s prepaid cards, whether it’s QR payments onto that base. Little early for us to come back to you with specific numbers as to how much we’ll be able to get in terms of revenues in the coming years.
But if you do a like for like in terms of what the Zaggle SaaS revenue is and what the program fees are and what the dice SaaS revenue is, you can you know, do a simple calculation and estimate what’s the potential of program fees coming in from there.
Unidentified Participant
Sure. Yeah. Thank you. That’s it for my.
Operator
Thank you. Next question is from the line of Prakashal Jain from Lucky Investment Managers. Please go ahead.
Ankush Agarwal
Hello sir. Thank you for the opportunity. My first question is sir, this take spend of about 107 crores that we have capitalized, is it fair to assume that this is mostly manpower cost or there’s some expenditure on infrastructure as well?
Avinash Ramesh Godkhindi
It’s a Combination. A lot of it is manpower, as I clarified in the previous call as well, we capitalize our new product development, not our ongoing maintenance. But largely it is its people cost.
Ankush Agarwal
Okay, and so how much do we plan to spend in a similar way next year and the year after that?
Avinash Ramesh Godkhindi
It’s difficult to give a specific estimate on a cost line item. But this is a, this is a phase with AI coming in where you know, there is a certain amount of investment that we will need to do to build a product which we will be able to take not just in the Indian markets, but global markets. Right. And then if you look at the kind of investments that the global players make, you know, on tech and product, we are a fraction of that cost, an absolute fraction of a fraction of that cost. So we will invest prudently, we will invest wisely while protecting our margins and our cash flows.
But that investment is critical for building market leadership, you know, in other markets and to grow the market leadership that we have in India.
Ankush Agarwal
So fair to assume that expenditure will continue at a similar rate for the next two, three years.
Avinash Ramesh Godkhindi
Difficult to give specifics, sir. I don’t want to get tied down into ballpark
Ankush Agarwal
Is fine.
Avinash Ramesh Godkhindi
Please let, let me, let me not tie myself into any knots here by giving you any specifics.
Ankush Agarwal
No problem, sir. My next question pertains to a couple of balance sheet items. So one is why is this 40, 50 crore short term borrowing has come up despite the already having cash.
Avinash Ramesh Godkhindi
So this is basically to be able to quickly deploy the capital and you know, grow the business. This is a short term borrowing that we sometimes need to do to be able to drive traction. That’s the whole thing. It’s very short term in nature.
Ankush Agarwal
Okay. And there is a 10 crore loan given to others. So what is that
Avinash Ramesh Godkhindi
10 crore loan to others? Are you talking about the loan that we gave to Dice? Yeah, that should be the one, sir. So we gave a loan to the company to keep it functional and that has been adjusted, you know, completely against the 68 crore payout.
Unidentified Participant
Okay. Okay, good. All right. Thank you for the answer, sir. All the rest,
Avinash Ramesh Godkhindi
Thank you.
Operator
Thank you. Next question is from the line of Akshat Mehta from Seven Rivers Holding. Please go ahead.
Ankush Agarwal
Hello, I’m audible.
Avinash Ramesh Godkhindi
Yes. Yes, sir.
Ankush Agarwal
Yes sir. So I just want to ask you on your other, your top three products, except for safe propellants, oil, you know, the other products are state management and your forex solutions, you know. So how are they doing?
Avinash Ramesh Godkhindi
So those are products which are doing very well. They will start generating revenue in the coming quarters, some of these products like Fleet, are already generating some revenue. We have some very good customers like Adani, we have ThinkGas, AGP, Pratham, that is and many others. In the CDG side. We are hopeful that we’ll crack some OMCs, oil marketing companies in the coming quarters. Coming to the international payments as well, we are seeing some traction. There are, but as you would agree, a lot of These businesses being B2B in nature, have gestation parades.
It’s very hard to crack into an iocl, HPCL or bpcl. There is some business that we do with some of them, but sizable would take some time. Similarly, Zatix is a high margin business. It’s a straight, pure software business for card analytics and that’s all bottom line income. And as that business grows in the coming years, it will add a lot to our bottom line. Very little to the top line per se, but it’s straight bottom line income. Very similar to fas. It is like FAS income. So there also we will see traction in the coming quarters.
Ankush Agarwal
Thank you. My second question is on the, you know, the Middle east expansion that we’re doing. Can you just help us, you know, elaborate on what is the exact roadmap strategy to go there, you know, where are we going to expand, what are we going to kind of offer first, etc.
Avinash Ramesh Godkhindi
Lighter note, if we knew that then, you know, we would have been, you know, very, very happy. But you know, it’s a, a very volatile situation, as you would agree, and every day we hear a different piece of news. So what we are doing is we are continuing to engage with all the stakeholders in that region virtually. But that’s also a region or a market which requires a fair degree of in person engagement, a relationship based market, much more than many others. And as you would agree, relationships are built by spending time in person much better than virtually.
So we are just keeping the conversation going and the relationships warm. And as soon as the war or warlike situation is finishes, we would want to spend significant time there in those markets to be able to start getting traction. Those conversations are ongoing, but to be able to close anything substantial in terms of a partnership, it would require us to spend some time in the market.
Ankush Agarwal
So currently we don’t have any on ground tenants there.
Avinash Ramesh Godkhindi
Currently we don’t have any on ground. You’re absolutely right. Through the APA that we did with Dice, we get some basic contracts with some customers and some ongoing conversations. But again, that nascent.
Unidentified Participant
Thank you, sir.
Operator
Thank you participants, please limit your question to 2 per participant should have a follow up question. We request you to rejoin the question queue. Next question is from the line of Kiran Gargay from Kitestone Capital Management llp. Please go ahead.
Kiran Gargay
Hi, good evening. Could you please split the other current asset between prepaid cars and voucher for FY26?
Avinash Ramesh Godkhindi
Sorry, I didn’t get that question. Sir,
Kiran Gargay
Could you please split the other current asset between prepaid cards and vouchers for FY26?
Avinash Ramesh Godkhindi
There are multiple line items in the other current assets. So wouldn’t want to go into specific line items on this call. That’s the information that the company publishes.
Kiran Gargay
No, I mean because it’s the major item. These are cards and vouchers. If you could give a sense, how much was it for this year?
Avinash Ramesh Godkhindi
As I said sir, it’s not just these two line items. There are multiple line items in other current assets and we generally don’t give a breakup or specifics on that. And that’s the stand that we maintain per se.
Kiran Gargay
Okay, and what sort of revenue can we expect from fleet management in the future?
Avinash Ramesh Godkhindi
We are aware of the kind of customers that we are chasing there. It’s a high concentration customer with large volumes in terms of spends. I took the names of the OMCs already and as and when we are able to crack those contracts we will share with you specifics as to what the estimates are. If those estimates are, you know, quantified and contracted and committed by the OMCs.
Unidentified Participant
Okay, thank you.
Operator
Thank you. Next question is from the line of Akhil Gulesha from Hornbill Capital. Please go ahead.
Ankush Agarwal
Hi Avinash. My question is on the propel business. So we generate roughly 45 crores of net revenue and on thousand crore plus of gross revenue. So I just want to understand why is this business in existence? Because it feels like the problem is cash flow. So to generate 45 crores of net revenue, hundreds of crores of our working capital is stuck in our balance sheet. So this seems like the easiest way to generate cash flow. It doesn’t feel like you’re generating enough roe or roce on this business.
Avinash Ramesh Godkhindi
I don’t necessarily agree that it’s hundreds of crores per se stuck through the years. But your point is well taken. That’s the reason why we are trying to optimize on this business. This business is also a feeder business for our larger business. It brings in a lot of stickiness. It brings in opportunity for us to cross sell upsell significantly. And so there are lots of benefits that the business brings. Also please recognize that 90% of the stock that happen on Propel happen on a prepaid card and that revenue sits under program fees.
Right. It’s the 10% that gets redeemed on vouchers that gets classified separately as propel points revenue as per India’s. So the overall propel business is an extremely valuable business and an extremely cash generating business for us over the years it’s going to be. But we are focused on optimizing on cash flow and that’s why we have taken some steps this quarter as well.
Ankush Agarwal
Understood, understood. I understand the cross selling part and I think that has given us a lot of advantage. But the suggestion was because as an investor it feels like program fees is the juicy part of the business where you generate a create amounts of cash every year and all of that is getting stuck in those prepaid cards, putting the balance sheet. So it was a suggestion that if you could just focus on that and start generating positive cash flows, street might look at our business differently.
Avinash Ramesh Godkhindi
Point well taken, sir. But just to clarify, program fees is income generated as interchange and any interaction incentives we get from networks for both prepaid network cards as well as credit cards. Right. And Propel platform generates revenue both through prepaid network cards in the form of program fees as well as you know, propel points which is redemptions that happen of those points on vouchers of over 300, 350 brands. So. So it’s a complex business. It has many layers and levers to it. But overall, yes, we sort of are seeing the need to be able to focus on the cash cash flow and the roc roce.
So point well taken. We are working on those lines to. Without impacting the business and impacting the relationships, how do we optimize on these matrices or these.
Ankush Agarwal
Got it, got it. Thank you so much Avinash and best of luck for next year. Hopefully we’ll see a large part of our pat converted to operating cash flow next year.
Avinash Ramesh Godkhindi
Thank you.
Operator
Thank you. Next question is from the line of Jaish Shah from OHM Portfolio Equi Research. Please go ahead.
Ankush Agarwal
Hi. Thanks for the opportunity. Avinash. I have a couple of questions. First of all on the overall EBITDA guidance which has not been given, what is the impact because of dice? Because I see revenues of dice would be at 10 crores. So expenses can’t be too much. Would it be fair to say that the fourth quarter run rate or annual run rate is will be maintained and any upside is something that you are not able to guide us on the guidance?
Avinash Ramesh Godkhindi
So thank you for Your question. See the impact of DICE in the consolidated basis is, you know, probably nothing different from what was originally envisaged when we signed the term sheet, if at all. It’s better now. But what’s happened is because the nature of the contract has moved from a, you know, share purchase agreement, 100% acquisition to APA, an asset purchase agreement. So the costs have come directly on the standalone entity. The 10 crores also is the FY25 numbers. The FY26 numbers are significant, significantly higher.
And those contracts are all with us. All the revenue generating contracts are with zagl as well as the pipeline of customers. But having said that, it’s too premature for us to talk of how much the margins will change right now because end of the day we are also integrating and we are, as Rajesh also mentioned, giving top priority to cash flows followed by growth and then followed by margin expansion and ebitda.
Ankush Agarwal
No, I understand that my simple question is dice basically a loss making at the net level that could impact your run rate of whatever. 50 crores of EBITDA, 55 crores of EBITDA that you have every quarter. So would the next two quarters actually see a meaningful reduction?
Avinash Ramesh Godkhindi
Guys, was a loss making company in FY25, sir, and likely to be losing loss making company for FY20. We are obviously would try and optimize there and make sure that we are able to, you know, leverage it in such a way that we are able to extract profits in the coming years.
Ankush Agarwal
Right. Because again my this is, this drives to my basic question that you have ramped up the business six times from FY22 onwards. But whatever you have gained in terms of say operating leverage, you have lost out more on the gross margin, which is the other way to say on the take rate. So whatever. So it’s like growth is coming at an incremental lower margins and now your growth rate is also moderating. So is that a challenge? Given the focus now on cash flows, that margins can actually see further downside.
Which actually means that your 11 to 14% medium term guidance actually gets postponed due to DICE and the overall moderation growth rates,
Avinash Ramesh Godkhindi
Overall guidance of 14 to 15% over the course of next five years remains. But in the interim, of course the ramp up which we would have otherwise seen probably close to a percentage point every year that might go through some temporary variation. But overall we see the margin expansion to be there over the course of the next five years. You’re right. But you know, with the world changing so much and AI coming in There is huge opportunity also getting created and we would want to further consolidate our market leadership in the spend management space.
If you look at it where we were in FY22 or 23 in terms of spend management, where there are multiple other players would take claim that they also had some sort of meaningful presence in spend management to today where the clear market leadership sits with Zaggle, I think it’s a very important thing for us to be able to consolidate on that. And please also appreciate that in the coming years as we go to the global market, while initially there will be some investment required, eventually those markets generate much higher margins, whether it’s the Middle east or even the US So the margin expansion would also kick in from those actions.
And potentially we’ve still not shut door on other acquisitions. So we will keep looking at good opportunities which might help us expand our margins as well.
Raj P Narayanam
Thank you very much.
Avinash Ramesh Godkhindi
Thank you.
Operator
Thank you. Due to time constraints, that was the last question of the day. I now hand the conference over to management for closing comments.
Avinash Ramesh Godkhindi
Thank you all for participating in today’s call. We hope we have addressed all your queries and provided valuable insights. We remain optimistic and focused on the future growth of the company and we are excited about the opportunities ahead. For any further information, we request you to get in touch with sga, our investor relations advisor. Thank you and have a nice day.
Operator
Thank you. On behalf of the Zaggle Prepaid Ocean Services Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your line points.