Zaggle Prepaid Share Price Falls 20% To 52-Week Low After Weak Q1 Results
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Zaggle Prepaid Ocean Services shares crashed 20% to a fresh 52-week low after the company's June quarter results showed a sharp sequential drop in profit and EBITDA margins, with the Dice and Zagg.Money acquisitions weighing on profitability.
Shares of Zaggle Prepaid Ocean Services fell as much as 20% on Monday, August 17, hitting a fresh 52-week low after the SaaS and fintech solutions provider reported a weak set of numbers for the June quarter of FY27. The stock opened at Rs 182.40 on the NSE, against its previous close of Rs 200.59, before extending losses to an intraday low of Rs 160.48.
At 11:45 am, shares of Zaggle Prepaid were trading 20% lower at Rs 160.48, down Rs 40.11, even as the Nifty 50 declined 0.35%. The small-cap stock has fallen nearly 24% over the past month and more than 55% so far this year.
Zaggle Prepaid Q1 FY27 Results Snapshot
On a year-on-year basis, consolidated net profit fell 33% to Rs 17.5 crore from Rs 26.1 crore in the same quarter last year. Revenue, however, moved higher, rising 27.5% year-on-year to Rs 423 crore from Rs 332 crore a year earlier. EBITDA stayed broadly steady at Rs 31 crore, though the margin contracted to 7.3% from 9.2% in the year-ago period.
The picture looked weaker on a sequential basis. Compared with the preceding March quarter, net profit dropped 56.9% from Rs 40.6 crore, while revenue declined 31.6% from Rs 618 crore. EBITDA fell 47.7% quarter-on-quarter from Rs 58.1 crore, with the margin narrowing from 9.4% in Q4FY26. The company said its Propel business saw improved margins during the quarter, helped by a strong showing from Greenedge and overriding commissions, while incentive and cashback expenses as a share of revenue eased to around 66.3% from 69% in the previous quarter.
Why Margins Were Under Pressure
Zaggle attributed the margin contraction to a mix of one-off and structural factors. Costs tied to the Dice acquisition, including transaction expenses, one-time vendor payments and relocation costs for more than 100 professionals, weighed on profitability during the quarter, even as revenue from Dice contracts was not yet recognised and is expected to begin reflecting from the second quarter of FY27. The company also pointed to a higher proportion of previously capitalised expenses now being recognised in the profit and loss account, along with annual employee salary increments and additional costs following the acquisition of Zagg.Money.
As on 11:45 am today shares of Zaggle Prepaid Ocean Services fell to Rs 160.48 apiece, down 20% for the session.
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Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
